Biltmore Blog

Biltmore Blog

5 Luxury Destinations Global Events Made Unexpectedly Cheap

Finding undervalued opportunities isn’t just for investing. Keeping an eye on global economic trends can uncover hidden gems, allowing you to travel for a fraction of the cost. In many places around the world (including many luxury travel hot spots), global events have driven down prices, creating good opportunities for savvy travelers. For example, flying […]

Interest Rate Cuts

By D. Tyler Vernon The Fed cut interest rates this week by another 0.25% in efforts to bolster the economy. For many individuals, this means lower rates on their loans on such things as credit card debt, and other revolving lines of credit line home equity loans. For families looking to purchase a new car […]

Thoughts On Cannabis Investing

By Don Chambers One way to make a small fortune is to invest a large fortune in a risky and emerging industry such as the US cannabis industry. The emerging market for legal cannabis in the US is highly risky and will remain so for a long time. First there is the normal risk of […]

Don’t Let the Gold Bug Bite

By Don Chambers Gold, like any other commodity, is a terrible investment when held physically (rather than with derivatives) and held over a very-long time horizon. Returns on physical gold inventories are destined to have negative real rates of return (i.e., adjusted for inflation) over very long-term horizons especially when storage costs are included. When […]

Economists Wrong Again

by D. Tyler Vernon In 2018 the US economy experienced a series of interest rate increases. December of 2018 marked the worst December on record as measured by performance of equity markets partially due to concerns that the Federal reserve would continue to increase interest rates higher in 2019. At the end of 2018, the […]

Timing the Next Bear Equity Market

By Don Chambers In the year 1870 nobody could have guessed how economically successful America would be 150 years later. Who could have predicted that the vast majority of Americans there enjoy cars, electric lights, central heating and air conditioning, medical advances, TVs, cell phones, and, most impressive of all, instant wireless communication through the […]

Summer 2019 Newsletter

View/Download our Summer 2019 Newsletter by clicking on the thumbnail below

Embracing a Global Stock Market

U.S. stocks have significantly outperformed international stocks in recent years. And U.S.-based multinationals are major players in the world economy. Does that make international stock diversification unnecessary? Not at all. International stocks represent 44.9% of the global market – a figure too large to ignore. So by owning international stock investments, you can diversify your […]

The Times Are Changing

by Donald R. Chambers As our economy continues to transition from a manufacturing-dominated economy to an information economy, the list of the biggest corporations in the US continues to shift. In 1970 the twelve biggest U.S. firms according to Forbes included the following: 1970: 3 Auto Companies, 4 Oil Companies, 5 Non-Auto Manufacturers, 0 Financials […]

Asset Allocation

by Tyler Vernon, CEO The stock market experienced a quick and powerful correction during the 4th quarter of 2018, led by trade wars, and a hawkish Fed.  These concerns abated as we entered 2019 and the US stock market was able to recover, hitting the highs that we saw in 2018. Nevertheless, the correction of 2018 […]

Technically Speaking, a Lot of People are Fooling Themselves

By Don Chambers Two recent meetings on my calendar were in such stark comparison that they are worth noting. First, I met with a former colleague – a dear friend and a long time financial expert – who has been using very advanced software and a ton of computing power to find out if artificial […]

Opportunity Zone Investments

By Don Chambers The Federal government has created another giveaway program: opportunity zones. An opportunity zone is an economic region declared by state governments to be in need of external investment to stimulate real estate development and improvements. The Federal government encourages real estate investments in these zones by allowing tremendous tax advantages if 90% or more […]

Tax Day is Quickly Approaching

by Tyler Vernon April 15th is right around the corner and some investors are being surprised with tax bills.  Specifically, investors in equity mutual funds are seeing that not only were their portfolios down last year, but they have the added “pleasure” of paying capital gains taxes for gains that were realized inside their mutual […]

The Role of Bonds

by Justin Eccleston When yields decline on high-quality bonds, it’s common to look elsewhere to achieve higher yields. Oftentimes investors seek higher income by extending the duration or lowering the credit quality of their bond portfolio. Typically, lower quality bonds are more correlated to equity markets, especially during downturns. During these times the diversification benefits […]

Bogle Made Our Lives Better

by Dr. Don Chambers Much has been made recently of the role that John (Jack) Bogle played in pioneering the use of mutual funds that used passive indexation rather than active management. But I believe that his biggest legacy was in radically lowering the expense ratios of mutual funds. In the early 1980s I co-hosted […]

Concentrated Stock Holdings and Importance of Asset Allocation

by Justin Eccleston Concentrated stock holdings can be hazardous to your wealth. Clients who own concentrated stocks do so for a variety of reasons. Typically, those reasons better explain how they came to own concentrated stocks than to explain why they should continue to own them. The chart below illustrates over the last 15 years, […]

Are You Ready for Some Real Volatility?

by Don Chambers, January 2019 Stock markets exhibited substantial volatility in the end of 2018 (September through December). News reports described the declines as being historic by focusing on the large number of points that the Dow Jones fell on a few bad days: the Dow fell 500 points or more nine trading days in […]

Meeting Your Retirement Needs

by Tyler Vernon, CEO of Biltmore Capital Advisors Everyone wants to know if they are on track for retirement, and if/when they can afford to retire. One of the largest concerns for retirees today is a longer life expectancy.   Can one live and have enough financial resources to fund those years?  Will you run out […]

Reverse Dollar Cost Averaging and Sequence of Return Risks

Dollar Cost Averaging is pretty much the greatest thing since sliced bread when you are accumulating asset and saving for the future. It allows you to systematically invest month after month year after year removing the emotion for buying decisions and taking advantage of market downturns. For the average American it is best approach for […]

The Importance of Bonds in Your Investment Portfolio

Over the last 9 years the US stock market has made an incredible run. Stock investors have been rewarded greatly and have seen gains in their qualified and taxable portfolios. Multiple factors have contributed to this bull market. These include: Lower tax rates both corporate and individuals Historically low unemployment A strong economy and corporate […]

Trusting Cindy

by Tim Ralph As we meet with folks across America, we occasionally come across some unfortunate cases, where overly trusting people have been taken advantage of and their savings have been swindled. In this true story “Trusting Cindy,” we use fake names merely to provide a lesson to the reader. We recently visited with Cindy, age […]

Inflation: Causes and Cures

by Don Chambers From a consumer’s perspective, inflation is rising prices. From an economist’s perspective inflation is better viewed as when the value money declines. These perspectives provide difference inferences as to the causes and cures of inflation. In the first view inflation is blamed on producers for raising the prices of their goods (especially […]

The Importance of Financial Planning

by Tyler Vernon, CEO Everyone wants to know if they are on track for retirement, and if/when they can afford to retire. One of the largest concerns for retirees’ today is a longer life expectancy. Can one live and have enough financial resources to fund those years? Will you run out of money before you […]

Stock Market Corrections…Will Happen

by Justin Eccleston Markets cannot and will not go up forever. Part of earning a reward is taking on risk. History has shown us that over the long term, a diversified portfolio of stocks has achieved new highs as investors have been patient and held them through the bad times. When markets do become volatile, […]

Mid-Term Elections

by Timothy J. Ralph, Portfolio Manager With the November mid-term election right around the corner, I thought it would be fitting to discuss stock market (S&P 500) statistics during Presidential Cycle Year Midterms election. Chart 1: Mid-term year three-month seasonality tends to flip to positive from negative in August-October — this suggests becoming more bullish […]

Politics You Can Bet On

by Dr. Donald R. Chambers In the midst of all the rancor of politics, lovers of investments and finance, one can find an oasis of sanity and orderliness on election betting markets. These websites facilitate speculation on the outcomes of various elections. For example, people can use these markets to make small bets on which […]

October 2018 Stock Market Volatility

  The domestic markets have slightly pulled back from their high after a two day drop which we haven’t seen in months.  Observers of markets continue to see spectacular earnings growth which has been close to 20% for the year.  In fact, this growth has caused price to earnings (P/E) ratios to compress from high […]

Understanding and working with an Independent RIA

Financial advice comes in all shapes and sizes and from all sorts of industry professionals.  For those of you not in the financial industry, you probably aren’t aware of the momentum of advisors who are leaving the large Wall Street broker-dealers in search for a more independent firm to conduct their business.  Our founder, Tyler […]

