In early 2009 renowned bond investor and PIMCO chief investment officer Bill Gross and CEO Mohamed El-Erian proclaimed the emergence a new post-financial crisis era, coining the phrase “new normal”. They predicted a period that would be characterized by several years of economic stagnation and below average equity returns in the U.S. and in other

From 1980 to 2006, the U.S. financial services sector grew from 4.9% to 8.3% of GDP. A substantial share of that increase represented increases in asset-management fees. Excluding index funds (which make market returns available even to small investors at close to zero expense), fees have risen substantially as a percentage of assets managed. In

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

Eugene Fama, whose groundbreaking work on asset pricing and capital markets has been at the core of our investment strategy since the late 1990s, has been awarded the Nobel Memorial Prize in Economics along with Robert Shiller and Lars Peter Hansen. Widely recognized as the father of modern finance, Professor Fama is perhaps best known

Investors who heeded our simple, timeless principles and followed our recommended allocations would have generated respectable returns during 2012. This is also true for longer time periods (see page 2 for hypothetical returns on our recommended portfolios). • I will understand my own circumstances and formulate an investment plan based on my needs, not in

With April 15 fast approaching, we would like to point to several observations regarding federal income taxes that might be of interest to our readers. According to IRS data, 143,399,737 individual tax returns were filed for calendar year 2011. Of this total 1,481,966, or roughly one percent, were subjected to an IRS examination (audited) during

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

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

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

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