INSIGHT
Newsletters & Recordings
The Great Inflation Awakening
2/26/2021 - On inflation
2Q20 Review
8/4/2020
Pendulums
7/31/2020 - Market Anomalies, Mean Reversion & Value vs Growth
Buybacks Are Dead; Long Live Stock Buybacks
5/22/2020 - On stock repurchases
The Rocky Road Rally
5/5/2020 - Is the stock market "off to the races" again?
The Suspense in "Suspend"
4/9/2020 - On the dividend cuts so far
The Rules of Panic Versus Calculation
3/23/2020 - Have the rules in the market changed?
Silver Linings in the Midst of Distress
3/9/2020 - On the impact of COVID-19
Reflections on SKBA's 30th Anniversary
Thirty years is a long time to maintain a consistent investment discipline; yet here we are, celebrating SKBA's 30th anniversary. It was back in 1989 that we received approval by the SEC as an independent investment management company. Hurrah!
Will the Rising Tide of Tax Reform Lift All Economic Boats?
Perspectives on the Tax Cuts and Jobs Act and what it means for markets.
How Risky Is Your Smart Beta?
Smart Beta, as a factor-based ETF product, has gained popularity as an alternative between active management and index investing using historically-based quantitative techniques. While its merits have been widely debated, SKBA, as an active manager, offers its insights as to some of the risks that may arise from the use of Smart Beta that may not have been well considered by the investors in such quantitative techniques.
Fed Mania on ZIRP
Why we are still in a zero interest rate policy environment and what the fed might be paying attention to going forward.
Should Corporate Dividends Matter to Investors? Part II
Under what circumstances and market environments do dividend-paying companies offer desirable investment returns? A wide-ranging discussion of when dividend-paying companies perform well and when they perform poorly.
Should Corporate Dividends Matter to Investors? Part I
Many studies of U.S. stock returns suggest that over the long term, more than 50% of total return comes from the receipt of dividend payments and the growth in these payments. So the short answer to the title's question is Yes. From SKBA's perspective, this observation nevertheless begs these further questions:
  1. Why do companies establish, sustain and grow their dividend payments?
  2. What do dividend payments imply about a company's earning power compared to its reported EPS?
  3. What causes a company to cut its dividend?
Tips on TIPS
In the Opinion section of the Wall Street Journal on August 22, 2011, authors Jeremy Siegel and Jeremy Schwartz wrote a piece entitled, The Bond Bubble and the Case for Stocks. While I have no argument with the idea that dividend-paying stocks are attractive at today's valuations compared to nominal Treasury bonds, I believe the discussion that the TIPS (Treasury Inflation Protection Securities) market makes no sense to us... reaches incorrect conclusions. The reason TIPS are trading where they are is not reflective of the general Treasury bond bubble.







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Last updated: June 03, 2015
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