Distinguishing Wealth Managers from Portfolio Cowboys

There are so-called investment managers, they manage portfolios in a wild and risky fashion that I term “portfolio cowboys.” In contrast, there are high quality investment professionals who manage portfolios carefully based on time-tested principles of long-term wealth management. These high-quality wealth managers must compete with portfolio cowboys for clients — and they often lose. […]

Part 6: Great Financial Advisors Do More than Manage Assets

There is much more to a healthy financial path through life than good asset management. Comprehensive financial advisory services should include managing liabilities (e.g., mortgage borrowing), optimal tax planning, estate planning, controlling for risks such as the financial consequences of premature death or outliving one’s wealth, and catastrophes. Sound decision making across the spectrum of […]

Part 5: Great Relationships are not Focused on Past Investment Performance

Superior past performance is easy to show: simply exclude the poor performance from the myriad of time spans and accounts for which returns are available. Investors who chase past performance by retaining advisors who tout exceptionally high returns are almost always disappointed. Exceptional performance almost always involves high levels of risk and/or luck – neither […]

Part 4: A Great Relationship Depends on the Advisor’s Platform

  The platform of the advisor in this context consists of the people and processes designed to meet the needs of its clients. Here are four key issues: What access do clients have to their financial information? Is the information available on paper and electronically? Does the information clearly portray the transactions and the current […]

Part 3: A Great Relationship Reaches Beyond the Advisor’s Salesperson

Very often, the first person that contacts a prospective client is a salesperson. Successful sales people tend to be very skilled at what they do. However, investors should determine exactly with whom they will most often be working should the investor become a client. In other words, people are often attracted to a firm through […]

Part 2: A Great Financial Advisor is a Fiduciary

Registered investment advisors are legally classified as fiduciaries – meaning they have a duty to their clients to serve the client’s best interests. Many other investment professionals – such as brokers – do not have a fiduciary duty and can place clients into products that offer higher profits to the broker and lower profits to […]

Part 1: Building a Great Relationship with a Financial Advisor

Investors should be thoughtful in their search for a financial advisor to assure that the relationship will serve their interests well. This series discusses six aspects of the relationship which should be considered before making such as decision. It begins with the “Method of compensation”. Often, investors spend too much time focused on the explicit […]

Investors fear ADT’s business could be hurt by Amazon’s foray into home security.

From bookstores to shopping malls to supermarkets, Amazon has roiled many a long-established business model. Now, the Amazon effect is shaking up an unlikely industry: home security systems. Shares in Boca Raton-based ADT, the security provider that went public in January, took a fall after Amazon in February announced its $1 billion acquisition of Ring, […]

Preparing For Armageddon

With major stock market indices soaring higher and higher, investors and pundits increasingly express fear that a horrible economic collapse is imminent. Predictions of the world coming to an end soon have brought society to a financial panic that can be avoided. In 2007, devastation traumatized investors as the financial markets and economy faltered. Followed […]

7 Common Trading Mistakes Part 6: Selling stocks after years of poor performance

Lots of people become discouraged with stocks in their portfolios that have under-performed for years. GE is a good example. As of late 2017 GE has under-performed the market for years. Emotional investors cannot resist selling a long-term underperformer when that stock that takes a quick upward jump. It feels bad holding these stocks. Every […]

7 Common Trading Mistakes Part 7: Believing that things are different this time

Remember the dot-com bubble of the late 1990’s? How about the real estate bubble leading up to 2007? I remember the enthusiasm about the “nifty fifty” back in the late1960s and early 1970s. The nifty-fifty were considered by some to he such high quality firms (e.g., Kodak, Sears, Polaroid) that there was virtually no limit […]

7 Common Trading Mistakes Part 5: Buying stocks on short-term dips

A common tax mistake is caused by anchoring. Anchoring is the idea that when a stock trades in a range such as $20-$25 per share for a few months, investors begin to think that $20-$25 is a reasonable future price for the stock. Therefore, lots of people cannot resist buying the stock on a dip […]

7 Common Trading Mistakes Part 4: Trading Cost Blindness

When trading in search of dollars, it is a mistake to ignore wasting even only a few cents on trading costs. Consider an investor who buys 500 shares of a stock at $10.00 each and then turns around and sells the stock for $10.10. The investor seems to pick up a $50 profit (500 shares […]

7 Common Trading Mistakes Part 3: Market Timing

The last decade has been an emotional cliff-hanger for most investors as they see the stock market soar to higher and higher levels – along with their increasing concern that the these large increases are going to be erased when the inevitable correction occurs. This attempt to “time” markets does not make much sense when […]

7 Common Trading Mistakes Part 2: Tax Blindness

Taxes are one of the biggest costs to investing. Ignoring income taxes when making investment decisions can be a big mistake. Being tax-smart is one of the surest ways to enhance long-term performance. Here’s a common mistake that investors make: they periodically buy and sell stocks based on opinions of the stock’s prospects rather than […]

7 Common Trading Mistakes Part 1: Poor Diversification

It is true that putting most or all of your “eggs in one basket” increases your chance of hitting it big. But for every happy investor who picks a stock that outperforms the average, there is one who underperforms. For every Apple there is a Kodak, for every Amazon there is a Books-a-Million. Let’s look […]

Beware High Returns

The U.S. stock market is currently in the second longest bull market in its history. When strong long-term bull markets reverse, it can be painful. The great returns in both equity and fixed income markets since 2009 may be leading some investors down a path with an unhappy ending. One of the hallmarks of a […]

The Bitcoin/Cryptocurrency Boom

Is Cryptocurrency the future of investing? Cryptocurrency is a form of digital money designed to be secure and anonymous. Certain technology allows users access to secure payments and store money without needing to use their name or even go through a bank. While many fund managers at national banks are very skeptical, Bitcoin has rised […]

Distorted Statistics and Performance Tests: Part 5

The example of the sun and moon in Part 3 was somewhat vague and quite unrelated to investment analysis, so this part illustrates the concepts using a more realistic example. Let’s assume all investment traders have equal skill except that 1 out of every 10,000 traders cheats by using inside information. Therefore, the probability of […]

Distorted Statistics and Performance Tests: Part 4

When a researcher performs a statistical test on investment returns, the test usually includes a model that specifies how asset returns are assumed to behave in a well-functioning market. For example, the researcher might assume that all strategies run by unskilled manages with similar risk will generate the same average return. Of course the researcher […]

Distorted Statistics and Performance Tests: Part 3

This part of the series explains Type I and Type II errors as a basis for understanding why the analyst’s conclusion in Part 2 is wrong. Advanced financial researchers begin by setting up a null hypothesis. The null hypothesis is a statement that the researcher seeks to disprove or fail to disprove. Notice that most […]

Distorted Statistics and Performance Tests: Part 2

The second major problem with statistical tests as performed in finance and economics is a fundamental misunderstanding of inferential statistics. Researchers perform studies based on models. They attribute great importance to variables that are statistically significant. But most researchers completely misstate what the results mean. A typical statistical analysis in investment analysis uses regression techniques […]

Distorted Statistics and Performance Tests: Part 1

Investment analysis, particularly alternative investment analysis, relies on empirical analysis of past returns to form predictions of future risk and return. There are two primary problems with many performance studies: data dredging (also called data snooping), and flawed interpretation of confidence levels. This first part of a five part series discusses data dredging: when a […]

Investment Taxation Uncertainty

by Donald R Chambers President Trump has proposed numerous tax changes that could affect investment income and investment decisions. Proposed tax changes that relate directly to investment income taxation include elimination of the estate tax, elimination of the 3.8% Obamacare tax on investment income, and the possibility that some or all tax payers will be […]

Part 7: Market Timing and Putting it all Together

Part 6 discussed four common types of investors whose strategies varied from betting on price trending, to betting on price reverting. This part tries to develop conclusions regarding these complex issues and which strategies might be appropriate. First, asset allocation is not simply about selecting a percentage of the portfolio to place in equities. It […]

Part 6: Market Timing and Four Types of Investors

Part 5 of this series implies a scary conclusion: investors as a group, and buy-and-hold investors in particular, will tend to have their highest percentage allocation to equities when the equity market is topping out and their lowest allocations to equities when the equity market is bottoming out. Let’s take a look at four primary […]

