November 28, 2011

Dychtwald and Retirement Reset; Gold’s New Environment: December Investment Advisor—Slideshow

December 2011, Investment Advisor December 2011, Investment Advisor

How is the "new retirement paradigm" holding up in the new normal? In the December issue of Investment Advisor, John Sullivan talks with well-known author, speaker and gerontologist Ken Dychtwald and Larry Roth, CEO of Advisor Group, about how the message is being received post-meltdown.

You can’t turn around without gold prices going up, which makes Savita Iyer-Ahrestani’s piece on investors’ most precious metal especially timely. Experts believe that the gold story may have changed slightly and that there has been a paradigm shift in how the investment world views gold. Will investors be able to stomach the new environment?

In this month’s Overlooked Managers, Mike Buckius explains how he and his team at the Gateway Fund are using long-short funds to great advantage. These products may have severely disappointed investors following the market crash, but Buckius’ strategy has a long history of proving critics wrong.

Retirement Reset

If you’ve been an advisor for any length of time, you’ve heard Ken Dychtwald speak. The CEO of research and consulting firm Age Wave was ubiquitous on the trade show circuit prior to the market crash of 2008 (we heard him speak at three separate events in a little over one year).

We haven’t heard much from Dychtwald since the economy went bad; like so many others, our retirement interest largely took a backseat to more immediate matters. We wondered how his message had changed in light of all that had happened—if at all. Was it stale? Were his predictions right? More importantly, did those audiences still cheer? Dychtwald answers those questions for Editor in Chief John Sullivan.

Read the full article.

Hiding in Plain Sight

The past decade has not been kind to most equity investors and their advisors. Two bear markets, two recessions and dramatic swings in volatility have prevented many from meeting the return assumptions built into their investment plans.

Looking forward, advisors and their clients are struggling to see how they can meet future liabilities with little expected return from fixed income allocations and diminished faith in equity markets. Economic growth will likely continue to be anemic over an extended period of time given the structural impediments facing economies in many parts of the developed world, and volatility is likely to remain high.

Advisors should consider a category that presents a realistic option for powering long-term return objectives with moderate risk by looking at high-quality, predictable global businesses with strong cash-flow growth. George Fraise, Robert Rohn and Gordon Marchand, co-founders of Sustainable Growth Advisors LP, describe how.

Read the full article.

Precious Metal

The world has been caught up in the throes of a major gold rush, one that seems to have no end in sight. On one level, that’s not surprising. Humankind has had an unconditional trust in gold, and in troubled times, gold has always been a safe haven for investors. Even now, despite a recent market sell-off and a fall in the price of gold, the lure of this most precious of precious metals continues to attract investment dollars, and it remains the ultimate safe haven investment destination.

All the same, experts believe that the gold story may have changed slightly and that there has been a paradigm shift in how the investment world views gold. That paradigm shift will determine, they say, the direction of gold prices going forward and condition the forces that drive the price of gold up or down. Savita Iyer-Ahrestani uncovers some of the forces at work on gold prices.

Read the full article.

The Long and Short of Long-Short Funds

As the financial crisis worsened, so too did the prospect of long-short funds achieving their promised returns. Chalk it up to another investment product that failed its hype when the bubble burst. Like so many other products, they severely disappointed investors when it all went bad, threatening the very idea of employing hedging strategies in mutual funds as a whole.

But Mike Buckius and his team at the Gateway Fund have a long track record of making the strategy work, belying critics ready to write the product off. John Sullivan explains.

Read the full article.

Schwab's Deep Impact

If you want sound bites, Schwab Impact 2011 in San Francisco had them. Chuck Schwab called Fed Chairman Ben Bernanke’s take on the economy “BS” and said President Barack Obama lacked the necessary strength to turn the ailing economy.

PIMCO head Bill Gross stuck to his usual no-nonsense style, saying that “for 20 years we’ve been making paper rather than things, and in the process we created a number of liabilities. We’ve been like bad squirrels, not putting enough away.”

Former U.K. Prime Minister Tony Blair lectured attendees on our geopolitical and economic situation, calling it unproductive to focus on who caused the financial crisis and how to prevent a recurrence. James J. Green of Investment Advisor and Janet Levaux of Research were there to catch it all.

Read the full article.

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