Unprecedented times call for a true paradigm shift from the outdated autopilot approach of annual rebalancing of 80% stocks and 20% bonds. Both stocks and bonds have reached such elevated levels, that other assets are… Read More »Time to Reconsider the Long-Term Portfolio Allocation?
2016 began with a sharp spike in volatility with investors concerned the bull cycle could be over. Now is more than ever a great time to consider value stocks to remove risk in your stock… Read More »Yet Another Reason to Pay Attention to Value Stock Models
It’s been six months and it is time to check in on the performance of the Value Portfolio. Heck, with all of the market volatility in the last two weeks, perhaps it makes sense to… Read More »Measuring Performance of Dividend Champions Selections
As a follow up to my previous analysis of the US stock market’s high valuation, I thought I would demonstrate how a passive index funds investor can employ a defensive stock market rebalancing approach this… Read More »A Value Investor’s Approach To Rebalancing Out Of U.S. Stocks with Index Funds
I provide four approaches to objectively evaluate the U.S. stock market. My insights could surprise you. Consider yourself warned. Click here for the full story!
I hope you enjoyed your time at the beach! Have you rebalanced your porfolio yet? Check out Seeking Alpha or here if you are interested in reading a nonparametric study on U.S. industry sectors and their… Read More »Rebalancing for 2015: Which Industry Sectors to watch out for?
Someone came across my blog and asked me this very question about market timing. I tried to do my best to answer it. Let me know your thoughts and comments: From a total market standpoint,… Read More »Is the US Stock Market Value at its Peak?
The median expense ratios for all U.S. equity and bond funds have been declining steadily since the inception of (and growing popularity of) index funds. According to analysis provided by ICI, median expense ratios have continually trended lower since 2000 (see Chart 1). The median expense ratios for index bond funds and index equity funds are 0.11% and 0.12% respectively. Interestingly, bond index funds have expense ratios that are still 50 basis points below the expense ratio for actively managed bond funds. Stock index funds have expense ratios 75 basis Read More »The Significance of Fund Expense Ratios
Return on investment has varied dramatically across asset classes. Cumulative total return on investment of $1.00 in stocks have outperformed those for gold by over $480K in the 206 year period from 1802 to 2008!… Read More »Return on Investment for Various Assets
Understanding the basics of asset management is a necessity to building personal wealth. Individual investors can make irrational and costly decisions that otherwise could have been avoided. Too often, people are able to prudently save excess cash to invest, but having no experience or interest in making an educated decision, they end up making foolish mistakes. Below is a list of the most common mistakes:
- Holding too much cash.
The first mistake is remaining too risk averse and never building a portfolio at all. While it is strongly recommended to create an emergency fund in addition to having liquidity available for expenditures, at some point you need to put your excess cash to work and begin asset management. Prudent budgeting should help you determine how much to hold in reserve and when to look into assets with higher rates of return.Read More »Common Mistakes in Asset Management