Part 5: Market Timing and Market Equilibrium

Part 4 discusses the effects of rebalancing in various markets but does not provide insight that can help an investor evaluate the different portfolio risk-management approaches. This part takes a look at the concept of market equilibrium and the way that investor portfolios as a whole must change as the stock market rises and falls. […]

Part 4: Market Timing – Portfolio Rebalancing as Market Timing

In Part 3, portfolio rebalancing was discussed as a method of keeping a portfolio’s risk stable – and presumably matched to an investor’s stable tolerance of risk. For example, an investor targeting a moderate level of risk might rebalance the equity exposure of a portfolio based on how much the market has moved. The portfolio […]

Part 3: Market Timing – Buy-and-Hold, Speculation and Risk Management

Consider a simple portfolio of stocks and low-risk bonds. For the purposes of this discussion it is reasonable to measure this portfolio’s risk as being the percentage of the portfolio that is in equities. Thus, the risk of a balanced portfolio of stocks and bonds would be its 50% equity exposure. Let’s look at three […]

Part 2: Market Timing – Short Term (Daily) Equity Market Timing

The shortest trading interval that most ordinary investors (as opposed to high frequency trading firms) consider is daily – primarily because many mutual funds can be traded with little or no trading costs at the end of each trading day. With most funds an investor can instruct their investment company to buy or sell a […]

5 Questions With Tyler

You’ve appeared on CNBC, Fox Business and Bloomberg an estimated 50 times, what’s it like to be a media darling and so sought after for your financial insight? When we started Biltmore Capital Advisors 10 years ago now, it felt great that a smaller boutique firm was getting the media recognition of a large multinational […]

Part 1: Market Timing – The Long and Short of It

This seven-part series discusses market timing from the perspective of an ordinary investor. The series focuses on equity-market timing – although much of the content could be applied to other markets such as bonds, real estate and commodities. This first part of the series discusses long term market timing vs. short term market timing. Most […]

Conclusions about 10 Economic Factors

Two notable factors are missing from this series of ten economic factors: aggregate demand and natural resources. The dominant thought among academic economists is that aggregate demand for goods and services both by government and consumers drives economic growth. I saw the effects of communism when I visited Poland in the 1970s. There was no […]

Economic Factor #10: Events

Very major disasters such as severe earthquakes, volcanoes, storms, famine, floods, and pestilence can devastate even large economies such as ours. The massive influenza epidemic of 1918 has been found to have damaged economic growth even through the 1920s. Events such as World War II decimated the economies of many nations. The U.S. has been […]

Economic Factor #9: International Growth

It is said that a rising tide carries all ships, and there is no doubt that a generally strong and rising world economy is helpful to the economic growth of the U.S. In the years following the financial crisis of 2007-2009 the increasing U.S. and Chinese economies have tended to help other economies. In the […]

Trump’s Tax Proposals and Investment Decisions

What should investors do in response to the recent release of information provided by the White House outlining proposed tax reforms? Absolutely nothing. The reasons are: (1) the information released contained very little that had not been previously proposed, and (2) the process of working out the details and obtaining Congressional approval has a long […]

Economic Factor #8: Free Trade

Free international trade is vital to economic prosperity. While large, well diversified and geographically isolated countries such as the U.S. can have relatively less dependence on international trade, small countries often rely heavily on international trade to obtain the diverse spectrum of goods and services needed by their people. For example, only about 25% of […]

Economic Factor #7: Institutions

Although I list institutions as the seventh factor in this series on the factors of economic growth, I believe that it is the most important. Some of the factors that are included in the first six factors are actually a subset of “institutions”. In the context of economics, institutions refer to the structures or mechanisms […]

Economic Factor #6: Biorhythms

I am often surprised when I watch a very successful sports team suddenly go on a losing streak even though the players have remained healthy and the team’s strategies are unchanged. Coach Joe Paterno once observed, “You’re gonna get better or you’re gonna get worse, but you’re not gonna stay the same.” Is there an […]

Webinar on Balancing Risk and Return Through Asset Allocation – The Top Down Approach

If you missed the recent webinar on “Balancing Risk and Return Through Asset Allocation, Part I: The Top Down Approach,” presented by Dr. Donald R. Chambers, Chief Investment Officer and a leading expert on finance and economics in private enterprise and academia. You can see and hear the full presentation, including images, HERE. In this webinar […]

Economic Factor #5: Demographics

I think that the Baby Boom generation demonstrated the power of demographics to alter the path of an economy. As that population bubble worked its way through time, its effects can be measured. Schools boomed in the 50s, higher education boomed in the 60s and I believe that part of the economic boom of the […]

Biltmore Webinar: Balancing Risk and Return Through Asset Allocation – The Top Down Approach

Join us for a Webinar, Tuesday, March 28th: A Live Webinar Event How does your financial advisor make decisions about the assets in your portfolio?  How do these asset allocation decisions affect the risk and performance of your portfolio? What level of risk tolerance in your portfolio model is right for your needs? The more […]

Economic Factor #4: Innovation and Regulation

In my years of teaching at the college level, I have noticed that U.S. students do not work as hard as foreign students. But I have also noticed a persistent tendency of U.S. students to be far more creative and perhaps even more rebellious than foreign students. I believe that Americans generally possess a self-confident […]

Economic Factor #3: Cronyism

Undoubtedly, one of the primary factors of economic performance is the extent to which governments exercise or permit cronyism. Government cronyism is when a government favors some businesses over others, or favors the business sector over other economic sectors, or favors unions over businesses, or vice versa and so forth. Government cronyism steers the focus […]

UPS Fourth Quater Report

UPS reported quarterly earnings and revenue that missed analysts’ expectations. The company announced fourth quarter earnings per share of $1.63 on revenue of $16.93 billion, versus a target of $1.69 per share on revenue of $17 billion. UPS Chairman and CEO David Abney credited revenue and volume acceleration during the holidays, plus international performance for […]

Economic Factor #2: Monetary Policy

Monetary policy in the U.S. primarily reflects the current and prospective actions of the Federal Reserve with regard to money, interest rates and credit. The Federal Reserve Act of 1913 established the Federal Reserve system to provide the country with a sound banking and payments system and a stable currency. The power of the Federal […]

UPS News: Weathering Transitions With Advisory Firms

We hope you are enjoying the start of the new year.  In the asset management and advisory business, sometimes individual advisors will move firms for various reasons and at that time, clients have some important decisions to make.  Some of you in the UPS community may be affected by the recent announcement that a group […]

Ten Factors that Drive the Performance of an Economy: Factor One Fiscal Policy

Have you ever wondered what caused the Great Depression of the 1930’s or the recent Great Recession? Have you ever wondered what caused the economy to recover from each of those terrible declines? Economists offer numerous explanations, some of which conflict with each other and only a few of which are generally accepted. The answers […]

Protecting Yourself from Investment Fraud

Recently, Federal prosecutors alleged another billion dollar investment fraud (Platinum Partners) occurred, in which investment professionals may have dramatically overvalued the assets that they held for their clients. Should all investors be worried? Is there any way to protect one’s assets from major risks such as massive fraud? A starting point to protection from fraud […]

Three Keys to Find and Keep a Good Investment Advisor

Avoid obsessing about short-term performance. In fact, most investors should try to avoid watching the ups and downs of financial markets on anything more often than a quarterly basis. Demand simple and clear answers to your questions. Good advisors want to provide clear answers. Bad advisors use buzzwords and long-winded, rambling explanations as tools to […]

The New Era of Low Expense Ratios

After the high mutual fund fees of 50 years ago there emerged a wave of no-load mutual funds that offered investors the opportunity to invest in mutual funds without devastating sales charges. For the last 40 or so years, led by Vanguard, investors have had increasing access to no load mutual funds with low expense […]

Two Danger Signs of a Trading System

Many investors attempt to find their own successful trading system or a trading system offered by someone else that can consistently beat the market. Many will believe that they have discovered this “Holy Grail”. But investors and investment managers who believe that they have found such a system are almost always wrong. Here are the […]

To Minimize Taxes Resist Trades that Feel Good

One of the most wonderful feelings is selling a recently purchased asset that has risen in price. One of the worst feelings is selling a recently acquired asset that has fallen in price. So many investors sell stocks that rise and hold on to the losers. In so doing they are realizing short-term capital gains […]

