Dear Readers,
Welcome to the second edition of Investing Insider, the new markets and investing newsletter for Business Insider. I’m Joe Ciolli, the senior investing editor here at BI, and things are heating up in markets-land as an extremely important earnings season gets underway.
Stocks may be near a record high, but there’s no shortage of cautious commentary coming out of Wall Street as companies start to report. Morgan Stanley says there’s very little room for error, while JPMorgan can’t believe the market has been so willing to shrug off recent recession scares.
Meanwhile, a CIO overseeing $237 billion at Deutsche Bank is forecasting a choppy ride going forward, and is recommending four main hedges.
As you wade through the crosscurrents trying to figure out what to do, I’d recommend you browse Business Insider’s recently released 100 People Transforming Business series. For the project, our team contributed the 10 People Transforming Investing — and it’s a who’s who of big, influential names.
Individuals like JPMorgan quant guru Marko Kolanovic, smart-beta investing pioneer Rob Arnott, and notorious short seller Andrew Left made the list. Find out who else here.
Going beyond that major undertaking, the Investing team at Business Insider has also been busy speaking to some of the industry’s biggest and most influential names:
2 of America’s most acclaimed wealth managers for the ultrarich explain why a famous approach to retirement investing is dead wrong — and reveal what people should do instead
Jeff Erdmann of Merrill Lynch and Peter Mallouk of Creative Planning — two of the nation’s top wealth managers — both think the idea that younger people need stocks and older people should own bonds is outdated and wrong.
While each individual has a different criticism of the philosphy, they both say investors need a different approach — one that more accurately represents their needs.
A stock picker who’s dominating 92% of his peers breaks down his market-beating strategy — and reveals 5 stocks he loves, even as earnings growth dries up
Jim Tierney, the chief investment officer of the $522 million AB Concentrated Growth Fund, is tasked with finding companies that can deliver earnings growth regardless of the market-wide climate. And he’s done a good job: The fund has outperformed its Lipper category on an annualized basis during each of his five years as CIO.
In an interview with Business Insider, he detailed the numerical and subjective criteria that go into his stock-picking process, and the reasons he’s betting on five companies to withstand a slowdown in earnings growth.
America’s biggest wealth manager oversees $39 billion for the ultrarich. Here are the 5 ways he says you can invest like ‘the millionaire next door.’
Peter Mallouk, who’s been one of the top-ranked US wealth managers in recent years, disagrees with the basic philosophy underpinning most retirement investing.
He says investors should figure out what they’re going to need in retirement and invest to meet those requirements. Mallouk also argues that their age and risk tolerance should have nothing to do with it.
Other good stories from the investing realm:
- ‘Vulnerable to catastrophe’: One market bear explains why stocks will crash 30% by the end of 2019 — and then flatline for the next 12 years
- JPMorgan quant guru Marko Kolanovic shared with us the often-overlooked force dictating market returns — and revealed what it’s saying about the future
- Credit Suisse studied 20 years of Warren Buffett’s acquisitions to replicate his approach — and it’s identified 12 stocks you should buy right now
- Bank of America has discovered a simple trade that’s tripled the market’s return: Buy stocks the ‘smart money’ hates. Here’s how you can get involved.
- Weaker profits, lower valuations, and huge price swings: Goldman Sachs lays out 5 reasons why the proposed ban on share buybacks would be a complete disaster
- The US economy increasingly looks like it’s past the point of no return — and not even the Fed can save it from the next recession
See Also:
- Bank of America scoured hundreds of mutual funds with $1.5 trillion in assets and identified 7 neglected stocks poised to surge after crushing earnings
- JPMorgan quant guru Marko Kolanovic shared with us the often-overlooked force dictating market returns — and revealed what it’s saying about the future
- Weaker profits, lower valuations, and huge price swings: Goldman Sachs lays out 5 reasons why the proposed ban on share buybacks would be a complete disaster
Source: Business Insider – jciolli@businessinsider.com (Joe Ciolli)