Portfolio Strength in Diversification

Recent market volatility notwithstanding, 2016 has been a “relatively good” investing year. This according to Zachary Karabell, head of global strategy at Envestnet, in an article for Barron’s. His opinion, however, is based on performance of a diversified portfolios as opposed to “esoteric” strategies such as “those of many hedge funds.” The performance of assets this year, he writes, “should be a sign that markets are stable and performing decently, rather than a harbinger of… Read More

Look at Valuations in a Vacuum

“Valuations and prices need to be judged relative not to the past but to price and valuation of other assets available right now,” writes Zachary Karabell, head of global strategy at Envestnet, in a recent Barron’s article. Karabell argues that such an approach in today’s environment of both low inflation and paltry interest rates would indicate that “equities overall are quite reasonably priced.” He warns against the approach where fairness of price is determined relative… Read More