David I. Templeton - Seeking Alpha 'David I. Templeton' Tag RSS Syndication from SeekingAlpha.com SeekingAlpha.com http://seekingalpha.com/author/david-i-templeton Carry Trade Risk: Overstated? http://seekingalpha.com/article/174738-carry-trade-risk-overstated?source=feed 174738 In early November Nouriel Roubini wrote in the Financial Times that the Mother of all carry trades faces an inevitable bust. Roubini states the rise in risky asset values: equities, high yield bonds, etc. has been driven by the carry trade with the U.S. Dollar.

Roubini states, so what is behind this massive rally? Certainly it has been helped by a wave of liquidity from near-zero interest rates and quantitative easing. But a more important factor fueling this asset bubble is the weakness of the US dollar, driven by the mother of all carry trades. The US dollar has become the major funding currency of carry trades as the Fed has kept interest rates on hold and is expected to do so for a long time. Investors who are shorting the US dollar to buy on a highly leveraged basis higher-yielding assets and other global assets are not just borrowing at zero interest rates in dollar terms; they are borrowing at very negative interest rates – as low as negative 10 or 20 per cent annualised – as the fall in the US dollar leads to massive capital gains on short dollar positions.

David Rosenberg, Chief Economist & Strategist for Gluskin Shelf, recently weighed in on the carry trade (.pdf) as well.

The U.S. dollar has become a huge ‘carry trade’ vehicle for all risky assets. Historically, there is no correlation at all between the DXY index (the U.S. dollar index) and the S&P 500. In the past eight months, that correlation is 90%. Ditto for credit spreads — zero correlation from 1995 to 2008, but now it has surged to 90% since April. There was historically a 70% inverse correlation between the U.S. dollar and emerging markets, such as the Brazilian Bovespa, and that correlation has also increased to 90% since the spring. Even the VIX index, which historically has had no better than a 20% correlation with the U.S. dollar, has now sent that correlation surge to 90%. Amazing. The inverse correlations between the U.S. dollar and gold and the U.S. dollar and commodities were always strong, but these too have strengthened and now stand at over 90%.

]]> Mon, 23 Nov 2009 02:55:00 -0500 David I. Templeton David I. Templeton submits:
In early November Nouriel Roubini wrote in the Financial Times that the Mother of all carry trades faces an inevitable bust. Roubini states the rise in risky asset values: equities, high yield bonds, etc. has been driven by the carry trade with the U.S. Dollar.

Roubini states, so what is behind this massive rally? Certainly it has been helped by a wave of liquidity from near-zero interest rates and quantitative easing. But a more important factor fueling this asset bubble is the weakness of the US dollar, driven by the mother of all carry trades. The US dollar has become the major funding currency of carry trades as the Fed has kept interest rates on hold and is expected to do so for a long time. Investors who are shorting the US dollar to buy on a highly leveraged basis higher-yielding assets and other global assets are not just borrowing at zero interest rates in dollar terms; they are borrowing at very negative interest rates – as low as negative 10 or 20 per cent annualised – as the fall in the US dollar leads to massive capital gains on short dollar positions.

David Rosenberg, Chief Economist & Strategist for Gluskin Shelf, recently weighed in on the carry trade (.pdf) as well.

The U.S. dollar has become a huge ‘carry trade’ vehicle for all risky assets. Historically, there is no correlation at all between the DXY index (the U.S. dollar index) and the S&P 500. In the past eight months, that correlation is 90%. Ditto for credit spreads — zero correlation from 1995 to 2008, but now it has surged to 90% since April. There was historically a 70% inverse correlation between the U.S. dollar and emerging markets, such as the Brazilian Bovespa, and that correlation has also increased to 90% since the spring. Even the VIX index, which historically has had no better than a 20% correlation with the U.S. dollar, has now sent that correlation surge to 90%. Amazing. The inverse correlations between the U.S. dollar and gold and the U.S. dollar and commodities were always strong, but these too have strengthened and now stand at over 90%.


Complete Story »]]> UDN UUP David I. Templeton Robert Kleinschmidt's Case for a Slower Growing U.S. Economy http://seekingalpha.com/article/174736-robert-kleinschmidt-s-case-for-a-slower-growing-u-s-economy?source=feed 174736 Much has been made recently about the U.S. Dollar and its use in the carry trade. Consuelo Mack of WealthTrack recently interviewed Robert Kleinschmidt, President and Chief Investment Officer of Tocqueville Asset Management and portfolio manager of the Tocqueville Fund. In the below video, Kleinschmidt discusses where his contrarian investment philosophy is leading him now and why investors should be concerned about U.S. government debt and the future of the dollar.

