Asset Allocation
MAKE SURE YOU ARE INVESTED IN SOME BENEFICIARIES OF AN ACCELERATING ECONOMY
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
READ AGAINST THE GODS: THE REMARKABLE STORY OF RISK
READ AGAINST THE GODS: THE REMARKABLE STORY OF RISK
AVOID MARKET TIMING
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
OWN GOLD AS A LONG-TERM PORTFOLIO DIVERSIFIER
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
CONSIDER SOME “HOMEBODY” INVESTMENTS
CONSIDER SOME “HOMEBODY” INVESTMENTS
Rosenberg thesis: Transitioning permanently to more frugal “homebody” economy
“HOMEBODY” BENEFICIARIES include:
- Home OfficeTechnologies (cloud)
- Telecommunications
- Utilities
- Food Suppliers
- Diversifiers include:
- – Gold
- – Treasuries
Connect
Connect with us on the following social media platforms.