U.S. Treasury securities have long been regarded as the best proxy for a theoretical risk-free asset. Their payments are backed by Congress’s unique power to tax an economy that accounts for a quarter of the world’s entire economic output. But this risk-free reputation is now in question; as U.S. gross debt approaches 98 percent of […]

Norwegians have a well-deserved reputation for sound stewardship of their substantial oil wealth, and based on a recent study, they may become further noted for making a significant contribution to the active vs. passive investment debate. Funded by severance taxes and income from a 67% ownership stake in energy giant Statoil, a government-run petroleum fund

Discipline, once again, was the watchword during 2011. Throughout the year worrisome news emerged from all around the globe. Yet, by year end most investors who followed our recommendations would have seen little change in the value of their portfolios (see our AIS Model Portfolios table on page 2 for hypothetical returns). • I will

As 2013 draws to a close most of our recommended asset classes are poised to deliver full-year returns worth celebrating. At the risk of spoiling the party, however, we’ll take a more constructive approach and instead address head-on those concerns that might nevertheless be on the minds of our readers. Gold in particular is worth

Five years ago this month the Federal Reserve embarked upon a quantitative easing (QE) policy in an effort to bolster an economy that was on the ropes. Though it is difficult to measure QE’s contribution to growth it is clear that QE has created winners and losers among investors. QE is a technique distinct from

The MSCI Emerging Markets Index lost 9.9 percent of its value year-to-date as of August 31. The so-called BRICs (Brazil, Russia, India and China) have led the way down, as the MSCI BRIC Index lost 12.2 percent. The year thus far has been marked by social unrest in Brazil, chronic political corruption in Russia, a

Lowell Harriss, the late great economist and former Chairman of the AIER Board of Trustees was known as much for his humility as for his knowledgeof economics. At a recent event commemorating his mentor’s life, author and financial commentator Ben Stein recalled that in his lectures Professor Harrisswas never reluctant to admit that with regard

The investment industry is quick to tout investment products based on the latest research. Firms are under intense pressure to quickly bring compelling new products to market. Eye-catching results that appear to break new ground tend to get attention, while less spectacular but often very important findings get ignored. These distorted incentives exist not only

Headlines are proclaiming a rebound in the residential housing market, but investors and homeowners should be cautious. In March home prices rose on a national average by 10.9 percent from a year earlier, as measured by the Standard & Poor’s Case Shiller index, marking three straight months of year-over-year growth. Prices are still off the

We have completed an extensive review of data pertaining to gold and our recommended gold mining stocks. In light of alternative investment vehicles that are available we have concluded that these shares no longer provide the optimal means of ensuring exposure to the gold price. Investors should sell their gold mining shares and reinvest the