Dealing With Market Surprises

The last 24 hours has been a surprise to many waking up to news of a Donald Trump presidency.  Stock markets don’t like surprise, which was evidenced by the Dow Jones Futures plummeting almost 1,000 points before recovering from those levels. As I think about this, I’m reminded of a similar political event which happened […]

To Err is Human

One of the most difficult challenges of successful investing is keeping normal human emotions under control. Successful managers must be confident when everyone else is fearful in order to exploit market bottoms. They must be cautious when everyone else is euphoric with greed in order to avoid market tops. I view the financial markets, among […]

The Head Tax

A type of tax that is rarely discussed anymore is the head tax. A head tax is a per-person tax that is fixed regardless of the person’s wealth, income or anything else. Head taxes are widely disparaged as being unfair to the poor or even racist. But few people are aware of the primary economic […]

Always fight the Fed in the long-run

While in the short run the Fed can be all-powerful, in the long run I believe the only thing the Fed can do is create damage. The damaged is cause by the increased uncertainty and short-term distortions of the Fed’s unbridled hubris. In the long run no single monetary force, even the Fed, can change […]

Don’t ever, ever, ever fight the Fed in the short-run

One of the best pieces of investment philosophy is “do not fight the Fed”. This means, do not put your portfolio in a position that will be harmed by the actions of the Federal Reserve. For the past year the Fed has made it clear that they intend to raise interest rates as long as […]

Strategies to Reduce Taxation of Retirement Withdrawals and Appreciated Assets

Tax reduction can be a powerful investment strategy. Let’s review some strategies that taxpayers might use to get more out of their hard-earned savings. Passing IRAs to heirs in the form of inherited IRAs might allow for lower income taxation if the heir withdraws the money at a lower income tax rate. Note that heirs […]

When is a Dollar Worth Less than a Dollar?

The answer is: when access to that dollar causes taxation. Examples include a regular retirement account or an appreciated asset. Withdrawals from some retirement accounts such as Roth accounts and IRAs funded with after-tax contributions are not generally taxable. But this discussion focuses on the vast majority of retirement plans in which each dollar withdrawn […]

When is a Dollar Worth More than a Dollar?

The answer is: When that dollar is in account where is can be accumulated and/or accessed free of taxation. A Roth IRA provides both such Federal income tax benefits. The tax advantages of a both tax-free accumulation and tax-free withdrawal can be huge and can last for over a century if current rules persist! Here […]


Asset allocation is the most important driver of long term investment performance. One of the thorniest issues in asset allocation is the home country bias. The home country bias is the tendency of people to invest much more heavily in the financial assets of their own nation rather than spreading their assets throughout the world […]

Economic Policy Risk and Financial Markets

Much is being said about the potential effects of the U.S. Presidential election this fall. Concerns abound about the potentially devastating effects of “higher taxes and bigger government” if Clinton wins or “trade wars” if Trump wins. I think we have little to worry about. I believe that our only election concern is that the […]

State Income Tax Savings

State Income Tax Savings:  Investors who live in states with high state income tax rates may find retirement saving to be especially valuable if they retire to a state with little or no income taxation on retirement income. For example, a worker placing $100 into a retirement plan may lower their state income taxes by […]

A Less-Known Federal Investment Income Tax Break

A Less-Known Federal Investment Income Tax Break:  One of the least understood breaks on Federal taxation of investment income occurs when investors use Section 1256 contracts such as futures contracts for short-term trading. A potential advantage to using Section 1256 contracts is that net gains from trading are taxed 60% long-term and 40% long-term regardless […]

Federal Income Taxation of Municipal Bond Interest

Federal Income Taxation of Municipal Bond Interest: Interest income on municipal bonds is not always free of Federal income taxation. There are three primary ways that municipal bond interest income is taxed at the Federal level. First, the interest on some municipal bonds may be deemed as being taxable by the IRS if used to […]

Special Limited Time Offer: Free Trading For 12 Months For New Account Holders*

Biltmore Capital has partnered with our custodian, one of the world’s largest brokerage firms, to offer unlimited free trading for one year on equity and ETF transactions.  This exclusive promotion is only available to new accounts opened with Biltmore Capital.   A Biltmore advisor can help you open and transfer your new account, and equity and […]

Taxes on Investment Income and the 3.8% Tax Surcharge

Marginal Federal Income Taxes on Investment Income and the 3.8% Tax Surcharge: As a result of legislation regarding ObamaCare, Federal income taxes now include a 3.8% surcharge on investment income for couples who earn more than $250,000 total. Thus, at these income levels qualified dividends and long-term capital gains are not taxed simply at the […]

Taxes on Investment Income and Social Security

Perhaps the most highly taxed US citizens are middle-income social security recipients. Consider a retired couple earning $32,000 per year before including investment income. For each dollar of investment income the couple is taxed not only on the investment income but also an additional 50% on their social security income. A retired couple earning $44,000 […]

Market Volatility can be Predictable

Market volatility, often measured as the standard deviation of stock market returns, varies from low levels during calm economic times to high levels during periods of great economic uncertainty or market distress. Volatility can be predicted even in an informationally efficient market. For example, a corporation’s stock should be expected to exhibit higher levels of […]

Optimal Diversification

Diversification is one of the most important and reliable methods of enhancing risk-adjusted investment performance. Diversification occurs when assets with imperfectly correlated returns are combined into a portfolio. Diversification reduces risk and can do so without reducing expected returns. Three critical questions arise in trying to diversify optimally or ideally: how many assets should be include […]

Tail Risk Matters

Tail risk is the chance of extremely large losses. Systematic tail risk is the chance of extremely large portfolio losses due to large declines in one or more major financial markets, especially equity markets. Recent advances in finance research are revealing the importance of tail risk in pricing assets and managing investment risk. In particular, […]

Risk when Correlations Go to One

A popular expression after the financial crisis of 2007-2009 was “correlations go to one”. What that means is that, in periods of great financial distress, many securities fall dramatically in price at the same time even when their returns were not highly correlated in normal market conditions. Some securities, such as short-term Treasuries actually rose […]


What is an alternative investment? There are many ways this question can be answered. Alternative investments are often described as any investment that is not a traditional investment such as a stock or a bond. Alternative investments are usually defined as an investment that produces returns that are not highly correlated with stocks and bonds. […]


Asset allocation is the process by which an investor selects asset classes and decides how much to invest in each class such as domestic equities, international equities, real estate, taxable bonds, municipal bonds, money market securities. On the other hand, security selection is the process of choosing which securities to buy within each asset class. […]


In a previous article named “The ABCs of Closed End Mutual Funds” I discussed the basic differences between closed end funds and ordinary open end funds including the key concept that closed end funds can often be traded at market prices that are discounted from the fund’s NAV (net asset value per share). For example, […]


Most investors are familiar with open end mutual funds because these are the common type of mutual funds that have been offered for decades by major investment companies. Few investors are familiar with a less common type of mutual fund: a closed end mutual fund. Closed end funds are worth considering as a potential source […]


Diversification is one of the most important and reliable methods of enhancing risk-adjusted investment performance. But can we diversify in a way that gives our portfolios the best reductions in risk? In this article I discuss which securities to select and how to weight them. Diversification occurs when assets with imperfectly correlated returns are combined […]

Rates v. Prices and Market Efficiency

Informational market efficiency is the concept that financial values reflect available information. For example, a financial value is informationally efficient with respect to underlying fundamental information if that fundamental information (e.g., financial statements) cannot be used to generate improved risk-adjusted returns. Prices that are not informationally efficient offer investors the chance to improve their risk-adjusted […]

Random Walks and Market Efficiency

A financial value is a random walk if its next change in value is not related to, predicted better with or explained by, any previous changes in value. If a financial value follows a random walk then the market for that value is informationally efficient (more precisely, weak-form efficient) with respect to past values (i.e., […]


There are ETFs (Exchange Traded Funds) linked to the value of VIX with different direction risk and leverage. Since the VIX is a very volatile index, some of the ETFs can be extremely volatile. The VXX is a large ETF providing long exposure to the VIX. The XIV is a large ETF that moves inversely […]

UPS Receives Reprieve From Threatened Pension Cuts

Teamsters Union members, including thousands of UPS retirees, received a reprieve from threatened cuts to their pensions, when the U.S. Treasury late Friday rejected a bailout plan proposed by the Central States Pension Fund.  The Fund’s plan would have meant reductions to checks of up to 90% in some cases to these union workers.  Biltmore […]

VIX Trading

VIX trading provides investors and speculators with an easy mechanism to take on long or short risk exposures to changes in the anticipated level of equity market volatility. VIX trading may seem to outsiders as being more like legalized gambling than being a useful part of a modern financial system. But the key role of […]

What is the VIX?

