These articles chronicle some of the decisions and analysis of our Investment Committee.
We decided to add two new sectors after generating several hundred efficient frontier graphs of various United States classifications, industries, and sectors over a variety of time periods.
In this article, I am reviewing the quantitative measurements and performance metrics of Freedom Investing to see how its risk and return compare to the EAFE Index, its benchmark.
Hong Kong has always been an anomaly: a tiny, extremely free country with an expiration date in 2047.
As a result of new fund additions, we added five new country-specific funds to our Schwab Institutional Intelligent Portfolio asset allocations.
These findings together demonstrate how Economic Freedom seems to have been a valid factor for higher expected returns than investing in the EAFE Index alone.
As we are still in the midst of COVID-19 quarantines, we will have to wait to see what continuing or lifting restrictions actually does to companies, their expected earnings, and their market pricing.
Diversification means always having something to complain about. Recently, it has been energy.
For many whose Energy sector has experienced large losses, lowering your sector allocation might effectively mean holding onto the shares that you currently own without adding more.