- MAKE SURE YOU ARE TRULY DIVERSIFIED September 10, 2021
MAKE SURE YOU ARE TRULY DIVERSIFIED- Not truly diversified until you own something that makes you uncomfortable
- Uncomfortable usually means: unpopular, underperforming and cheap
- “Uncomfortable” assets today include:
- Value stocks
- Emerging markets stocks and bonds
- EXTEND YOUR INVESTMENT TIME HORIZON April 9, 2021
EXTEND YOUR INVESTMENT TIME HORIZON
PROBABILITY OF A LOSS FOR THE S&P 500
(Rolling Price Returns, Jan 1930 – Jan 2021)- 1 day investment = 46% chance of loss
- 1 year investment = 31% chance of loss
- 5 year investment = 19% chance of loss
- 10 year investment = 10% chance of loss
Source: Richard Bernstein Advisors “Insights” March 2021
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Continue reading → - MAKE SURE YOU ARE INVESTED IN SOME BENEFICIARIES OF AN ACCELERATING ECONOMY March 26, 2021
MAKE SURE YOU ARE INVESTED IN SOME BENEFICIARIES OF AN ACCELERATING ECONOMY
Laggards of last decade coming to life
- Value stocks should outperform growth
- Small-caps should outpace large companies
- International stocks, particularly in emerging markets should lead domestic
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Continue reading → - READ AGAINST THE GODS: THE REMARKABLE STORY OF RISK February 19, 2021
READ AGAINST THE GODS: THE REMARKABLE STORY OF RISK
Against the Gods: The Remarkable Story of Risk
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Continue reading → - AVOID MARKET TIMING February 12, 2021
AVOID MARKET TIMING
- Historical evidence shows market timing leads to significantly lower returns than buy and hold strategy
- Market timing also leads to increased volatility
- “…the volatility of investor returns is higher than the corresponding volatility in nearly all specifications.”
- “Specifications’’ considered: individual stocks, stock mutual funds and stock indexes in U.S. and major international markets
- Increase in volatility with trading is significant: 10-75% higher.
Source: “The Volatility of Stock Investor Returns” Ilia D. Dichev, Emory University, Xin Zheng, University of British Columbia
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Continue reading → - TAKE SOME RISK OFF THE TABLE February 5, 2021
TAKE SOME RISK OFF THE TABLE
- Market Conditions Flashing Caution
- Winning By Losing Less: A Tried And True Approach
- Trim Some Of Your Most Elevated Holdings
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Continue reading → - CONSIDER ADDING SOME DIRECT CHINESE EXPOSURE November 13, 2020
CONSIDER ADDING SOME DIRECT CHINESE EXPOSURE TO YOUR PORTFOLIO THROUGH AN ACTIVELY MANAGED CHINA FUND
Combined Chinese Stock Markets Second Largest in World
China’s A-share market:
- Chinese mainland-based companies trading on the Shanghai and Shenzhen exchanges
- Gradually opening up to foreign investors
More A-shares being included in major indexes including MSCI Emerging Markets indexes
Morningstar’s Gold and Silver Medalist China Region Funds
- Matthews China Investor MCHFX – Gold
- Matthews China Dividend Investor MCDFX – Silver
- Matthews China Small Companies MCSMX – Silver
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Continue reading → - GIVE YOUR FINANCIAL PLAN A COVID ANALYSIS November 6, 2020
GIVE YOUR FINANCIAL PLAN A COVID ANALYSIS
- WHAT PANDEMIC CHANGES CAN YOU APPLY TO YOUR LIFESTYLE?
- WHICH ACTIVITIES REALLY MATTERED, WHICH DIDN’T?
- WHICH EXPENDITURES WERE CRITICAL, WHICH WERE SECONDARY?
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Continue reading → - OWN GOLD AS A LONG-TERM PORTFOLIO DIVERSIFIER October 30, 2020
OWN GOLD AS A LONG-TERM PORTFOLIO DIVERSIFIER
STRATEGAS ANALYZED GOLD’S CORRELATION TO SEVEN ASSET CLASSES: LARGE CAP, SMALL CAP, INTERNATIONAL EQUITY, EMERGING EQUITY, AGGREGATE BOND, HIGH YIELD, OIL, U.S. DOLLAR
- HIGHER POSITIVE CORRELATIONS WITH ALL BUT ONE ASSET CLASS OVER LAST YEAR
- MUCH LOWER CORRELATIONS WITH ALL ASSET CLASSES OVER PREVIOUS TEN YEARS
- NEGATIVE CORRELATION WITH THE U.S. DOLLAR LAST ONE YEAR AND TEN YEAR PERIODS
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Continue reading → - ADD SOME BOND ALTERNATIVES TO YOUR PORTFOLIO October 23, 2020
ADD SOME BOND ALTERNATIVES TO YOUR PORTFOLIO
- Interest rates at historic lows
- Federal Reserve intends to keep rates low for the foreseeable future
POSSIBLE ALTERNATIVE INCOME SOURCES:
- Immediate and deferred income annuities
- Structured notes
- Dividend-paying stocks
- Maximizing social security benefits
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