As FDR famously proclaimed: “The only thing we have to fear is fear itself”. The VIX is a market-traded measure of the anticipated volatility of the stock market as indicated by the S&P 500 index. The VIX is computed and reported on a continuous basis using a complex formula involving option prices. Option prices are […]

‘Customers First’ is the Byword in New Regulations to Protect Investors

New regulations requiring financial advisors and brokers handling IRA and 401K accounts to act in the best interests of their clients were released on April 5 by the Department of Labor. Prior to the new regulations, which will take effect in Spring 2017, brokers have been required only to recommend ‘“suitable” investments, such as a more […]

Closed-End Fund Discounts

Closed-End Funds (CEFs) tend to trade at market prices that are discounted (less than) the net asset value of the shares. In some cases, a portion of these discounts reflects underpricing due to market inefficiencies. In these rare circumstances, investors may be able to earn superior risk-adjusted returns relative to other investment opportunities. However, in […]

Closed-End Funds

Closed End Funds (CEFs) are quite similar to ETFs except that they generally lack the provisions that drive the market prices of the closed end funds towards their net asset values. The funds are generally closed to new investors and do not provide investors with an option to redeem their existing shares with the investment […]

Exchange Traded Funds

Exchange Traded Funds (ETFs) are an increasingly important type of mutual fund that differs in important ways from their better-known cousins: open end funds. Most investors purchase and sell ETFs on secondary markets such as the New York Stock Exchange rather than through the investment companies that sponsor the fund. ETFs are designed to trade […]

Manager Named Top Alternative Asset Manager

Each year, Morningstar recognizes the top fund managers in the following categories: Domestic Stocks, International Stocks, Fixed-Income, Allocation, and Alternative. For 2015, James Troyer, Michael Roach, and James Stetler of the Vanguard Market Neutral Fund (VMNIX) were recognized as the best managers in the Alternative fund category, beating out the managers of the Boston Partners Long/Short Research Fund(BPIRX) […]

Open-End Mutual Funds

Open-end mutual funds are the most well-known type of mutual fund and are offered by many investment companies such as Vanguard, Fidelity, and T. Rowe Price. Investors purchase shares in open-end mutual funds directly from the investment company or through a broker. When an investor purchases shares in a fund the investment company creates new […]

Mutual Fund Net Asset Values

The net asset value of a mutual fund is an important measure of the fund’s value to its shareholders. The net asset value may be viewed as a measure of how much each share of the fund would be worth to its holder if it were being liquidated in an orderly fashion. Thus the net […]

Falling Oil Prices are not a Domestic Economic Disaster

The financial media are full of lamentations that the low price of oil is devastating the world economy in general and the US stock market in particular. This is strange given that in 1980 and 2010 the relatively high price of oil was being touted as ruining the US economy and its stock prices.  It […]

When are tax-advantaged investments most appropriate?

The primary factors that make tax-advantaged investments preferable to an investor are: The investor is in a high-income tax bracket, The investor expects to remain in a high tax bracket for at least several years, and The investor is not able to invest all available funds inside retirement accounts. The first two factors reflect the […]

What are Tax-Advantaged Investments?

Tax-advantages investments are investments that offer lower income taxes in the long run when adjusted for the time value of money (i.e., viewed with present values). There are five primary potential income tax advantages: 1. Tax-deductibility of contributions or purchases 2. Tax-deductibility of non-cash items such as depreciation 3. Deferral of tax liabilities on income […]

Market Volatility is Sometimes Hyped

News headlines about stock market volatility often distort the importance of a stock market decline by emphasizing point changes in major indexes rather than percentage changes. When the Dow Jones Industrial Average falls by more than 200 points news commentators often describe the event as being dramatic. But a clear view of equity market volatility […]

Tyler Vernon Guest Trader on CNBC’s Halftime Report

Biltmore Capital’s Tyler Vernon was the guest trader on CNBC’s “Halftime Report” on Wednesday, December 23.  His commentary spanned a wide range of topics including Apple, Nike, Micron and Celgene stocks. Watch the video…

Biltmore Capital Fall Newsletter

Our Fall 2015 Newsletter offers insights on a number of topics including: Key Social Security Benefits Rules, 4 Good Ways You Could Use An RMD, 8 Smart Moves For College Grads, Three Ways To Defuse Estate Rifts and More! Click HERE to view our Fall 2015 Newsletter New Book Donald R. Chambers, Biltmore Capital’s Chief […]

Using a Margin Loan to Buy a Home

An overview of using a margin loan to assist in purchasing a house Many people have considered using a margin loan to purchase a home or even to pay down a mortgage.  In this capacity, they can borrow against their investment portfolio and pay down the mortgage, essentially “refinancing” it from a traditional mortgage to […]

Choosing a Margin Loan Provider

Now that you understand how a margin loan works, you need to find a margin loan provider. But what criteria do you use to compare providers? Are low margin rates the most important factor? Do you have the right type of securities to use in a margin loan? Are there other risks to consider? Below […]

3 Ways to Prepare for Forthcoming Market Volatility

View “Three Ways to Prepare for Forthcoming Market Volatility” video capture of recent seminar presented by Dr. Donald R. Chambers,  Biltmore’s Chief Investment Officer and a leading expert on finance and economics in private enterprise and academia. You’ll learn how alternative investments can best fit within an individual’s portfolio. Gain vision into the investment thinking […]

Tyler Vernon on CNBC Halftime Report

Tyler Vernon, Biltmore’s CEO, appeared as a panelist on CNBC’s Halftime Report on Friday, May 1st. Watch excerpts from the segment, including Tyler’s insight on YUM Brands, Social Media companies and Gold.  Watch video.

May 6 Seminar On Preparing for Forthcoming Market Volatility

With stock and bond markets near record highs, how will you navigate the markets for the remainder of 2015 and beyond? Join us for a discussion with Dr. Don Chambers*, Biltmore’s Chief Investment Officer,  to learn more about three strategies that investors can implement to protect their wealth while providing opportunities for growth. Do you have questions or […]

Why Even Rich People Are Having Trouble Getting a Mortgage

Home prices are rising, but even the well-off are facing obstacles from tight-fisted banks By: Richard Satran US News & World Report’s | August 1, 2013 Having trouble getting home financing? You’re not alone. Even wealthy  people are getting rejected under the tough new lending rules adopted  after 2008’s housing market crash. Moneyed  enclaves are […]

Housing stocks fall, Facebook jumps on Wall Street

MATTHEW CRAFT / AP Business Writer The Associated Press | July 25, 2013   NEW YORK (AP) — Disappointing results from PulteGroup, D.R. Horton and other home builders left major stock indexes with only tiny gains in afternoon trading. Technology stocks rose after Facebook’s earnings blew past analysts’ estimates. Even with plenty of news from […]

Stocks gain after unemployment claims fall

By Steve Rothwell Associated Press | May 2, 2013 NEW YORK The stock market is all about jobs this week. Stocks rose Thursday after unemployment claims fell to a five-year low. A day earlier it was just the opposite; the market slumped after companies added just 119,000 jobs in April, the fewest in seven months, […]

The Go-To Guy

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First-Time Home Buyers Missing Out on Housing Recovery

By David Francis, US News & World Report’s US News & World Report | December 10, 2012   Tougher lending standards squeeze out potential borrowers As the housing market continues to show improved signs of strength, many first-time home buyers are failing to benefit from the broader recovery. The Campbell/Inside Mortgage Finance HousingPulse Tracking Survey, […]

Refinancing near retirement can be smart

By Amy Hoak, MarketWatch Marketwatch | December 10, 2012   CHICAGO (MarketWatch)—Tempting low interest rates continue to make headlines, making refinancing your mortgage look attractive. But when retirement isn’t far off, the decision to refinance can get more complicated. After all, most pre-retirees are trying to reduce debt before their last day of work, not […]

To buy or re-fi: Is now the time?

by Kathryn Tuggle, Personal Finance Editor Dimespring | November 21, 2012   Interest rates may be at record lows, but that doesn’t mean you should pull the trigger on a major purchase before you’re ready. Whether you’re looking to buy a home or refinance the one you’ve got, it’s always best to put pen to […]

Caterpillar, Apple push Wall Street lower

By Caroline Valetkevitch NEW YORK | Tue Sep 25, 2012 5:22pm EDT   NEW YORK (Reuters) – The S&P 500 suffered its worst day since June on Tuesday, pulled lower by Caterpillar Inc (CAT.N) after it cut its profit outlook, the latest high-profile company to warn about profit growth. Technology shares came under pressure after […]

Brawling Politicians: Bad for Your Portfolio?

