Money Clip

Blog by Matthias Paul Kuhlmey


Matthias Paul Kuhlmey is a Managing Director & Partner at HighTower Advisors, where he serves as wealth manager to High Net Worth and Ultra-High Net Worth Individuals, Family Offices, and Institutions.

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  • The Price You Pay

    Thursday, March 26, 2015

    Posted by: Matthias Paul Kuhlmey

    http://wealthmanagement.com/viewpoints/price-you-pay

    What really constitutes a return? If I want to be a geek about exploring this question, PhDs Richard Grinold and Ronald Kahn offered a more-than-exemplary answer in their 1999 publication, Active Portfolio Management: A Quantitative Approach for Producing Superior Returns and Controlling Risk. In near-Einstein fashion, these two masterminds broke down the complexity of this topic into one simple formula, referred to as “The Fundamental Law of Active Management”: Investment Return = Skill * Opportunity.

    To continue reading, please click here for the full article.

  • Defying Gravity

    Thursday, March 19, 2015

    Posted by: Matthias Paul Kuhlmey

    http://wealthmanagement.com/viewpoints/defying-gravity

    Over the course of my career, it has become clear to me that many market participants, even the most passionate ones, have little consideration for (or understanding of)  how to assess the currency exposure of their investments. This aspect, however, deserves critical consideration, as research has clearly established that currencies have a beta and, if incorporated in traditional portfolios, cannot only enhance returns but also optimize risk/reward characteristics of a given portfolio.

    To continue reading, please click here for the full article.

  • Yield to Temptation

    Monday, March 16, 2015

    Posted by: Matthias Paul Kuhlmey

    As featured at WealthManagement.com

    http://wealthmanagement.com/viewpoints/yield-temptation

    Duh! It should not come as a surprise that, after years of low rates, the common “advice section” on where to find attractive income opportunities reads like an all-encompassing horoscope: high-dividend stocks, MLPs, junk bonds, REITs, etc. The reasonable question to ask, then, is whether those “usual suspects” have become way too mainstream (you already know the answer). With two darlings now in the danger zone from a technical perspective, namely the U.S. 10-year and utilities (stocks), both very much related to the levels of rates and their anticipated future direction, our focus on yield should take a different angle altogether.

    To continue reading, please click here for the full article.

     

  • Sympathy is for Corporate Wimps

    Wednesday, March 11, 2015

    Posted by: Matthias Paul Kuhlmey

    As featured at HuffingtonPost.com

    http://www.huffingtonpost.com/matthias-paul-kuhlmey/sympathy-is-for-corporate-wimps_b_6803014.html

    It is easy to make a snap judgment regarding the title of this blog, but stay with me — I think I may be on to something. A staggering $140 billion was spent on corporate training initiatives in the U.S. in 2013, with about $1 billion for top executive development; in other words, money spent on the very corporate rank that is instrumental in leading companies to higher standards, which typically means “more profits.” Even though I concluded in a previous post, “Great Company Required,” that happy employees make better companies, and better companies make more money, it is still a difficult concept to grasp, and, more importantly, hard to effectively implement and measure as a part of corporate culture.

    To continue reading, please click here for the full article.

    Also this morning, I made an appearance on Chuck Jaffe’s Moneylife Show to discuss how emerging market debt can be an attractive investment for market participants searching for yield opportunities in the current market environment.

    Click here to listen to the full segment.

  • A Socialist’s Musings

    Thursday, March 5, 2015

    Posted by: Matthias Paul Kuhlmey

    As featured at WealthManagement.com

    http://wealthmanagement.com/viewpoints/socialist-s-musings

    Having a blog or publishing commentary is quite interesting, especially when the feedback comes in. Opinions are wide-ranging, but there is one in particular that has been sticking with me for some time now: apparently, I am a “socialist.” Why, you may wonder? Because I worry — and based on those worries I have written extensively about the uneven economic recovery, especially after the Financial Crisis of 2008/2009, the related uneven distribution of wealth, a questionable labor market, and education as the very foundation of future talent entering the workforce. Let’s consider this blog post as being without a specific investment opinion, but instead simply a musing about the state of the U.S. economy. For more concrete financial guidance, skip ahead and read our HighTower GIS 360 publication: “From Wall Street to Main Street,” a very worthwhile and engaging guide for 2015.

    To continue reading, please click here for the full article.

  • Outlook 360: From Wall Street to Main Street

    Wednesday, March 4, 2015

    Posted by: Matthias Paul Kuhlmey

    “Only a distant echo remains of the once crippling Global Financial Crisis of 2008. In fact, quite to the contrary, investors in U.S. financial, and other markets, have been able to reap generous rewards over the past years; some paired with heartache and a required appetite for volatility, but, overall, nothing but a stellar outcome. As each year goes by, I contemplate the seemingly incongruous disconnect between the real world and our investment industry.”

    Our most recent economic outlook features a culmination of financial market opinions from our finest independent research providers and offers insight into HighTower’s “Weight Of An Ox” asset allocation survey, a web-based crowd-sourcing mechanism that gathers the ideas of some of the industry’s brightest minds.

    Please click on the following link for the full outlook: From Wall Street to Main Street

  • Of Rigged Markets and Profitable Emotions

    Friday, February 27, 2015

    Posted by: Matthias Paul Kuhlmey

    As featured at WealthManagement.com

    http://wealthmanagement.com/viewpoints/rigged-markets-and-profitable-emotions

    “Does the retail investor really stand a chance to make money in the long run?” was a question posed recently by an industry friend. Before drawing any conclusions, let’s decide who would be on the other side of the retail crowd. Much has been reported about high frequency trading (HFT) firms, at least some of which was based on a public debate triggered by Michael Lewis’s latest book, “Flash Boys,” suggesting that the entire U.S. stock market is “rigged,” leaving so-defined “black box traders” in a far better position to capture market returns than us “regular Joes.” I cannot intelligently comment on Lewis’s point, as it is a complicated matter, which, quite openly, I do not know enough about. My own findings are somewhat peculiar, but lead me in a different direction altogether.

    To continue reading, please click here for the full article.