asset classes

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Should Correlations Drive Your Investment Decisions?

Do stock market correlations matter? Statisticians use correlations (or cross-correlation) to measure the relationship between asset classes or investments. The general idea is to better understand the similarity or dissimilarity in how investments perform against each other and to build a portfolio of investments that can benefit. The CBOE S&P 500 Implied Correlation Index (ChicagoOptions:^KCJ) …

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Grading Retirement Plan

(Podcast) What’s the Right Way to Measure Your Portfolio’s Progress?

Can you believe it? The year 2015 is already half over. As second quarter investment account statements arrive, now is the time to un-distract yourself and focus on what’s impacting the performance of your money. Get Your Portfolio Checklist Why do so many people ignore their investment portfolio? Is it because they’re afraid to look inside? …

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3 Symptoms of a Poorly Diversified Portfolio

What is diversification? How is it obtained? Why does it matter? In his book Capital Ideas Evolving, the great Peter L. Bernstein put it this way: “The future is always uncertain. Consequently, risk management is fundamental to the whole process. Indeed, risk management is the only part of the process under the control of the investor. …

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Here’s Why a Total Market Approach is Better vs. the S&P 500

Last year, Warren Buffett said he would direct the trustees of his estate to put 90% of his remaining assets in an S&P 500 index fund and 10% in short-term government bonds.  Is there a better approach for individual investors to follow? Although popular benchmarks like the S&P 500 get most of the headlines, broader funds like …

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Millenials

A Financial Roadmap for Millennials

Being a millennial means you’re young. And while it’s great to have youth, it’s vanity unless you put it to good use. It’s been said that a good plan today is better than a perfect plan tomorrow. This is particularly true when it comes to saving and investing. The sooner you get started, the better. …

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How Long Will it Take Before Bond Yields Hit Bottom?

A skilled magician knows the art of distracting the audience is just as important as mastering the trick. And the magicians on Wall Street have once again successfully deflected the investing public’s attention to U.S. stocks near record highs. You see, Wall Street doesn’t want to focus on the reality that long-term U.S. Treasuries have crushed …

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Portfolio Report Card: A $569,742 Retirement Plan with Sluggish Performance

Why do we take unnecessary risk with our investments? Is it because we’re gluttons for punishment or is it because we’re incredibly brave? Often, it’s because we’re simply distracted or unaware. Although the S&P 500 is still hanging on to its year-to-date gain, stock market volatility or “VIX” has advanced more than 30% over the …

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