Asset Allocation

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

Watch the related WEALTHTRACK episode.

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

Watch the related WEALTHTRACK episode.

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

Watch the related WEALTHTRACK episode.

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

Watch the related WEALTHTRACK episode.

CONSIDER SOME “HOMEBODY” INVESTMENTS

June 20, 2020

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

Watch the related WEALTHTRACK episode.

Back to Top