Kleinschmidt believes the government's action of bailing out AIG, TARP etc., actually contributed to and worsened the global financial crisis. He also believes the U.S.'s actions have jeopardized the dollar's status as the world's reserve currency. Lastly, Kleinschmidt believes the U.S. economy will look more like an European one where growth is in the 1-2% range and results in unemployment remaining in the 10% range for the foreseeable future.]]> Mon, 23 Nov 2009 02:47:16 -0500 David I. Templeton David I. Templeton submits:
Much has been made recently about the U.S. Dollar and its use in the carry trade. Consuelo Mack of WealthTrack recently interviewed Robert Kleinschmidt, President and Chief Investment Officer of Tocqueville Asset Management and portfolio manager of the Tocqueville Fund. In the below video, Kleinschmidt discusses where his contrarian investment philosophy is leading him now and why investors should be concerned about U.S. government debt and the future of the dollar.

Kleinschmidt believes the government's action of bailing out AIG, TARP etc., actually contributed to and worsened the global financial crisis. He also believes the U.S.'s actions have jeopardized the dollar's status as the world's reserve currency. Lastly, Kleinschmidt believes the U.S. economy will look more like an European one where growth is in the 1-2% range and results in unemployment remaining in the 10% range for the foreseeable future.

Complete Story »]]> UDN UUP AIG David I. Templeton Sysco Raises Dividend 4.1% http://seekingalpha.com/article/174018-sysco-raises-dividend-4-1?source=feed 174018 Sysco Corp. (SYY) announced the company is increasing its fiscal 3rd quarter 2010 dividend by 4.17% to 25 cents per share. This compares to 24 cents per share paid in the same quarter last year. The company has increased its dividend in each of the 40 years it has been trading as a public company.

  • The estimated payout ratio will equal 48% based on 6/2010 estimated earnings of $1.89. This compares to the 5-year average payout ratio of approximately 53%.
  • The company carries an S&P Earnings & Dividend Quality Ranking of A+.


Author's Disclosure: Long SYY

]]> Wed, 18 Nov 2009 08:31:37 -0500 David I. Templeton David I. Templeton submits:
Sysco Corp. (SYY) announced the company is increasing its fiscal 3rd quarter 2010 dividend by 4.17% to 25 cents per share. This compares to 24 cents per share paid in the same quarter last year. The company has increased its dividend in each of the 40 years it has been trading as a public company.

  • The estimated payout ratio will equal 48% based on 6/2010 estimated earnings of $1.89. This compares to the 5-year average payout ratio of approximately 53%.
  • The company carries an S&P Earnings & Dividend Quality Ranking of A+.


Author's Disclosure: Long SYY


Complete Story »]]> SYY David I. Templeton Intel, Lancaster Colony Increase Dividends http://seekingalpha.com/article/174017-intel-lancaster-colony-increase-dividends?source=feed 174017 Catching up after some dividend increases this week.

Intel (INTC)

On Monday, Intel Corp. announced the company is increasing its 1st quarter 2010 dividend by 12.5% to 15.75 cents per share. This is Intel's first quarterly dividend increase since the second quarter of 2008 when the company increased the quarterly dividend to 14 cents per share.

  • The estimated payout ratio will equal 43% based on 12/2010 estimated earnings of $1.46. This compares to the 5-year average payout ratio of approximately 36%.
  • The company carries an S&P Earnings & Dividend Quality Ranking of B+.

]]> Wed, 18 Nov 2009 08:29:29 -0500 David I. Templeton David I. Templeton submits:
Catching up after some dividend increases this week.

Intel (INTC)

On Monday, Intel Corp. announced the company is increasing its 1st quarter 2010 dividend by 12.5% to 15.75 cents per share. This is Intel's first quarterly dividend increase since the second quarter of 2008 when the company increased the quarterly dividend to 14 cents per share.

  • The estimated payout ratio will equal 43% based on 12/2010 estimated earnings of $1.46. This compares to the 5-year average payout ratio of approximately 36%.
  • The company carries an S&P Earnings & Dividend Quality Ranking of B+.


