The March/April 2011 issue of the Financial Analysts Journal carries a review of my book, Dynamic Asset Allocation: Modern Portfolio Theory Updated for the Smart Investor. The reviewer is one Martin Fridson, global credit strategist at BNP Paribas Investment Partners. What does Fridson think of my modest effort? Judge for yourself by reading the review here.

The sharp rise in gasoline prices over the past year has all but eaten up the payroll tax cut enacted late last year, advises Goldman Sachs via Fortune.com. The risk is that the ascent of fuel costs cuts sharply into consumer spending, which has been buoyant lately. “A key reason for concern is the sharp rise in gasoline prices so far in 2011 — nearly 70 cents per gallon — which is siphoning off household income at a run rate equivalent to $100 billion per year,” notes Goldman economist Andrew Tilton.

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Are Small Caps Too Pricey?
The Wall Street Journal | Apr 18
The market’s smallest stocks are commanding the largest premiums—and some of their biggest fans are becoming alarmed. The Russell 2000 Index, which comprises about 2,000 stocks with small market capitalizations, is within about 2% of a record closing high. It is a milestone that it looks destined to reach well before larger peers such as the Dow Jones Industrial Average and the Standard & Poor’s 500-stock index, which are off their record highs by 13% and 16%, respectively. Small companies now command the widest premium over large-cap stocks in at least a generation, based on the ratio of price to earnings.

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