Asset Allocation

HAVE AT LEAST ONE ASSET THAT IS NOT CORRELATED TO THE STOCK MARKET ADD SOME GOLD TO YOUR PORTFOLIO LARGE AND ESTABLISHED GOLD ETFS: SPDR GOLD SHARES ETF (GLD) ISHARES GOLD TRUST ETF (IAU) CASH AND CASH EQUIVALENTS 3 MONTH TREASURY BILLS AND OTHER TREASURY SECURITIES CAN PURCHASE TREASURY SECURITIES DIRECTLY FROM U.S. […]

CHECK YOUR ALLOCATION TO STOCKS A big risk for pre-retirees and retirees is a major decline in retirement funds Lack of time to make it up More than one- third of baby boomers’ 401(k)s: +70% in stocks Almost one-tenth of baby boomers’ 401(k)s:100% in stocks Watch the related WEALTHTRACK episode.

START PREPARING YOUR PORTFOLIO FOR THE NEXT TEN YEARS Market leaders of one decade are frequently laggards of next and vice versa 2010s MARKET LEADERS (12/31/2009-12/31/2019) U.S. Stock Market: Large (S&P 500) +256.4% Mid (S&P 400) +230.6% Small (Russell 2000) +205.5% NETFLIX +4000% 2010s MARKET LAGGARDS (12/31/2009-12/31/2019) Emerging Markets (MSCI Emerging Markets Index) […]

REMEMBER TO REBALANCE INTO OUT OF FAVOR SECTORS. U.S. growth stocks, mega-caps, in particular, have dominated markets and portfolios for years Their powerful performance means they have outsized positions in indexes and portfolios Out of favor groups like small caps, cyclical stocks, value, and emerging markets have been beaten down and in many […]

LOOK INTO SOME BASIC HEDGING STRATEGIES TO CUSHION YOU FROM MARKET DECLINES: Market Neutral Funds – Vanguard Market Neutral fund, Morningstar Silver Medalist Cash & Cash Equivalents including U.S. Treasury Bills Gold Non-Correlated to Stock Market Provide Protection when markets get hit Watch the related WEALTHTRACK episode.

CONSIDER ADDING A SHORT MATURITY MUNICIPAL BOND FUND TO YOUR PORTFOLIO Short term muni fund attributes: Tax free interest Less sensitive to rising interest rates Flexibility to reinvest as rates rise Watch the related WEALTHTRACK episode.