For many years investors have endured a confusing dual legal standard of care that exists within the money management industry. Registered Investment Advisers (RIAs) such as AIS must place their clients’ interests first while others, such as brokers, are held to a lower standard which only requires that they offer investment choices that are “suitable” […]

Risk-Free Rate of Return: the return on a risk-less asset, often proxied by the rate of return on Treasury securities. Students of business and economics are taught, invariably, that buyers of U.S. Treasury bills, notes or bonds can be certain of receiving the interest payments they are owed, as well as the face value of

The equity chart to the left is not pretty. Asset classes across the board have continued to spiral downward as the “subprime crisis” that began a year ago has blown into a credit crunch of epic proportion. The damage is far-reaching. As 401(k) and IRA balances dwindle, millions of workers may have to delay retirement.

The current bear market is one of the most severe on record. Before reviewing the recent performance of our recommended asset classes, however, we encourage readers to consider the chart on page 74 which puts the current market in historical perspective. The rising trend lines designate the bull market periods occurring since 1965. The falling

Investors have experienced the most dramatic upheaval in capital markets since the Great Depression. On several recent days your portfolio has probably experienced tremendous swings. However, thanks to prudent diversification that includes portfolio insurance in the form of gold, cash and short-term bonds, and most importantly by avoiding needlessly complex investment vehicles, we are confident

Our long-time readers are well aware of our skepticism toward “active” money managers; those who seek to outperform the overall stock market by picking “mispriced” stocks or by attempting to time the market’s gyrations. Our recommendations are instead based on the tenets of Modern Portfolio Theory (MPT) and the notion of market efficiency. Active managers

Sports are often said to be a metaphor for life, and every four years the Olympic Games provide us with an inspirational view of athletic prowess. Through endurance athletes, in particular, we are offered the chance to witness perseverance in the face of adversity. This year in particular investors may appreciate marathon runners who, at

On June 26 the share prices for Citigroup and Bank of America, both of which were already testing multi-year lows, tumbled by more than 4 percent. Our high-yield Dow (HYD) model, which holds both stocks and declined sharply as a result, will buy more of these shares if they continue to provide a high relative

Beginning this month, the Investment Guide will be printed in color. We hope that this change will make the Guide generally more readable and the details of our charts more distinguishable. In coming months we will be making further improvements. We have also added our corporate logo to the front page. Our clients have often

The first quarter of 2008 brought no respite for investors weary of the market volatility that began last year. The financial crisis that Alan Greenspan has called “the most wrenching since the end of the second world war” only deepened. Overall, however, our multi-asset class approach served investors well. Cash, short-term bonds and gold provided