While many investors and commentators have raised fears of deflation recently, Rob Arnott of PIMCO and Research Affiliates still has his eye on potential inflation — and the opportunities it could present for investors. Arnott tells the Los Angeles Times that concerns about deflation could actually end up resulting in inflation. He thinks deflation fears [...]
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Tag Archives: Rob Arnott
Arnott: Investors Looking in Wrong Places for Sovereign Debt
August 31, 2010
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In his latest newsletter (click here for a PDF version), Research Affiliates’ Rob Arnott offers some interesting data on sovereign debt — data that indicates many investors are buying up bonds from the wrong countries. While investors have been pouring into U.S. Treasuries, Arnott says the U.S. — and many other developed countries — aren’t [...]
Read moreArnott Sees Slip Back into Recession — and then Big Opportunities
July 9, 2010
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Research Affiliates’ Rob Arnott says he thinks the expiration of the Bush Administration tax cuts at the end of this year will be the catalyst for another recession, and that in a year or two there will be “wonderful buying opportunities”. “I see all sorts of wonderful buying opportunities in the coming 12 to 24 [...]
Read moreArnott Sees Double-Dip — and Inflation — on Horizon
June 2, 2010
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In Consuelo Mack’s latest WealthTrack interview, Research Affiliates’ Rob Arnott discusses the “fundamental indexing” system he developed, and talks about where he sees the market going from here. Arnott, whose approach replaces the market-cap-weighting system with a system that weighs stocks based on sales, cash flow, dividends, and book value, says that the financial crisis [...]
Read moreArnott Sees “Another Tough Slog” in Coming Decade
February 25, 2010
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While many are predicting that the coming decade will feature some strong bounce-back gains for stocks after a poor 2000s, Rob Arnott of Research Affiliates says not to count on it. In a piece written with John West for IndexUniverse.com, Arnott says that the standard market-cap-weighted 60/40 stocks/bonds allocation “is likely to disappoint. Again. Net [...]
Read moreArnott on Why the 2000s Didn’t Have to Be a “Lost Decade”
January 25, 2010
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It’s no secret that the 2000s was a bad decade for the major U.S. stock market indices. The S&P 500 lost an average of 1% per year, some 3.6 percentage points worse than inflation, making it the worst decade for real returns on record. But in a recent paper, Research Affiliates’ Rob Arnott notes that [...]
Read moreArnott, Inker: Tough Finding Values in Stocks — or Bonds
December 14, 2009
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With a variety of assets — from stocks to bonds to gold — up significantly this year, two top asset allocation strategists are urging a conservative approach heading into 2010. “There isn’t that much to be excited about,” GMO’s Ben Inker tells the Associated Press. “It’s going to be tougher in 2010, because we’ve had [...]
Read moreArnott: Think Deep — Value, That Is
October 27, 2009
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Rob Arnott of Research Affiliates says that the recent rally has taken away from the attractiveness of many areas of the stock market, but he remains very high on beaten-down value stocks, which he says are still priced near Armageddon levels. “What we’re seeing is value priced as if Armageddon isn’t right next door; but [...]
Read moreThe Diversification Debate
August 28, 2009
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In addition to the question of how many stocks they should own, another similar question many investors ask is how many funds or asset classes they should own. In a recent Financial Times column, David Stevenson offers some interesting data on the topic, as well as some comments from top strategists. The “proper answer” to [...]
Read moreTop Strategists Talk “Buy-and-Hold”
July 28, 2009
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The Financial Times recently interviewed several top strategists about the viability of “buy-and-hold” investing, and found that some are espousing more of a “buy-cheap-and-hold” approach. “In a challenge to the received wisdom of holding stock market investments for 20 years or more, to smooth out short-term volatility, some suggest that measures of cheapness can be [...]
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