INSIGHTS
Chasing Dividends Instead of Buying Bonds
Michael Miller CFIP, President, CIO
Dennis Scarpa CFA, Senior Analyst
One of the biggest challenges facing retirees is trying to find the “right” amount of money to receive on a monthly basis.
WAM 1st Quarter Commentary
Greg Miller CPA, CEO & Portfolio Manager
Michael Miller CFIP, President, CIO
Jim Buckham CFA, Portfolio Manager
The outbreak of the global COVID-19 pandemic resulted in historic economic and market volatility in the first quarter of 2020.
The Convertible Investor – Spring 2020
Greg Miller CPA, Publisher and Michael Miller CFIP, Editor
An Informative Guide for Investors Who Seek Growth and Preservation of Wealth. The Markets and Convertible Bonds: A Plan to Stay the Course.
Why Convertible Bonds
Michael Miller CFIP, President and Chief Investment Officer
Dennis Scarpa CFA, Senior Analyst
Convertibles are a unique asset class that is often overlooked by many investors. They can offer the best of both worlds, combining desirable features of both stocks and bonds.
Bull, Bear and Upside-Down Markets
By Jim Buckham CFA, Portfolio Manager
Bull and bear stock markets have been around since the beginning of stock indices in 1896. Currently, we are in the longest bull market for stocks on record. What people forget is bear markets can last a long time or they can wipe out significant amounts of wealth quickly. This paper looks at severe bear markets throughout history. In addition, it looks at the current state of the global economy, central banks’ reactions to slow growth, and what this may tell us about future stock performance.
Sequence-of-Returns Risk
By Michael Foley, Senior Vice President
At Wellesley Asset Management, we have found that investing in convertible bonds issued by companies with high-quality balance sheets, purchased near their par value, and with a properly structured maturity schedule may assist in managing sequence-of-return risk.
A Genius, an Investment Guru, and a Golfer Walk into a Par
By Michael Foley, Senior Vice President
Take a look at the two investments below. Which would you prefer? The simple average of returns in Investment A would be 10% (29+20-30+21=40/4=10). The simple average of returns in Investment B would be 10% (19+11-4*14=40/4=10). Unfortunately, simple averaging does not paint a clear picture nor is it appropriate to use with market returns. Annualized averaging is a far more accurate gauge due to the concept of compounding.
What Keeps Me Up at Night
By Jim Buckham CFA, Portfolio Manager
As a follower of the markets, I am often asked “What keeps you up at night”? This is another way of asking what concerns me about the current state of the capital markets. I would like to share some of my observations about the stock and bond markets and why I feel that, going forward, investors should proceed with caution.