PIMCO’s Rob Arnott says a major demographic shift means bad news for U.S. markets in the coming decades, though he says smart baby boomers will still be able to hit their retirement goals within a year or two of their original plans. Arnott tells The Wall Street Journal that this is the first year ever [...]
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Tag Archives: Rob Arnott
Arnott On Why It Wasn’t A Lost Decade
December 5, 2011
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The “Lost Decade”: It’s a moniker that many stock market commentators have applied to the 2000s, a decade in which we saw two major bear markets and the S&P 500 benchmark ended up well in the red. But that doesn’t tell the whole story. “It was only a lost decade if you anchored on equities [...]
Read moreArnott: We’re In Recession; Emerging Markets Attractive
October 19, 2011
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Rob Arnott of PIMCO and Research Affiliates says there are “pretty high odds” that the economy is in the second dip of a double-dip recession, and thinks emerging market stocks are looking attractive. Arnott tells MarketWatch that he thinks the second dip into recession likely started around June, and that buying opportunities in the markets [...]
Read moreArnott on The Simple, “Uncomfortable” Truisms
October 11, 2011
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Rob Arnott of PIMCO and Research Affiliates says that he expects developed world growth to significantly lag emerging market growth in the coming years — and says investors should take heed of that when investing. “GDP growth in the developed world faces headwinds from the costs associated with a rising debt burden, from the inevitable [...]
Read moreArnott on Why the Valuation Picture Is Troubling
September 16, 2011
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Interest rates and inflation have a much greater role in stock market valuations than you might think, and that means the stock market is on a “very dangerous” path, according to Rob Arnott. In an article for Morningstar, Arnott, of Research Affiliates and PIMCO, looks at the relationship between stock market valuation levels, interest rates, [...]
Read moreArnott on the Three D Hurricane, and The Three Pillars
August 8, 2011
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In the latest installment of Forbes’ Intelligent Investing, indexing guru Rob Arnott talks about the notion of fundamental indexing, and why he thinks it’s a much better system than typical market-cap-weighted indexing. Arnott also talks about the “3-D Hurricane” he sees hitting the U.S. — deficits, debt, and demographics — and why he thinks coming [...]
Read moreArnott: Look to Alternative Investments to Battle Inflation
June 29, 2011
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Saying that a “3-D Hurricane” — debt, deficits, and demographics — is lingering on the horizon for the U.S., Rob Arnott is taking several steps to prepare his portfolio for an inflationary climate. Arnott tells MarketWatch.com that the U.S. budget deficit is worse than many think, if you include entitlement program costs like Medicare, Medicaid, [...]
Read moreDemographics, Growth, and Stock & Bond Returns
May 13, 2011
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We recently highlighted data about the changing demographic make-up of the U.S., and the issue of what that means for the economy and stock market. Now, a new study shows that it may mean quite a bit — if history repeats itself. The study — “Demographic Changes, Financial Markets, and the Economy” — was performed [...]
Read moreThe Shiller P/E: In Need of a Revision?
April 11, 2011
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Does the “Shiller P/E” need a revamp? Some well-known strategists say yes, but others — including Yale Economist Robert Shiller himself — say no. While most strategists and publications use shorter-term earnings in developing price/earnings ratios, the Shiller P/E — also known as the 10-year P/E — compares a company’s average earnings over the past [...]
Read moreArnott: Now Not Time to Add Risk
February 18, 2011
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Research Affiliates’ Rob Arnott says the U.S.’s debt problems may not come home to roost in the short term, but they have him very concerned about the long term. “I think there’s a dislocation because the market is priced as if things are back to normal, and the simple fact is that they’re really not,” [...]
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