By Richard Satran           September 7, 2012 The love fest of the political convention season ended almost as soon as it began, when the first prime-time speaker, House Speaker John Boehner, set a Republican agenda that “starts with throwing out the politician who doesn’t get it, and electing a new president who does.” Since then, the […]

How to play it: Options trades ahead of the Greek elections

By Doris Frankel and David K. Randall NEW YORK | Wed Jun 6, 2012 3:39pm EDT (Reuters) – Greece may once again determine the direction of global markets. Money managers and analysts are looking ahead to Greek parliamentary elections on June 17 that could decide whether the country continues austerity measures it agreed to as part […]

Barron's Top 100

View the full article here.   Barron’s The Top 100 Independent Financial Advisers (2008) and The Top 100 Women Financial Advisors (2009, 2010, 2012,)  (“Barron’s award) recognized Erin Botsford based on assets under management, revenue produced for the firm, regulatory record, quality of practice  and  philanthropic work. Biltmore Capital did not pay or provide any compensation […]

For stocks, deja vu all over again?

Reuters By David K. Randall NEW YORK | Tue Apr 17, 2012 1:13pm EDT (Reuters) – Market history may be repeating itself. Through Monday, the Standard & Poor’s 500 stock index was up 9.0 percent for the year to date, thanks in large part to signs that the U.S. jobs market and retail sales were […]

No sure thing, but these strategies offer healthy yields

InvestmentNews By Jeff Benjamin March 25, 2012 6:01 am ET Finding income at a time when all the usual suspects are offering next to nothing in the way of yield requires both creativity and a stomach for a bit more risk. That said, it turns out there are some interesting and relatively simple income strategies […]

Tyler Vernon: Relentless Service

By Kathleen Biggins GENIUS COUNTRY  Tyler Vernon watched both planes fly into the World Trade Center on 9/11, one from his office at Merrill Lynch, and one as he was fleeing Manhattan.   Like many New Yorkers, he thought about what would have happened if the plane had veered slightly to the left and into his building, […]

Worth Magazine

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Stocks edge higher on bank earnings, economic news

By CNNMoney staff @CNNMoneyMarkets January 19, 2012: 12:16 PM ET NEW YORK (CNNMoney) — U.S. stocks advanced for a third straight session Thursday, as investors welcomed a slew of positive news on both the earnings and economic fronts. The Dow Jones industrial average (INDU) added 35 points, or 0.3%, the S&P 500 (SPX) rose 7 […]

Taking Charge of Money and Investments in the New Year

Biltmore Capital offers wealth management and financial solutions for life. By Euna Kwon Brossman 5:30 am Taking charge of one’s financial situation ranks right up there with getting in shape as one of the top new year’s resolutions. Tyler Vernon’s goal is to give his clients the best financial advice he can and give them the […]

Stocks End Mixed; Fed Urges Action on Housing

By Kaitlyn Kiernan 01/04/12 – 04:20 PM EST NEW YORK (TheStreet) — The Dow Jones Industrial Average shot into positive territory Wednesday as commentary from the Federal Reserve on plans to shore up the U.S. housing market overshadowed European debt crisis concerns. The Dow rose 21 points, or 0.2%, to close at 12,418, after falling […]

Stocks trim gains on euro jitters

By Hibah Yousuf @CNNMoneyMarketsDecember 13, 2011: 11:55 AM ET   NEW YORK (CNNMoney) — U.S. stocks pared earlier gains Tuesday following reports that German Chancellor Angela Merkel rejected the idea of increasing Europe’s bailout fund. At midday, the Dow Jones industrial average (INDU) was up just 59 points, or 0.5%, and the S&P 500 (SPX) […]

Stocks slide on Europe, China worries

By Blake Ellis and Hibah Yousuf @CNNMoneyMarkets November 23, 2011: 12:37 PM ET     NEW YORK (CNNMoney) —   U.S. stocks slid deep in the red Wednesday, as eurozone fears rumbled on and a preliminary report showed that Chinese manufacturing slowed sharply. An lackluster report on the U.S. job market added to the gloomy […]

IPOs With Brand Recognition

By JILIAN MINCER NEW YORK TIMES August 24, 2010 With well-known companies such as Skype SA and General Motors Co. planning to go public, investor interest in IPOs is picking up. Brand recognition, however, isn’t making their advisers any more comfortable with the initial public offerings. Many worry that individuals will act emotionally and overpay […]

Investing In Volatility New York Times

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Investing in Volatility, to Cash In or to Hedge Bets

  By PAUL SULLIVAN Published: August 12, 2011   THE stock market in the last week has been the very definition of volatile, up one day, down the next, then up again the day after. Enlarge This Image Laura Pedrick for The New York Times “They’re having flashbacks to 2008 at this point, so that’s […]

Stocks: A 'schizophrenic' day

By Hibah Yousuf August 1, 2011: 4:27 PM ETNEW YORK (CNNMoney) Stocks took a wild ride Monday. The day started with an early rally fueled by hopes of a debt deal, but a weak manufacturing report quickly deflated that optimism — leaving stocks little changed as investors await a House vote. The Dow Jones industrial […] What to do about foreign currency exposure

By Dan Weil The dollar has taken a wild roller coaster ride over the past three years, wreaking havoc on a portion of many investors’ portfolios. If you’re wondering what to do about that, you aren’t alone. “Everyone is talking about this. Clients are getting concerned,” says Tyler Vernon, chief investment officer of Biltmore Capital […]

CNN Money: Earnings: The market's bright spot

By Hibah Yousuf July 3, 2011: 7:26 AM ET NEW YORK (CNNMoney) — Hooray for earnings! The economy may be slowing, but don’t expect too much of a hiccup in the upcoming earnings season. Experts are optimistic that Corporate America’s balance sheets will continue to improve, and say earnings for S&P 500 companies are on […]

CNN Money: Stocks: Worst day of the year for Dow, S&P 500

By Hibah Yousuf June 1, 2011: 4:34 PM ET NEW YORK�(CNNMoney) — A triple dose of bad news sent stocks sharply lower Wednesday afternoon, with the Dow and S&P 500 posting their steepest losses in nearly a year. The Dow Jones industrial average (INDU) fell 280 points, or 2.2%, with all of the blue chip […]

Market Watch: Funds Use Options to Enhance Income

By Reshma Kapadia At a time when investors are caught between meager interest rates on savings accounts and worries about whether the recent stock-market run-up can continue, funds using options to generate extra income or cushion against losses, or both, are gaining attention. One of the most popular approaches involves “covered calls,” a strategy in […]

Market Watch: US Stocks Edge Higher On Strong Factory Data

By Brendan Conway NEW YORK (MarketWatch) — U.S. stocks inched into positive territory, as a white-hot reading from mid-Atlantic manufacturers outweighed higher-than-expected jobless claims and a rise in U.S. consumer prices. A day after investors pushed the Standard & Poor’s 500-stock index to twice its financial-crisis low, the Dow Jones Industrial Average rose 13 points, […]

CNN Money: Stocks end at fresh multi-year highs

By Blake Ellis, staff reporterFebruary 17, 2011: 5:29 PM ET NEW YORK (CNNMoney) — U.S. stocks ended at fresh multi-year highs Thursday, as investors focused on an upbeat manufacturing report and looked past indications that inflation is heating up. Dow Jones industrial average (INDU) edged up 30 points, or 0.2%, with 21 of the Dow’s 30 […]

