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Jun 25, 2015 | Post by: modelcap Comments Off on Consumers Are Back –

Consumers Are Back –

After a winter hiatus, consumers are back! Spending increased by 1.36% in May according to the Census Bureau, well above economists’ expectations. Employment that’s the strongest in 15 years by some measures, higher home prices, and savings form lower energy prices, are helping Americans feel secure enough to boost spending.

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Jun 11, 2015 | Post by: modelcap Comments Off on Tactical bond strategies for low-rate environment –

Tactical bond strategies for low-rate environment –

This is our tactical management update on our current view on the bond market. We at Model Capital utilize our fixed income models to help advisors who actively manage fixed income portfolios in their efforts to achieve better yield for their clients while reducing exposure to rising interest rates. The

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Jun 01, 2015 | Post by: modelcap Comments Off on Does Greece Matter?

Does Greece Matter?

What consequences would a Greek default have? My answer would be very different depending on, consequences – for whom. For Greece, in my opinion it would be devastating. Locked out of debt markets and without further aid, Greece would have enormous difficulty finding funds to pay government workers and cover

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May 31, 2015 | Post by: modelcap Comments Off on Tactical Management: From Theory To Implementation –

Tactical Management: From Theory To Implementation –

Confused by “tactical management?” You are not alone – it continues to be a broad term that includes a variety of active investment strategies. I wanted to share my latest article, Tactical Investment Management: From Theory To Implementation, just published by IMCA’s Investments & Wealth Monitor. In it, I tried to clarify these questions:

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May 31, 2015 | Post by: modelcap Comments Off on Many Investors Are Still in Cash –

Many Investors Are Still in Cash –

Bankrate.com recently published the results of their Financial Security Index survey. Americans where asked where they prefer to keep the #money they would not need for 10 years. 25% of investors still prefer to keep the money in savings and CDs, where it earns practically nothing! 23% prefer real estate, 19% the

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May 31, 2015 | Post by: modelcap Comments Off on The Biggest Problem for Active Investors –

The Biggest Problem for Active Investors –

– is not the economy or geopolitics. It is their own sentiment. The current mild market weakness has many investors concerned and selling stocks. In recent years, most times this happened, the market “whip-sawed” back up. Investors make decisions based on subjective opinions of the experts – or their own –

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May 31, 2015 | Post by: modelcap Comments Off on Liquidity Continues to Support Asset Prices

Liquidity Continues to Support Asset Prices

All major central banks – the Fed, ECB, and BoJ – bought bonds since 2008, creating tremendous influx of liquidity (see chart). This kept interest rates low, and boosted the global economy through low borrowing costs for consumers and businesses. The Federal Reserve ended its bond-buying quantitative easing (QE) stimulus in

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May 31, 2015 | Post by: modelcap Comments Off on How Advisors Benefit From ETF Strategists –

How Advisors Benefit From ETF Strategists –

A growing number of Advisors are discovering the growing ETF market to be highly effective for implementing the desired asset allocation for their clients. For many, partnering with an ETF Strategist is the most cost-effective avenue for incorporating this type of investment management into their practices. The paper by State

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May 31, 2015 | Post by: modelcap Comments Off on The Key to Successful Tactical Management –

The Key to Successful Tactical Management –

To protect against significant equity market downside, some managers adopted technical indicator-based “models.” Unfortunately, such systems often amount to selling low and buying high, with performance loss from market “whip-saws” over time far outweighing expected protection benefit. As a result, performance for many managers suffered in 2014. Tactical investment management

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May 31, 2015 | Post by: modelcap Comments Off on Q&A with Model Capital’s CIO on BeyondAlpha –

Q&A with Model Capital’s CIO on BeyondAlpha –

In an introductory Q&A to BeyondAlpha’s community, Roman Chuyan, MCM’s President and CIO, discusses the firm’s unique take on tactical investment management – a fundamental-factor, forward-looking approach. He also discusses current market trends and expectations: All our strategies have consistently been in risk-on mode this year and most of last year, which

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