Investment Notes

Island Light Investment Notes (April 2013)

My hometown I was born in Boston, raised in its suburbs, and learned my craft downtown.  I drive on Boylston Street, watch the Marathon and root for the Red Sox.  The senseless murder and mayhem wrought on my hometown on Patriots Day makes me terribly angry and very sad.  What possible political statement, religious cause or frustrated anger can...

Continue reading...

Island Light Investment Notes (February 2013)

For want of a nail You know how little things can create major pain? In December, I broke my middle finger playing hockey.  On the scale of illness and injury, mallet finger is a trivial annoyance.  It hardly merits discussion.  It’s a scratch, a nit, a bother.  But my seemingly inconsequential finger break has caused the rest of my hand, body...

Continue reading...

Island Light Investment Notes (January 2013)

All systems go. With the lifting of the debt ceiling, the political class in Washington announced that all systems are go to flood the US economy with supercharged fuel.  The turbos are charged and the engine is revving.  Add a liberal dose of monetary easing along with a dash of conservative reluctance to raise taxes and you have a recipe for short...

Continue reading...

Island Light Investment Notes (November 2012)

The major economic event in November was also the major political event of the month, the outcome of the US election.  While it is too early to assess the impact of the November presidential election on the economic outlook for 2013, we do know more than we did. This lifting of uncertainty is a positive for global markets, at least until the lame duck...

Continue reading...

Island Light Investment Notes (October 2012)

It is too late to plan for the hurricane when the hurricane is at your door.  Sandy’s aftermath is still being felt by many, particularly in New York and New Jersey, and we pray for those affected.  Those who heeded the warnings, left their low-lying homes and had flood and home owner’s insurance were the lucky ones.  Even those who lost property...

Continue reading...

Michaud Optimization vs. Morningstar’s Encorr

New Frontier Advisors has published an important paper outlining the benefits of Michaud optimization versus Morningstar’s Encorr optimizer. The differences are subtle, but important, and we applaud our friends at New Frontier for their continuing good efforts to advance the state of portfolio construction. Please follow this link to download...

Continue reading...

Island Light Investment Notes (August 2012)

It’s the first of September, and time to go back to school. Expect September and October market volatility to be higher than the last four months, as portfolio managers, brokers and analysts return from vacations.  Active managers, behind in their performance, will increase trading and portfolio risk in order to salvage year-end bonuses.  Brokers...

Continue reading...