Complete Story »]]> INTC LANC David I. Templeton Will the 'Smart Money' or the 'Dumb Money' Be Right This Time? http://seekingalpha.com/article/173456-will-the-smart-money-or-the-dumb-money-be-right-this-time?source=feed 173456 This past week's American Association of Individual Investors bullish sentiment reading saw an increase to 38.6% versus last week's reading of 22.2%. The long term average of the bullish sentiment level is 39% so the reading remains below this longer term trend. The 8-period moving average of the reading declined to 37.5% from 37.9% last week and is the fourth straight week the 8-period average has declined. The bull/bear spread came in at a flat 0%.

For contrarians, individual investors seem to remain cautious about the future direction of the market. Guy Lerner of the Technical Take website notes the so called "smart money" indicator has turned bearish. Guy notes the "smart money" tends to get the trends right, while the "dumb money" does not. We will see. If we could break resistance of 1,100 on the S&P 500 Index, a further move higher in the market through year end is possible.

]]> Mon, 16 Nov 2009 01:30:37 -0500 David I. Templeton David I. Templeton submits:

This past week's American Association of Individual Investors bullish sentiment reading saw an increase to 38.6% versus last week's reading of 22.2%. The long term average of the bullish sentiment level is 39% so the reading remains below this longer term trend. The 8-period moving average of the reading declined to 37.5% from 37.9% last week and is the fourth straight week the 8-period average has declined. The bull/bear spread came in at a flat 0%.

For contrarians, individual investors seem to remain cautious about the future direction of the market. Guy Lerner of the Technical Take website notes the so called "smart money" indicator has turned bearish. Guy notes the "smart money" tends to get the trends right, while the "dumb money" does not. We will see. If we could break resistance of 1,100 on the S&P 500 Index, a further move higher in the market through year end is possible.


Complete Story »]]> David I. Templeton Government Spending Binge Weighing on Markets and Consumers http://seekingalpha.com/article/173364-government-spending-binge-weighing-on-markets-and-consumers?source=feed 173364 As I noted in an earlier post on March 9th of this year, consumer confidence tends to lag the stock market by about 2-3 months. The Conference Board's consumer confidence index reported its second monthly decline at the end of October. Since the confidence index tends to lag the market by several months, it is not surprising to see this confidence drop in October. October was a down month for the S&P 500 Index with the index closing at 1,036 versus September's close of 1,057.

Click to enlarge:

]]> Sun, 15 Nov 2009 05:05:50 -0500 David I. Templeton David I. Templeton submits:

As I noted in an earlier post on March 9th of this year, consumer confidence tends to lag the stock market by about 2-3 months. The Conference Board's consumer confidence index reported its second monthly decline at the end of October. Since the confidence index tends to lag the market by several months, it is not surprising to see this confidence drop in October. October was a down month for the S&P 500 Index with the index closing at 1,036 versus September's close of 1,057.

Click to enlarge:


Complete Story »]]> David I. Templeton Sidelined Cash: Fuel for the Fire http://seekingalpha.com/article/172656-sidelined-cash-fuel-for-the-fire?source=feed 172656 Investor cash on the sidelines could serve as a source of funds for additional stock purchases and a continued move higher in the market averages. As the below chart shows, cash levels remain higher than the 27% reached during the 2001-2002 recession and far above the 16% historical average. (Click to enlarge)

From Disciplined Approach to Investing

If one includes ultra short and short term bond fund investments, potential liquidity that could find its way into stocks is significant. In short, investors do not believe this rally is sustainable and that is music to a contrarian's ears.

]]> Wed, 11 Nov 2009 02:17:48 -0500 David I. Templeton David I. Templeton submits:

Investor cash on the sidelines could serve as a source of funds for additional stock purchases and a continued move higher in the market averages. As the below chart shows, cash levels remain higher than the 27% reached during the 2001-2002 recession and far above the 16% historical average. (Click to enlarge)

From Disciplined Approach to Investing

If one includes ultra short and short term bond fund investments, potential liquidity that could find its way into stocks is significant. In short, investors do not believe this rally is sustainable and that is music to a contrarian's ears.


Complete Story »]]> David I. Templeton Relative Valuations of Small Caps Look Stretched http://seekingalpha.com/article/171775-relative-valuations-of-small-caps-look-stretched?source=feed 171775 Historically, small cap stock returns coming out of a bear market have outperformed large cap stocks. The performance of small caps relative to large caps since the March 9th lows has been no different. The small cap outperformance tends to run for a period of around two years.
(click to enlarge)

small cap performance performance versus large cap chart Fall 2009

However, this might not be the case in this market cycle. The difference this time is the relative valuations of small caps look the most stretched going back to 1983. Given the valuation gap between small and large, it appears large caps might be the better asset class at this point in the cycle.