Reuters: US STOCKS – Futures point to weak open after JPMorgan, data

 Fri Jan 14, 2011 9:16am EST * JPMorgan Q4 profit tops view, stock dips * December retail sales rise less than expected * Intel gains after results, sees strong revenues * Futures off: Dow 39 pts, S&P 3.7 pts, Nasdaq 1.75 pts * For up-to-the-minute market news see [STXNEWS/US] (Updates with data) By Ryan Vlastelica […]

CNN Money: Europe is the market's biggest wild card in 2011

By Hibah Yousuf, staff reporter January 8, 2011: 8:51 AM ET NEW YORK (CNNMoney) — Investors are optimistic that stocks will continue to recover in 2011, but it will be far from a smooth ride, thanks to a number of potential road blocks along the way. The biggest hurdle this year will be Europe’s ongoing […]

CNN Money: Wall Street eases into the home stretch

By Blake Ellis, staff reporter December 19, 2010: 9:18 AM ET NEW YORK ( — Stocks are likely to trade in a narrow range during the home stretch of the year as investors lock in profits and leave their desks for the holidays. The major indexes have already risen more than 4% this month and […]

CNN Money: Stocks end quiet session at 2-year highs

By Blake Ellis, staff reporter December 17, 2010: 5:11 PM ET NEW YORK ( — U.S. stocks ended little changed on Friday, hovering at two-year highs hit in the previous session, as President Obama signed a tax-cut plan into law. The Dow Jones industrial average (INDU) ticked down 7 points; the S&P 500 (SPX) edged up […]

Financial Planning: Other Alternatives

Definitions of alternative investments are almost as numerous as the products themselves, but financial planners agree: Investors can’t afford to be without them. By Suzanne McGee December 1, 2010   If a device existed that could monitor investors’ stress levels, alarm bells would have been sounding and red lights flashing for most of the last […]

USA Today: Deal news helps stocks recover from early losses

By Stephen Bernard, AP Business Writer NEW YORK — Stocks edged higher Tuesday as investors brushed off news that consumer confidence dropped to its lowest level since February. Traders focused more on encouraging signs of confidence in the corporate world including a jump in dealmaking. The Dow Jones industrial average rose more than 46 points, […]

The Wall Street Journal

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Wall Street Journal: Downturn Drives Up Wealthy Investors' Borrowing

By JILIAN MINCER Borrowing against assets isn’t new for Tyler Vernon’s wealthy clients. How much they need the cash is. Plummeting values for property and other assets, along with a weak economy and still-tight credit markets, have put even the very wealthy in a pinch. Mr. Vernon, who founded Biltmore Capital Advisors in Princeton, N.J., […]

Stocks continue rally after drop in jobless claims – Tyler Vernon – USA Today

By Stephen Bernard, Associated Press NEW YORK — Stocks extended their September rally Thursday following more encouraging news on the job market. The Dow Jones industrial average rose 28 points after the Labor Department said first-time claims for unemployment benefits fell last week to the lowest level in two months. In another hopeful sign on […]

NY Daily News: Dow closes up: Stock rally gains more momentum

BY THE ASSOCIATED PRESS DAILY NEWS STAFF WRITER Thursday, September 09, 2010   Stocks extended their September rally Thursday following more encouraging news on the job market. The Dow Jones industrial average rose 28 points after the Labor Department said first-time claims for unemployment benefits fell last week to the lowest level in two months. […] Good news on jobs gives added fuel to market rally

Published: Thursday, September 09, 2010, 8:10 PM     By: The Associated Press Stocks extended their September rally Thursday following more encouraging news on the job market. The Dow Jones industrial average rose 28 points after the Labor Department said first-time claims for unemployment benefits fell last week to the lowest level in two months. In another […]

Business Week: Stocks continue rally after drop in jobless claims

By: Stephen Bernard NEW YORK Stocks extended their September rally Thursday after more encouraging news on the job market. The Dow Jones industrial average rose 17 points in afternoon trading, putting it back into positive territory for the year, after the Labor Department said first-time claims for unemployment benefits fell last week to the lowest […]

Town Topics: It's New To Us

By: Jean Stratton HIGH-END HELP: “Today, clients want to protect what they have and also grow conservatively. I like being able to help people achieve their goal during these hard financial times. Our focus is to protect your assets.” Tyler Vernon is founder and chief investment officer of Biltmore Capital Advisors, headquartered in Princeton. Customized […]

Global Markets Shudder – Tyler Vernon – The Wall Street Journal

By KANA INAGAKI And MICHELE MAATOUK Global stock markets skidded as a record drop in U.S. existing-home sales added to concerns about the global economy, pushing investors into bonds and less-risky assets. The Dow Jones Industrial Average briefly dropped below 10000, the Japanese yen hit a 15-year high against the dollar, oil prices fell below […]

IPOs With Brand Recognition

By JILIAN MINCER AUGUST 24, 2010 With well-known companies such as Skype SA and General Motors Co. planning to go public, investor interest in IPOs is picking up. Brand recognition, however, isn’t making their advisers any more comfortable with the initial public offerings. Many worry that individuals will act emotionally and overpay for stock whose […]

US Stocks Lower As Investors Move Into Safer Havens – Tyler Vernon – The Wall Street Journal

By Jonathan Cheng NEW YORK (MarketWatch) — Investors sent U.S. stocks to a broad and sharp decline as they snapped up safe-haven Treasurys, fearing a protracted and uncertain recovery. The Dow Jones Industrial Average fell 86 points, or 0.9%, to 10089 in late afternoon trading, on track for its fourth-straight decline. Earlier, the measure briefly […]

Market Watch: US Stocks Lower As Investors Move Into Safer Havens

By Jonathan Cheng NEW YORK (MarketWatch) — Investors sent U.S. stocks to a broad and sharp decline as they snapped up safe-haven Treasurys, fearing a protracted and uncertain recovery. The Dow Jones Industrial Average fell 86 points, or 0.9%, to 10089 in late afternoon trading, on track for its fourth-straight decline. Earlier, the measure briefly […]

Market Watch: US Stocks Fall As Housing Data Add To Gloom; DJIA Off 105

By Donna Kardos NEW YORK (MarketWatch) — A record drop in U.S. home resales sent U.S. stocks broadly lower Tuesday as investors flocked to the safety of Treasurys on growing concerns about the future of the economy. The Dow Jones Industrial Average was recently off 105 points, or 1%, to 10070, on track for its […]

IPOs With Brand Recognition – Tyler Vernon – The Wall Street Journal

By JILIAN MINCER With well-known companies such as Skype SA and General Motors Co. planning to go public, investor interest in IPOs is picking up. Brand recognition, however, isn’t making their advisers any more comfortable with the initial public offerings. Many worry that individuals will act emotionally and overpay for stock whose value hasn’t yet […]

The Early Tick – Tyler Vernon – CNBC

Dow struggles higher as confidence data wanes

By Stephen Bernard, AP Business Writer 7/28/2010   NEW YORK — News that consumers are more pessimistic has put the stock market’s rally on hold.   Consumer confidence has waned in recent months primarily because of ongoing concern about high unemployment. With consumers not as confident as they were just a few months ago, their […]

Stocks fall slightly on consumer confidence report – Tyler Vernon – Yahoo Finance

Tuesday July 27, 5:53 pm ET By Stephen Bernard,AP Business Writer Stocks fall on consumer confidence dip; economic data distracts investors from strong earnings. NEW YORK (AP) — News that consumers are more pessimistic put the stock market’s rally on hold. Stocks fell modestly Tuesday after three days of big gains.

Abraxis Rises 21%; Alcoa Dips

JULY 1, 2010 By DONNA KARDOS YESALAVICH Stocks fell in the final session of the second quarter as a report on private-sector jobs weighed on sentiment and as Moody’s warned it may cut its credit rating on Spain. Alcoa, Walt Disney and Hewlett-Packard were among the decliners. The Dow Jones Industrial Average dropped 96.28 points, […]

US Stocks Fall Wednesday And For 2Q, Snap 4-Quarter Winning Streak

By Donna Kardos June 30, 2010, 4:58 p.m. EDT NEW YORK (MarketWatch) — U.S. stocks fell Wednesday in the final session of the second quarter as a report on private-sector jobs disappointed investors and Moody’s warned that it may cut its credit rating on Spain. Alcoa, Walt Disney and Hewlett-Packard were among the decliners. The […]

Stocks: Best Week in a Year – Tyler Vernon –

By Alexandra Twin, senior writer July 9, 2010: 6:59 PM ET NEW YORK ( — Stocks rallied Friday, finding momentum at the end of a choppy session ahead of the first wave of quarterly corporate results due out next week.

