Below the basic appreciation-stability allocation, rebalancing to targets among low-correlation asset classes is how you can get a rebalancing bonus.
Below these asset classes, sectors act as reminders of other aspects of your investment strategy.
Long/short strategies use the money from the stocks they have shorted to purchase extra stocks that they hope will go up.
David John Marotta was interviewed on radio’s Schilling Show discussing real estate and its importance in your total net worth.
REITs are one way to get some of the benefit of investing in real estate without as much of the risk.
The larger the spread, the more likely you should neither buy nor sell the asset.
Continually curating a list of low cost funds is valuable for long term investors.
“Historically there has been a wide variety of returns from US and International stocks, and when one does poorly often another does well.”
This is a summary of the six steps required to create a well-crafted investment plan.
Index investing seeks to track the return of a portion of the market. The opposite is active management.
We don’t recommend high yield bonds because they do nothing good for your overall portfolio.
Gold sounds like it should provide a safe haven of your purchasing power much more than it has actually done so.
While volatility can make a fund more attractive on the way up, it can also make a fund less attractive on the way down.
Adding a little bit of Chile to your portfolio can boost returns and reduce volatility.
We’ve written about how to select securities but in this article we are going to apply those principles to the process of selecting a specific fund for a specific sector of the economy.
While many investors say they want a low-correlation portfolio, they don’t want to actually experience a low-correlation portfolio.
October showed a sharp reversal of the movements of Resource Stocks.
This year, almost every U.S. asset class is in the red except for growth stocks. When the market is throwing punches, you need a tactical defense.
They are based on different indexes and have different expense ratios.
The connection between the price of oil and the price of oil companies is loose.
A high turnover rate is not something you want in a stock fund.
Your investment strategy is critically important but the implementation requires wise fund selection.
Should we have a “Free Countries Asset Class” or a “Foreign Stock Asset Class?”
There is no such thing as “over diversification.”
The process of defining your sectors is an attempt to identify the quintessential features of your strategy and formalize your selection criteria.
The greater the number of holdings the lower the turnover rate with one surprising exception.
Resource stocks represent one of the most interesting collections of diverse indexes as they do not always move in sync with one another.
The higher the correlation the greater the justification to put them in the same asset class.
It is good to take the two categories which are most similar and use them as underlying sector divisions within the same larger asset class.
Should they be over weighted in your portfolio?
Correlations over the past year have been very low, while correlations over the past 10 years have been higher.
“Lawsuit lenders do not advertise prices; they advertise convenience.”
“What do you think of the idea of Socially Responsible Investing (SRI) implemented simply by investing in something like the Domini Social Equity Fund (DSEFX)?”
“We still have plenty of problems, but we’re much better than France, Britain and Germany.”
“The most important thing I learned from my research was never to attempt to forecast the price of oil.”
At first glance, AUNZ did not have great returns in 2014. But is that the whole story?
An immediate fixed annuity is not an investment; it is an insurance product.
How is the change in the value of the dollar computed?
David Leinweber calls this technique, “torturing the data until it screams.”
There was an interesting article by Joseph Lisanti in Financial Planning Magazine entitled, “Should You Be Building Bond Ladders?” which read in part: As with many strategies, laddering works best for clients with sufficient assets to benefit fully from it. … Read More
Exchange funds, also know as swap funds, can provide investors with one highly appreciated security a way to trade it for an equivalently valued but more diversified portfolio.
Morningstar data for the 3-year annualized returns based on style boxes shows us three interesting lessons.
Many investors don’t appreciate asset allocation or understand intuitively how a diversified portfolio can exceed the sum of its parts.
The short answer is, “No.”
Russia is less than 6% of most emerging market indexes.
Unlike stocks, each bond contract has unique characteristics that define how repayment will occur.
Economic freedom enriches society, lifts the poor out of poverty and respects the agency and dignity of human choice.
The portfolio of the five freedom countries has an annualized return of 11.06% over the past decade.
Most financial planning articles about annuities pull their punches.
When the dust settles, can I really buy things for pennies on the dollar?
“Up until recently” annuities were a bad idea. They still are.
The documents where you can review 20 key issues looking for 10 red flags, or…