]]> Fri, 06 Nov 2009 05:46:09 -0500 David I. Templeton David I. Templeton submits:
Historically, small cap stock returns coming out of a bear market have outperformed large cap stocks. The performance of small caps relative to large caps since the March 9th lows has been no different. The small cap outperformance tends to run for a period of around two years.
(click to enlarge)

small cap performance performance versus large cap chart Fall 2009

However, this might not be the case in this market cycle. The difference this time is the relative valuations of small caps look the most stretched going back to 1983. Given the valuation gap between small and large, it appears large caps might be the better asset class at this point in the cycle.


Complete Story »]]> BES DSC David I. Templeton How Are the S&P's Dividend Aristocrats Performing? http://seekingalpha.com/article/171363-how-are-the-s-p-s-dividend-aristocrats-performing?source=feed 171363 It seems it has been some time since I updated the performance of Standard & Poor's Dividend Aristocrats. Year to date through November 4, 2009, the Aristocrats have generated a better return than the Dow Jones Industrial Index, 12.2% versus 11.7%, respectively. However, the Aristocrats performance has trailed the return on the S & P 500 Index's return of 15.9%.

In the below table, I have shaded the rows for those companies that have cut their dividend this year.

]]> Thu, 05 Nov 2009 00:57:28 -0500 David I. Templeton David I. Templeton submits:

It seems it has been some time since I updated the performance of Standard & Poor's Dividend Aristocrats. Year to date through November 4, 2009, the Aristocrats have generated a better return than the Dow Jones Industrial Index, 12.2% versus 11.7%, respectively. However, the Aristocrats performance has trailed the return on the S & P 500 Index's return of 15.9%.

In the below table, I have shaded the rows for those companies that have cut their dividend this year.


Complete Story »]]> WAG APD SWK TGT PPG JCI VFC LEG GCI LM MMM CTL ROH SIAL MHP STR KMB KO DOV BMS AVY SVU ADM PEP FDO EMR MTB ED CLX PGR ADP STT BDX JNJ PBI MCD PFE CB ABT PG SHW USB CINF GE AFL BCR LOW WMT BBT XOM LLY TEG David I. Templeton Easy Money Ends as Higher Quality Dividend Growers Outperform http://seekingalpha.com/article/170757-easy-money-ends-as-higher-quality-dividend-growers-outperform?source=feed 170757 October was a down month for the S&P 500 Index seeing the index decline 1.87%. During the month, the dividend payers finally did outperform the non-payers, -2.3% versus -6.2%, respectively. This is the first time payers have outperformed the non-payers this year. On a year to date and 12-month time frame, the non-payers continue to maintain a significantly higher return than the dividend payers.

Click to enlarge:

]]> Tue, 03 Nov 2009 05:19:14 -0500 David I. Templeton David I. Templeton submits:

October was a down month for the S&P 500 Index seeing the index decline 1.87%. During the month, the dividend payers finally did outperform the non-payers, -2.3% versus -6.2%, respectively. This is the first time payers have outperformed the non-payers this year. On a year to date and 12-month time frame, the non-payers continue to maintain a significantly higher return than the dividend payers.

Click to enlarge:


Complete Story »]]> David I. Templeton Markets Look Short Term Oversold http://seekingalpha.com/article/170440-markets-look-short-term-oversold?source=feed 170440 In looking at the percentage of S&P 500 Index stocks trading above their 50 day moving average, the market looks to be near a short term oversold position.

Click to enlarge:

]]> Mon, 02 Nov 2009 01:30:43 -0500 David I. Templeton David I. Templeton submits:

In looking at the percentage of S&P 500 Index stocks trading above their 50 day moving average, the market looks to be near a short term oversold position.

Click to enlarge:


Complete Story »]]> SPX David I. Templeton A Low Price-to-Book Stock: Highway Holdings http://seekingalpha.com/article/170439-a-low-price-to-book-stock-highway-holdings?source=feed 170439 One of the American Association of Individual Investors' better performing stock screens over the long run is the Piotroski Price to Book Screen.


Piotroski stock screen long term performance chartOf late the number of companies passing the screen's criteria has been slim to none. The criteria of the screen are:

]]> Mon, 02 Nov 2009 01:24:01 -0500 David I. Templeton David I. Templeton submits:

One of the American Association of Individual Investors' better performing stock screens over the long run is the Piotroski Price to Book Screen.


