In the News
John Riley, Cornerstone's Chief Strategist, has been sought out by various media outlets for his unique and direct opinions on the market. Below are several samples of quotes by John Riley. As you will see, Cornerstone was concerned about the markets and debt long before the majority saw what Mr. Riley saw as obvious.
The Wall Street Journal - Advisor Goes ‘Green Acres’ - 06/10/2014 - Just before the financial crisis, Rhode Island-based adviser John Riley was living in a three-bedroom, raised ranch on a quarter acre with his wife and five children. MORE
Investment News - Sting Joins the chorus of wealthy who won’t leave fortunes to kids; Everything they do is magic, but their children will have to work - 06/30/14 - …"I'm seeing more parents setting up their own charitable giving vehicles and letting the kids know that this money is not going to them," Mr. Riley said. "They are telling them that they had better learn to make their own way."… MORE
Leveraged Financial News - High Yield Funds Bouncing Back - 07/29/13 - …Riley warns investors, however that current investment trends could be creating another bubble ready to burst. He notes that no one expected the commercial paper market to seize up several years ago, but it did, leaving companies and investors in the lurch. "Memories are short... these markets can lock up on you," he said. "Right now there's a lot of liquidity but ... you just don't know. These types of things can happen." … MORE
Leveraged Financial News - High Yield ‘Bondletting’ Will Yield to Calm - 07/01/13 -… "A perfect storm is brewing for the junk bond world," John Riley, president and chief strategist with Dallas-based Cornerstone Investment Services, said in an email. "With volatility and rising rates there could be a wave of issuance, as long as the mutual funds have the cash they'll be buyers. If mutual funds are hit with a lot of redemptions they will not have the money to buy. Issuers then may raise rates to attract the real junk buyers. No one's going to want to be that guy."… MORE
Investment News - Financial Literacy in Focus as Industry awaits SEC study - 07/09/12 - …Savvier investors certainly would make better clients, according to John Riley, president of Cornerstone Investment Services LLC, who said that investors too often are swayed by the recommendations of television pundits and other cacophony surrounding the markets. "They need to sort through what's baloney and what's a real story," he said… MORE
Investment News - Novel Investment Contract Features Automatic Charitable Giving - 08/12/11 - Cornerstone Investment Services LLC has created an investment contract that allows clients to contribute to their favorite charities automatically, making it easier — and more appealing — for clients to contribute. MORE
San Antonio Express-News - Help Wanted - 06/25/09 - …The credit excesses, beginning in the 1990s and continuing throughout this decade have resulted in a "mountain load of debt." John Riley of Cornerstone Investments has cited figures about overall debt to GDP (gross domestic product) which should concern all of us. In 1981, when President Ronald Reagan assumed office, debt to GDP - that is, consumer debt, corporate debt, and government was 91 percent. In 1930, at the time of the Great Depression, it was 300 percent. At the end of 2008, it was nearly 400 percent. That is way too much debt to get this economy moving again. Moreover, rather than reducing government debt, the Obama administration is piling on more government debt with a stimulus package… MORE
Toronto Globe and Mail - 10/31/08 - But John Riley, Texas-based president and chief investment officer of money management firm Cornerstone Investment Services, warned that bear markets have a way of preying on investor optimism – and that could be what has been happening over the past three days.“A bear market's purpose is to hurt as many people as much as possible. And bear market rallies lure in people who still have hope,” he said. “We still have hope in this market. “When hope is gone, that's when you have the bottom of the bear market.”
Toronto Globe and Mail - 07/18/08 - Are there any winners in a financial market Armageddon? John Riley thinks there could be. And it turns out that we Canadians could be sitting in a (relatively) good place should the roof cave in. Mr. Riley, president and chief investment strategist at Rhode Island-based financial advisory firm Cornerstone Investment Services, published a report yesterday entitled “Worst Case Scenario,” which revolves around a major meltdown in the U.S. banking sector.
San Diego Union Tribune - 01/10/06 - John Riley, who heads Cornerstone Investments in Rhode Island, said a slowdown in the housing market could contribute to eroding consumer confidence and spending, which should end the rally.
"Our position is, the economy has been fueled by debt – consumer debt, mortgage debt," he said. "As soon as the debt flow curtails and people stop using their homes as ATMs, that's going to have an impact on the economy."
Hispanic Business - 03/05 - But investors should remember to play defense first. “Our first priority is managing risk,” says John Riley, CEO of Cornerstone Investment Services in Providence, Rhode Island. “For every investment within a portfolio, we have an exit strategy. We have multiple ‘if, then’ scenarios already planned out. … We already have a strategy in place and are able to anticipate instead of react to events and news.”
San Diego Union-Tribune 01/05 - “(Fed Chairman) Alan Greenspan did a good job of keeping a lid on the problems. But now he’s painted himself into a corner. He may be forced to raise interest rates to protect the dollar at exactly the time that the economy needs him to lower interest rates to keep the recovery going.”
Providence Business News 0 5/04 - Investors should investigate any company that goes public to make sure it is as successful as it claims to be, Riley said. “(investors should ask themselves) if a company is doing so well, why does it want to share with me?”
San Diego Union-Tribune 01/03 - John Riley, head of Cornerstone Investment Services in Rhode Island, foresees a long-term shift to commodities by investors disenchanted with the stock market. "The stock market's still overvalued," Riley said. "…the real bull market in the next few years is going to be in commodities."
Copley News Service - 01/08/03 - The dangerous thing is that some high-yielding stocks right now are paying out dividends higher than their earnings," said John Riley, head of Cornerstone Investments in Rhode Island. "Haven't we learned anything from the 1990s?
Investment Advisor Magazine - 12/02 - …it has been consumers’ willingness to take on more debt that has “kept the economy creeping along,” he says. Like other pundits, Riley believes it’ll take at least a couple of years before the markets turn around.
Journal of Financial Planning - November 2002 - Is Alan Greenspan Rewriting History?
Riley calls Alan Greenspan’s recent Jackson Hole speech an attempt to protect his legacy and take the blame off his shoulders for the bubble that developed under his watch. Greenspan, says Riley, attempted to rewrite history when he says the Fed didn’t have the data to determine if there was a bubble or not and says that no one had the data.
Is that so?” asks Riley.“We had the data. Is Chairman Greenspan ready to admit that a small money management firm in Providence, Rhode Island, had better data than the Fed? Because we knew there was a bubble in 1999. He also said there was nothing the Fed could do about the bubble even if they saw one.This simply isn’t true. Had they raised rates earlier, changed margin requirements or even influenced changes in tax rules, the bubble could have been taken under control and the resulting fallout from the deflating of a much smaller bubble would be much less than we are seeing now.”
The Denver post - 08/18/02 - “We’re looking at an economic heart attack in front of us,” said John Riley, president of Cornerstone Investment Services, a money management firm in Providence, R.I. “We’re faced with owning up to the excesses of the late 1990s.”
USA Today - 04/17/00 - This slide could last for years, says John Riley, president of Cornerstone Investment Services. "This bear must erase the previous bull's years of excess," he says
The Toronto Globe and Mail 4/19/00 - “Most bull-market-ending bear markets last for years, they are not quick, one-month or two-month events.”
National Post - 09/04/99 - But most money managers and advisors show a heavy bias toward bullishness, says John Riley at his Web site www.cornerstoneri.com /whosays.htm. While he concedes no one can predict the market on a day to day basis, 'good advisors will recognize overvaluation when it stares them in the face, (and will hopefully protect their clients.)'