Kane Cotton

Mr. Cotton serves as lead portfolio manager on all Capital Allocation & Management portfolios. As Chief Investment Strategist, he is responsible for portfolio positioning, due diligence and overall investment strategy. He has played an integral role in developing Capital Allocation & Management’s research processes as well as directing market strategy, due diligence and portfolio management efforts. He served as an expert panelist on ETF strategy with iShares. Prior to joining Capital Allocation & Management in 2005, he spent six years at Invesco. He graduated from Colorado State University in 1996 with a B.A. in Economics and a minor in English where he was an Honorary Member of Omicron Delta Epsilon International Economics Honor Society. He earned his M.B.A. in Investment Management in 2005 from the University of Colorado. He is a CFA charterholder and a member of the CFA Society of San Francisco.

Articles by Kane Cotton:

Dreaming the Impossible

October 7, 2013

“You may say I’m a dreamer, but I’m not the only one. I hope some day you’ll join us, and the world will live as one.” – John Lennon – Imagine Have you dreamed of something amazing lately? Something impossible? Implausible? Inconceivable? If not, I highly recommend it. Think about the internet. Today we take […]


If You Want to Know Where Stocks are Headed, Don’t Ask the Economy

May 22, 2013

Stocks should do well when the economy does well. This seems like a no brainer. After all, a strong economy should mean that more profit and growth is available to corporations, and that should make its way down to shareholders. This, in turn, should reward investors who pursue broad market exposures offered through ETFs like […]


Another Look at Valuations

January 29, 2013

Why Playing Defense May Be More Expensive The sideways market paradox continues. While earnings, cash balances and other corporate metrics have improved dramatically over the last decade, the market itself has been range bound and volatile due to the excessive valuations that resulted from the tech boom. To be sure, we are 12 years into […]


Rebalancing Keeps Us from Over-Indulging

January 4, 2013

Do you know that feeling of regret after you’ve eaten that seventeenth Christmas cookie in the same day? Me too. It was good in a small dose, so we tell ourselves that it must be even better in larger doses, right? In a way, managing risk in our portfolio is similar to managing our diet […]


The Long Slog Toward a Cheaper Market

December 11, 2012

Over time, earnings and stock prices move together. The short term is more of an educated guess that is probably best left to technical analysis. With earnings season wrapping up, it makes sense to look at where we’ve been, where we are, and where we may go as we move into 2013. The chart below […]


The Amazing, Shrinking Fixed Income Yield Continues its Downward Slide

October 31, 2012

While Treasury yields bounced a bit in Q3, the longer-term trend has clearly been down. Chart 1 shows the very well defined declining range of Treasury yields over the last 20 years. Yields currently sit near the bottom of the long-term trading range and very near generational lows. Chart 1: Long Term Treasury Yield Decline […]


Which Political Party is Better for the Markets

October 11, 2012

The rhetoric is high as we move closer to Election Day. As each side offers their claims of who is best for the country and economy, we thought it would be a good time to look at historical stock market returns under different political environments. The chart below shows the average returns for the U.S. […]


The Crummiest Bull Market Ever

October 1, 2012

Do you remember the footloose and fancy free feeling of making “easy money” in the stock market during the 1980s and 1990s? People were optimistic, the economy was growing and markets were booming. Over the last decade, things have changed. Two big market crashes and the recessions that followed, along with the very slow recovery […]


It’s the (REAL, not the financial) economy, stupid!

September 26, 2012

“Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee is concerned that, without further policy accommodation, economic growth might not be strong enough to generate sustained improvement in labor market conditions. Furthermore, strains in global financial markets continue to pose significant downside risks to the economic outlook… […]


Dividend Focused ETFs Don’t Offer a Free Lunch, but They Let You Snack along the Way

September 7, 2012

There is no free lunch in investing! These words ring true, on average, over time for most investors. After all, investing is a trade off between growth and price as well as risk and return. The higher the expected future growth of a stock, the more likely it will be that investors have to pay a higher price (P/E) to get a piece of that future growth.

Consider Amazon (AMZN) with year-over-year revenue growth of about 29%. Clearly, it is a great growth story, and it can be all yours…