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Friday, March 6, 2009

Concurring Opinions II

Evensky & Katz is a well-known and very successful investment advisor. They are successful in part because of the way they educate and communicate with clients, and we aspire to the same. In this piece, Harold Evensky provides his thoughts on the current market cycle. Many of his views are similar to those of Bond & Co., and he does an excellent job of presenting the same data which has influenced our philosophy and response to the current financial and economic crisis.

Please note that Harold and I do not agree about everything (what a surprise). I don't advocate any of the first four "Hedging Alternatives" he lists at the end of the article. We could certainly execute all four options, but we seriously doubt that they have any cost/benefit advantages. We have employed Option 5, which we advocate only after having a serious discussion about risk tolerance.