The regulation of mutual funds is very much in the news. Not surprisingly, shareholders, fund managers, regulators, and, of course, politicians, are all weighing in with regard to the adequacy of current regulations. We contend that when it comes to reigning in abuses, no regulator can match the power of consumer sovereignty. Enforcement, ultimately, must […]

The yield curve has returned to “normal” status, whereby long-term interest rates exceed short-term rates. The chart below depicts the spread between the 10-year Treasury note and the 13-week Treasury bill. In mid-May the spread became positive. Long term rates, however, remain well below their historical average. The second chart displays the yield on the

  The greatest threat posed by the meteoric rise in mortgage defaults and the resultant collateral damage in the capital markets is that they might cause investors to abandon their long-term strategy. Investors who are aware of their capacity for risk, and who have established an appropriate allocation plan should view recent events as no