The Trick to Balancing, and Rebalancing, Your Portfolio

Ed Rabinowitz, Tuesday, June 8th, 2010   Have you ever tried standing on one leg? (Of course you have.) Maybe you were able to maintain that position for one minute, perhaps longer, but eventually — and before you toppled over — you put your other foot on the ground. In other words, you rebalanced yourself.Now […]

Global stocks, oil slide, U.S. dollar gains on gloomy data – Tyler Vernon – Thomson Reuters

By Herbert Lash NEW YORK | Wed Jun 3, 2009 11:39pm IST (Reuters) – Global stocks and oil slipped while bond prices rose on Wednesday after a batch of weak U.S. economic data and an unexpected rise in crude inventories suggested the road to recovery is still bumpy.

Instant View: Pending home sales hit 6-month high – Tyler Vernon – Reuters

NEW YORK | Wed Jun 2, 2010 10:24am EDT NEW YORK (Reuters) – Pending sales of previously owned U.S. homes hit a six-month high in April, as prospective home owners took advantage of a popular homebuyer tax credit, a survey showed on Wednesday.

Market Outlooks: Volatility, 1,000 Point Dow Drop in Next Month

Published: Thursday, 27 May 2010 | 1:13 PM ET   By: JeeYeon Park Writer   Stocks jumped at the open and kept climbing on Thursday, following the previous session’s late-day selloff. Can the markets hold the gains until the close? Christopher Hobart, CEO and founder of Hobart Financial Group, and Tyler Vernon, chief investment […]

VOICES: Tyler Vernon, On Covered Call Options – Tyler Vernon – The Wall Street Journal

By Mike Miliard Tyler Vernon Tyler Vernon is a principal and portfolio manager at Princeton, N.J.-based Biltmore Capital Advisors. He told WSJ Financial Adviser that a covered call option strategy can generate decent returns in a sideways market. Traditional advisers formulate a percentage of stocks or percentage of bonds for their clients, and some of […]

The Early Tick – Tyler Vernon – CNBC

Market Edge – Tyler Vernon – CNBC

Stocks give up gains – Tyler Vernon –

By Alexandra Twin, senior writer March 3, 2010: 5:57 PM ET NEW YORK ( — Wall Street erased gains by the close Wednesday, as relief about the day’s economic news gave way to concerns about the job and manufacturing reports due out over the next two days.

Large-Cap Stocks and Covered Calls Are Key to 2010 Outperformance – Fund Manager Tyler Vernon – Seeking Alpha

Tyler Vernon is a Principal and Portfolio Manager at Princeton, NJ based Biltmore Capital Advisors. We had the opportunity to ask Tyler how he’s allocating among different asset classes in this environment, and what his overall strategy is for outperformance in 2010. • • • Seeking Alpha (SA): In your portfolio currently, how are you […]

Market Edge – Tyler Vernon – CNBC

How to Play this Market- Tyler Vernon – Fox Business

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Using funds from annuities may prove costly

Published: Monday, November 16, 2009, 8:00 AM By Karin Price Mueller/The Star-Ledger Q. I am 37 years old and want to buy a house. The problem is the down payment. The only money I have access to is an annuity worth $15,000. I called the administrator and he said that I can withdraw the money […]

Market Edge – Tyler Vernon – CNBC

The Dean’s Market Outlook

October 20th, 2009 at 8:17 am Posted by The Dean As always, The Dean’s watching the wide world of stocks to get an idea of what’s going on in the markets to find opportunities that are hidden or underdisocovered. After last week’s news of JPMorgan Chase (NYSE: JPM) released third quarter profits of $3.6 billion, many are […]

Dow 10,000: Stocks at one-year highs – Tyler Vernon –

Wall Street recharges the rally as investors gear up for a big week for corporate results. Apple delivers strong results after the close. By Alexandra Twin, senior writer Last Updated: October 19, 2009: 6:28 PM ET NEW YORK ( — The Dow reclaimed 10,000 on Monday, hitting its highest point in over a year, as a […]

Should You Be in Options? – Tyler Vernon – CNBC

U.S. Stocks Fall, Posting First Back-to-Back Losses Since July

By Rita Nazareth – October 3, 2009 08:00 EDT Oct. 3 (Bloomberg) — U.S. stocks fell, giving the Standard & Poor’s 500 Index its first two-week decline since July, after manufacturing expanded less than anticipated and unemployment climbed to a 26-year high, spurring concern the economy is rebounding slower than forecast. General Electric Co. and […]

Investors will look for signals about economy – Tyler Vernon – Los Angeles Times

Concern that a recovery may be slower than expected, fueled by last week’s downbeat housing and factory data, could put the recent rally on hold this week. But sector reports due out may ease fears. September 28, 2009|Associated Press (Page 2 of 2) “It’s quite clear that some of these stimulus programs have had a […]

Market Edge – Tyler Vernon – CNBC

Tyler Vernon – Fox Business News

Dow makes it 8: Best win streak since April '07 – Tyler Vernon –

Wall Street closes at fresh 2009 highs, with blue chip average managing longest winning streak in nearly 2-1/2 years. By Alexandra Twin, senior writer Last Updated: August 27, 2009: 6:02 PM ET NEW YORK ( — Stocks rose Thursday, with the Dow extending its winning streak to eight straight sessions in a thinly-traded advance fueled […]

Tyler Vernon – Fox Business News

A Big Rally for Stocks – Tyler Vernon –

Wall Street advances as investors scoop up a variety of shares ahead of the first big wave of quarterly results By Alexandra Twin, senior writer Last Updated: July 13, 2009: 5:38 PM ET NEW YORK ( — Stocks surged Monday, with financial and consumer shares leading the advance, as investors welcomed an analysts’ improved […]

Afternoon Market Check – Tyler Vernon – CNBC

Tyler Vernon – Fox Business News

INSTANT VIEW: Service sector decline slows; factory orders up

NEW YORK | Wed Jun 3, 2009 11:01am EDT NEW YORK (Reuters) – The U.S. services sector shrank again in May, according to a report released on Wednesday, while factory orders posted an increase. KEY POINTS: * The Institute for Supply Management’s nonmanufacturing index edged up to 44.0 in May from 43.7 in April. * […]

Global stocks, oil slide, U.S. dollar gains on gloomy data

 By Herbert Lash NEW YORK | Wed Jun 3, 2009 2:09pm EDT (Reuters) – Global stocks and oil slipped while bond prices rose on Wednesday after a batch of weak U.S. economic data and an unexpected rise in crude inventories suggested the road to recovery is still bumpy. Oil markets fell as the rise in U.S. […]

Tyler Vernon – Fox Business News

Back Away From Banks – Tyler Vernon – CNBC

Back Away From Banks – Tyler Vernon – CNBC

Stocks slip on flu, bank concerns

Investors worry about the potential economic impact of swine flu, bank ‘stress tests’ and quarterly results. By Alexandra Twin, senior writer Last Updated: April 27, 2009: 6:29 PM ET   NEW YORK ( — Stocks slipped Monday as fears about the impact of swine flu and jitters about the next batch of quarterly results […]

Tyler Vernon – Fox Business News

CNN Money: Big Rally on Wall Street

Wells Fargo’s surprisingly upbeat forecast gives stocks a boost. Market gains for fifth straight week. By Alexandra Twin, senior writer Last Updated: April 9, 2009: 6:12 PM ET   NEW YORK ( — Stocks rallied Thursday, ending a holiday-shortened week on a high note after Wells Fargo forecast a nearly $3 billion quarterly profit, […]

Rally to End as Earnings Season Begins – Tyler Vernon – CNBC

Bank Stocks Riskier than Vegas – Tyler Vernon – CNBC

Where is the Market Heading – Tyler Vernon- CNBC

Manufacturing Sector Hardest Hit – Tyler Vernon – CNBC

Tyler Vernon – Fox Business News

Fox Business December 2008 – Tyler Vernon