This is an excerpt from the video episode of Stop Buying Physical Gold! Here’s Why Gold ETFs are the Better Choice on ETFguide TV. Hey everybody, I’m Ron DeLegge with ETFguide. And in this episode, we’re gonna talk about why owning gold ETFs is the better way for investing in gold versus owning physical gold. …
Stop Buying Physical Gold! Here’s Why Gold ETFs are Superior Read More »
The energy market has seen some record breaking moves in 2020. Never mind how the May 2020 crude oil contract went $37 negative, the magnitude of the ups and downs has been off the charts. In our latest analysis at ETFguide TV, John Love the CEO at USCF Investments provides historical context. Love points out …
Portfolio diversification is an investment strategy designed to limit risk by spreading money across multiple asset classes and securities. Most financial literature along with your local financial advisor will agree that diversifying your investments is a prudent thing. But while diversification may seem like a straightforward process, it isn’t. And some investors and their advisors …
The difference between well-built and poorly designed buildings can be strikingly drastic. Take for example, I.M. Pei, the Chinese-American architect, who is a legend in his profession and has won many prestigious awards, including the Pritzker Prize. Among all the illustrious structures he’s designed, the Rock and Roll Hall of Fame in Cleveland, OH is the …
If you asked a thousand different people about the key factors that should drive their investment choices, you’re bound to get a thousand different answers. Some, for example, might be inclined to argue that U.S. stocks (NYSEARCA:SCHB) have increased for eight consecutive years and there’s no reason to make any portfolio changes because stock prices …
The framework for an architecturally sound investment plan is to have a core portfolio built upon core asset classes. Like the foundation of a building, your portfolio’s core must be built on a solid and stable footing. While there are many things within your investment plan that are optional, this isn’t one of them. Before …
This year’s presidential election has been so drenched with public bickering and controversy, it’s left very little airtime for the multi-million freight train that’s on course to crash everybody’s party: U.S. public debt. In July, the Congressional Budget Office (CBO) reported that federal debt held by the public skyrocketed to 75% of U.S. GDP compared to …
This Multi-Trillion Dollar Freight Train is Due for Arrival Read More »
What’s more important? Making gains in the stock market or preventing losses? Before answering that question, let’s list a few common fallacies about risk: • The full spectrum of market risk can be accurately defined in a single magic formula or statistic • Long-term investing always guarantees success, so go ahead and take all the …
If You’re Not Preventing Stock Market Losses, You Better Start Now Read More »
Imagine hiring a builder to construct you a home. You tell the builder how you want the home to look and you tell them about all your desired features. Instead of showing you a blueprint, the builder starts construction and a short-time later, your house is completed. But there’s a very big problem: The home’s final design is nothing like what …
DON’T Invest a Single Dime Without this Crucial Document Read More »
Is the risk character of your investments compatible with you? If not, it’s a telltale sign that your investment portfolio is seriously flawed. Frequently, these risk incompatibilities are camouflaged by an uptrending stock market. But when the market reverses and volatility (NYSEARCA:VXX) jumps, the problems of investment portfolios with unsuitable risk levels becomes apparent. My latest Portfolio …
Portfolio Report Card: A $1.75 Million Account Sunk by Heavy Cost Read More »
I was recently asked by a reader named M.M. about the benefits of investing in market neutral funds. Equity market neutral funds hold long/short stock positions and aim to capitalize on investment opportunities in a specific group of stocks while keeping neutral exposure to broader groups of stocks either by sector, market size, or country. (Audio) …
It’s commonly and incorrectly presumed that people with large investment portfolios are smart investors. But as counterintuitive as it may sound, this false presumption is simply not true. How do I know? Because I’ve analyzed and graded many multi-million dollar investment portfolios ($27 million is the largest one I’ve graded so far this year) using …
Portfolio Exam: A Hyper-Aggressive $1.29 Million Portfolio with Flaws Read More »
People do the darndest things. For example, they put their investments in places where they don’t belong. This is a common problem suffered not just by retail investors, but by experienced professionals who are hired to advise them. In each case, there’s a poor understanding about the basic elements of a well-built portfolio. (In extreme cases, there may be knowledge of …
A well-built investment portfolio always takes deliberate steps to minimize the threat of taxes to the greatest degree possible. I know it sounds complicated, but it’s not. Aside from practicing smart asset location and owning investments that designed to reduce tax liabilities (see index ETFs), there are other simple ways to reduce the tax bite. And …
Today, there is a singular focus by certain investors on minimizing investment cost. In their world, cost is the only thing that matters. Unfortunately, this exceedingly narrow view fails to acknowledge that curtailing your portfolio’s cost is only part of the overall puzzle for obtaining satisfactory investment results. What do I mean? Think about it …
Portfolio Report Card: Analyzing a Frugal $1.15 Million Account Read More »
Multi-asset class funds and ETFs are designed to invest across various asset classes like stocks, bonds, commodities, real estate, and other alternatives. In the ETF marketplace, examples of these types of multi-asset class funds are the Multi-Asset Diversified Income ETF (NYSEARCA:MDIV), iShares Core Growth Allocation ETF (NYSEARCA:AOR), and the iShares Morningstar Multi-Asset Income ETF (NYSEARCA:IYLD). (Audio) Portfolio …
Q&A: Is Buying a Multi-Asset Fund Near Retirement a Good Idea? Read More »
Your investment portfolio is nothing more than a reflection of who you are. In other words, it’s a personal statement about how you approach financial risk, investment cost, diversification, and taxes. If you’re disorderly when it comes to these aspects of your investment plan, the unwelcome consequences will be a disorderly portfolio with disorderly results. …
Portfolio Report Card: A $850,613 Portfolio with Sluggish Results Read More »
Market correlations explain to us the similarity in performance and behavior by different types of assets. For investors, correlation comparisons might be between two commodities (NYSEARCA:DBC), two stocks, a stock and a commodity, or even a stock and an index. Should correlations be used to make investment decisions? Over the past three years, the Technology Sector SPDR ETF …
Should You Make Portfolio Decisions Based Upon Historical Correlations? Read More »
Q. How many ETFs do I need to own to have a balanced and diversified portfolio? – C.L. in Plano, TX A. One of the common investing fallacies is that the number of holdings within your investment portfolio should increase as your portfolio’s value increases. This is wrong. Why? Because having a well-rounded investment portfolio is never …
Q&A: How Many ETFs Do You Need for a Well-Rounded Portfolio? Read More »
A good investment plan today is better than a perfect plan tomorrow. Unfortunately, most people don’t have either. What about you? Building a healthy portfolio with sustainable and satisfactory performance doesn’t happen by accident. It takes planning and having the proper framework. Phase 1 The process of assembling and managing your investments is comparable to the construction of a building. Before …
Your Investment Portfolio’s Foundation: Where Should it Be Built? Read More »