Clay Christensen: Disruption and Innovation Can Solve Global Poverty

Laurence Articles

Disrupt. Innovate. If these words echo through your head like a familiar TV show theme song, you’ve been influenced — whether you know it or not — by Clayton Christensen. A Harvard professor, businessman, and guru of disruptive innovation, Christensen has altered our vocabulary, inspired a generation of startup entrepreneurs, and made a bundle on the speaking circuit at $100,000 …

How Paul Volcker Saved Our Country

Laurence Articles

When I had the pleasure of introducing Paul Volcker at a conference, I referred to him as “the man who saved the country.” This was not hyperbole. It is hard to remember the deep trouble we were in, more than 40 years ago, when inflation reached 13% in 1979. Times were terrible. A generation’s life savings, invested mostly in bonds, …

Combining Conventional Investing with a Lifetime Income Guarantee: A Blueprint for Retirement Security

Laurence Articles

by Thomas L. Totten and Laurence B. Siegel The central problem in achieving retirement security: Longevity risk Why is it so difficult to save for retirement in such a way that the retiree feels financially secure for the rest of his life? Why is so much effort spent on investment optimization, withdrawal rates, and other strategies designed to increase the …

Clay Christensen: Disruption and Innovation Can Solve Global Poverty

Laurence Articles

Disrupt. Innovate. If these words echo through your head like a familiar TV show theme song, you’ve been influenced – whether you know it or not – by Clayton Christensen. A Harvard professor, businessman, and guru of disruptive innovation, Christensen has altered our vocabulary, inspired a generation of startup entrepreneurs, and made a bundle on the speaking circuit at $100,000 …

Tributes to Jack Bogle (1929-2019)

Laurence Articles

Collected by Ted Aronson, Larry Siegel and Robert Huebscher We’ve collected the following tributes to Jack Bogle from among the authors who contribute to Advisor Perspectives and other prominent individuals in the investment industry.

Building Portfolios for Households with Multiple Investment Goals

Laurence Articles

This is the second article in a series that aims to enhance the methodology by which financial planning is conceptualized and implemented. In the first article in this series, “Using Economic Balance Sheets for Financial Planning,” we showed that financial planners need to have balance sheet (“stock”) information, not just income and expense (“flow”) information, about households in order to …

How Paul Volcker Saved Our Country

Laurence Articles

When I had the pleasure of introducing Paul Volcker at a conference, I referred to him as “the man who saved the country.” This was not hyperbole. It is hard to remember the deep trouble we were in, more than 40 years ago, when inflation reached 13% in 1979. Times were terrible. A generation’s life savings, invested mostly in bonds, …

On Pigs, Cobwebs and Howard Marks

Laurence Articles

I can guarantee a few things about Howard Marks’ new book, Mastering the Market Cycle. You will enjoy the thoughtful writing in clear language, and you will learn one great, and I believe correct, idea about the operation of markets. But you will not master the market cycle. Nobody can. What you can do, as part of a broader program …

On Pig Farming, Cobwebs and Howard Marks

Laurence Articles

I can guarantee a few things about Howard Marks’ new book, Mastering the Market Cycle. You will enjoy the thoughtful writing in clear language, and you will learn one great, and I believe correct, idea about the operation of markets. But you will not master the market cycle. Nobody can. What you can do, as part of a broader program …

Conference Roundup: Cullen Roche on Why We’re All Active Investors

Laurence Articles

Cullen Roche, an Encinitas, California chicken farmer, heterodox thinker, monetary theorist, blogger (http://www.pragcap.com), and investment manager specializing in taxable portfolios spoke at the Foundation Financial Officers Group (FFOG) semi-annual conference in Santa Barbara on October 24, 2018. He is the founder of Orcam Financial Group. In addition to my other roles I am the investment thought leader for FFOG, and …

Michael Lewis on the Hidden Benefits of Competent Government

Laurence Articles

Michael Lewis is such an engaging writer that it’s been said he could tell a gripping story about a piece of dirt in the road — beginning with the geological origins, several billion years ago, of the dirt’s mineral components. Lewis can write conservative (The Blind Side) and he can write liberal (“Obama’s Way”). He can turn nerdy statistical analysis …

Michael Lewis’ Frightening Account of Government in the Age of Trump

Laurence Articles

Michael Lewis is such an engaging writer that it’s been said he could tell a gripping story about a piece of dirt in the road – beginning with the geological origins, several billion years ago, of the dirt’s mineral components. Lewis can write conservative (The Blind Side) and he can write liberal (“Obama’s Way”). He can turn nerdy statistical analysis …

Conference Roundup: Sam Huntington’s Clash of Civilizations 20 Years Later

Laurence Articles

In 2003 I attended a talk by Samuel Huntington, the late Harvard historian who made a big splash with his 1997 bestseller, The Clash of Civilizations and the Remaking of World Order. It was an “answer song” to The End of History and the Last Man, written by Francis Fukuyama, one of Huntington’s former students and protégés. Fukuyama’s book proposed …

What Investment Risk Means to You, Illustrated: Strategic Asset Allocation, the Budget Constraint, and the Volatility of Spending During Retirement

Laurence Articles

Investment advisors, managers, and their clients talk about balancing risk and return when advising clients on their strategic asset allocation (SAA) policy for the overall portfolio. This is true whether the client is an individual, a pension plan, a foundation or endowment, or a sovereign wealth fund. SAA investment policy or strategy is typically set by choosing from among a …

Introduction to: The Prosperity Puzzle: Restoring Economic Dynamism

Laurence Articles

Is the world economy in a long-term slowdown? Are our best days behind us? Is productivity growth, widely agreed on as the principal driver of broader economic growth, headed for a long period of subpar performance? If so, what can we do to remedy the situation and restore economic dynamism? Investors, business leaders, policymakers, and academic economists each have their …

Don’t Be Fooled by the Yield Curve

Laurence Articles

For the first time in at least 40 years, there’s a fundamental economic reason that a yield curve near-inversion might not herald a recession. The U.S. Treasury yield curve is currently flatter than usual, not quite inverted but close enough to make some people nervous — since, in the past, recessions have almost always followed. I will make the case …

Don’t Be Fooled by the Yield Curve

Laurence Articles

For the first time in at least 40 years, there’s a fundamental economic reason that a yield curve near-inversion might not herald a recession. The U.S. Treasury yield curve is currently flatter than usual, not quite inverted but close enough to make some people nervous – since, in the past, recessions have almost always followed. I will make the case …