Piotroski stock screen long term performance chartOf late the number of companies passing the screen's criteria has been slim to none. The criteria of the screen are:


Complete Story »]]> HIHO David I. Templeton James Grant on WealthTrack: Surprisingly Strong Recovery Ahead http://seekingalpha.com/article/170438-james-grant-on-wealthtrack-surprisingly-strong-recovery-ahead?source=feed 170438 Consuelo Mack of WealthTrack interviews James Grant, Editor of Grant's Interest Rate Observer. By nature, James Grant is a glass is half empty type of person, yet he believes the economy will surprise to the upside and be surprisingly strong.

In the interview, Grant cites a quote from English economist, A.C. Pigou,

]]> Mon, 02 Nov 2009 01:09:05 -0500 David I. Templeton David I. Templeton submits:

Consuelo Mack of WealthTrack interviews James Grant, Editor of Grant's Interest Rate Observer. By nature, James Grant is a glass is half empty type of person, yet he believes the economy will surprise to the upside and be surprisingly strong.

In the interview, Grant cites a quote from English economist, A.C. Pigou,


Complete Story »]]> David I. Templeton Stryker Ups Its Dividend by 50% http://seekingalpha.com/article/170309-stryker-ups-its-dividend-by-50?source=feed 170309 On Friday Stryker Corp. (SYK) announced the company's dividend payment would be transitioned to a quarterly dividend from an annual one. In order to accommodate this change, SYK will pay a 10 cent fourth quarter dividend for 2009.

  • This will bring total 2009 dividends to 50 cents per share versus 33 cents per share paid in 2008. This represents a 51% increase in the dividend on a year over year basis.

]]> Sun, 01 Nov 2009 02:32:08 -0500 David I. Templeton David I. Templeton submits:

On Friday Stryker Corp. (SYK) announced the company's dividend payment would be transitioned to a quarterly dividend from an annual one. In order to accommodate this change, SYK will pay a 10 cent fourth quarter dividend for 2009.

  • This will bring total 2009 dividends to 50 cents per share versus 33 cents per share paid in 2008. This represents a 51% increase in the dividend on a year over year basis.


Complete Story »]]> SYK David I. Templeton Bullish Investor Sentiment at Lowest Level Since July http://seekingalpha.com/article/170100-bullish-investor-sentiment-at-lowest-level-since-july?source=feed 170100 This week's release of bullish investor sentiment by the American Association of Individual Investors shows bullish sentiment fell to 33.65%. This is the lowest level for the bullishness reading since the bullishness reading was reported at 28.68% for the week of July 16, 2009. The eight period moving average fell slightly to 39.83% versus the prior week's average of 40.37%.

Individual investors do not appear to have reached the overly bullish state as of yet.

]]> Fri, 30 Oct 2009 05:29:05 -0400 David I. Templeton David I. Templeton submits:
This week's release of bullish investor sentiment by the American Association of Individual Investors shows bullish sentiment fell to 33.65%. This is the lowest level for the bullishness reading since the bullishness reading was reported at 28.68% for the week of July 16, 2009. The eight period moving average fell slightly to 39.83% versus the prior week's average of 40.37%.

Individual investors do not appear to have reached the overly bullish state as of yet.


Complete Story »]]> SPY David I. Templeton Consumer Staple Co. Supervalu Cuts Dividend http://seekingalpha.com/article/168972-consumer-staple-co-supervalu-cuts-dividend?source=feed 168972 Last week Dividend Aristocrat Supervalu (SVU) cut the company's dividend by 50%. SVU becomes the first consumer staples stock to reduce its dividend.

  • The new quarterly dividend is reduced to 8.75% from 17.5%.
  • The company's second quarter earnings came in at 35 cents per share versus 61 cents per share in the same quarter last year.
  • Full year earnings for February 2010 are estimated to come in at $1.94 and February 2011 earnings are projected at $2.01.
(click to enlarge)


Suppervalu dividend analysis table
Supervalu stock chart

]]> Tue, 27 Oct 2009 01:27:48 -0400 David I. Templeton David I. Templeton submits:

Last week Dividend Aristocrat Supervalu (SVU) cut the company's dividend by 50%. SVU becomes the first consumer staples stock to reduce its dividend.

  • The new quarterly dividend is reduced to 8.75% from 17.5%.
  • The company's second quarter earnings came in at 35 cents per share versus 61 cents per share in the same quarter last year.
  • Full year earnings for February 2010 are estimated to come in at $1.94 and February 2011 earnings are projected at $2.01.
(click to enlarge)


Suppervalu dividend analysis table
Supervalu stock chart


Complete Story »]]> SVU David I. Templeton Lessons from a Crisis: Stay the Course http://seekingalpha.com/article/168726-lessons-from-a-crisis-stay-the-course?source=feed 168726 Investors who stuck with equity investments (S&P 500 Index) in October 2008 and through the March 2009 sell off would now be up 9% from October 2008 through August 2009. Many investors liquidated equity investments in October and again in March.

  • Investors withdrew $70 billion from the stock market in October 2008 and another $50 billion in the February/March 2009 period.
  • As of October 16, 2009, one year after the peak in liquidations, investors who remained in the stock market had fared better than those who exited at the peak of the crisis and stayed on the sidelines.

]]> Mon, 26 Oct 2009 02:44:19 -0400 David I. Templeton David I. Templeton submits:

Investors who stuck with equity investments (S&P 500 Index) in October 2008 and through the March 2009 sell off would now be up 9% from October 2008 through August 2009. Many investors liquidated equity investments in October and again in March.

  • Investors withdrew $70 billion from the stock market in October 2008 and another $50 billion in the February/March 2009 period.
  • As of October 16, 2009, one year after the peak in liquidations, investors who remained in the stock market had fared better than those who exited at the peak of the crisis and stayed on the sidelines.


Complete Story »]]> David I. Templeton Anecdotal Evidence of Renewed Economic Activity http://seekingalpha.com/article/168626-anecdotal-evidence-of-renewed-economic-activity?source=feed 168626 As readers may have noticed from the limited number of posts to my blog this week, I was away from the computer due to some out of town travel. I traveled by car from Ohio to Florida on I-75. Along with my travel companion, we both commented on the number of semi trucks that were traveling the highway. The parking lots at a couple of truck stops we passed were packed full with semis. Even several of the rest areas were packed with semis. I am guessing all these trucks were not traveling with empty loads.

At a minimum, I think the economy is experiencing some inventory restocking activity and possibly a pick up in consumer demand.

]]> Sun, 25 Oct 2009 04:51:00 -0400 David I. Templeton David I. Templeton submits:

As readers may have noticed from the limited number of posts to my blog this week, I was away from the computer due to some out of town travel. I traveled by car from Ohio to Florida on I-75. Along with my travel companion, we both commented on the number of semi trucks that were traveling the highway. The parking lots at a couple of truck stops we passed were packed full with semis. Even several of the rest areas were packed with semis. I am guessing all these trucks were not traveling with empty loads.

At a minimum, I think the economy is experiencing some inventory restocking activity and possibly a pick up in consumer demand.


Complete Story »]]> David I. Templeton Congress Still Looking at a Stock Trading Tax http://seekingalpha.com/article/168625-congress-still-looking-at-a-stock-trading-tax?source=feed 168625 As I have noted in several earlier posts, Congress is looking to place a tax on stock trades. They have not given up on this trading tax as noted by the below screen shot from my Site Meter account.

(Click to enlarge)


taxing stock trades

]]> Sun, 25 Oct 2009 04:48:53 -0400 David I. Templeton David I. Templeton submits:

As I have noted in several earlier posts, Congress is looking to place a tax on stock trades. They have not given up on this trading tax as noted by the below screen shot from my Site Meter account.

(Click to enlarge)


taxing stock trades


Complete Story »]]> David I. Templeton As Correlations Increase, Portfolio-Diversifying Risks Mount http://seekingalpha.com/article/167067-as-correlations-increase-portfolio-diversifying-risks-mount?source=feed 167067 Investors are often advised to spread their investments across differing asset classes because of the lower correlation of these other asset classes. Unfortunately, the correlation of many of these other asset classes has continued to increase.

I have discussed this issue of higher correlation in earlier posts:

]]> Sun, 18 Oct 2009 03:00:18 -0400 David I. Templeton David I. Templeton submits:

Investors are often advised to spread their investments across differing asset classes because of the lower correlation of these other asset classes. Unfortunately, the correlation of many of these other asset classes has continued to increase.

I have discussed this issue of higher correlation in earlier posts:


Complete Story »]]> David I. Templeton