stocks

Portfolio Report Card: A $294,439 Retirement Plan with a Tax Threat

Some of us got started late at saving and investing for retirement. And while the financial services industry enjoys browbeating people who lack discipline, got distracted or got into trouble and temporarily paused saving money, I think empathy is due when empathy is warranted. This week’s Portfolio Report Card is for K.E., a 60-year old …

Portfolio Report Card: A $294,439 Retirement Plan with a Tax Threat Read More »

Portfolio Bits: The Whole Pie or the Pieces?

It’s been said that complexity is the enemy of execution. This is true with most things in life, including how you arrange your investments. An optimally performing and easy to manage investment portfolio might be the ultimate goal, but it’s not so simple. (Audio) Listen to Ron DeLegge @ The Index Investing Show The larger an investment portfolio becomes …

Portfolio Bits: The Whole Pie or the Pieces? Read More »

Binocular Man Searching

Long-Term Investing: A Cautionary True Life Tale

The financial services industry’s bias toward long-term investing as the magic formula to the problems that face the individual investor is wrong and misleading. For example, illustrating unrealistic long-term time horizons of 100 or 200 years of equity returns (NYSEARCA:VTI) to prove that we should all be long-term investors is a common practice among both academicians and …

Long-Term Investing: A Cautionary True Life Tale Read More »

Binocular Man Searching

Q&A: How Many ETFs Do You Need for a Well-Rounded Portfolio?

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 »

Your Investment Portfolio’s Foundation: Where Should it Be Built?

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 »

What’s Your Income Plan?

For just the fourth time in 50 years, the S&P 500’s (NYSEARCA:IVV) dividend yield was briefly more versus 10-year U.S. Treasuries (ChicagoOptions:^TNX). It’s another testament to the difficult climate facing bond investors (NYSEARCA:BOND) who want to generate a respectable level of income. For good reason, more people are employing alternative income strategies like selling covered calls. The covered call technique (also …

What’s Your Income Plan? Read More »

Super Bowl Indicator: Bullish or Bearish?

Sometimes the quirkiest predictors of stock market performance are the most accurate. And for whatever reason, the Super Bowl Indicator fits that precise description. It has scored an accuracy ratio of 81% over the past 48 Super Bowl games. How does it work? If the NFC team wins, the U.S. stock market (NYSEARCA:DIA) will end the …

Super Bowl Indicator: Bullish or Bearish? Read More »

Portfolio Management 3

Portfolio Report Card: A Misaligned $182,000 Retirement Plan

What does the optimal investment portfolio look like? Is it the portfolio with the hottest stocks and ETFs? Is it the portfolio managed by famous money managers? Actually, the optimal portfolio is perfectly compatible with you. Furthermore, optimal portfolios deliberately minimize investment cost and taxes, diversify across a variety of asset classes, and deliver investment …

Portfolio Report Card: A Misaligned $182,000 Retirement Plan Read More »

Lower Energy Stocks

Have Energy Stocks Finally Bottomed?

Energy stocks slid 8.7% last year and was the only S&P 500 (NYSEARCA:VOO) industry sector to lose value in 2014. Have energy stocks (NYSEARCA:XLE) really bottomed? FactSet reports: “Despite declining oil prices over the past few months, industry analysts are most optimistic regarding the Energy sector in 2015, based on their current ratings and target price estimates. In …

Have Energy Stocks Finally Bottomed? Read More »

Race Cars 2

Portfolio Report Card: A $496,000 Investment Plan with an Adventurous Flair

All investment portfolios are comparable to a novel, where each individual chooses their own personal genre and classification. If your investment portfolio was a novel, what genre would it be? Adventure? Comedy? Drama? Mystery? Horror? My latest Portfolio Report Card is for MD in Temecula, CA and he’s got an adventurous portfolio. He’s also 61-years …

Portfolio Report Card: A $496,000 Investment Plan with an Adventurous Flair Read More »

Ocean Waves

Is Rising Stock Market Volatility Bullish?

When stocks go up volatility goes down and vice versa. While this historically inverse relationship plays out most of the time, there’s been a significant disconnect as of late. The chart below illustrates this disconnect. As you can see, over the past three-months, the S&P 500 (black line) has gained around 2.7% yet the S&P 500 volatility …

Is Rising Stock Market Volatility Bullish? Read More »

Is it Time for Stock Market Investors to Play Defense?

The U.S. stock market has gained five consecutive years and 9 out of the past 10 years. Put another way, an offensive oriented aggressive approach toward stocks has worked like a charm. Is it time for investors to start playing defense? (Audio) Listen to Ron DeLegge @ The Index Investing Show The consumers staples sector (NYSEARCA:XLP) …

Is it Time for Stock Market Investors to Play Defense? Read More »

Binocular Man Searching

Prioritize This Task Before Buying Your Next Individual Stock

The age of not having a believable investment plan is over. But that still hasn’t solved the problem of having too many investment choices. That leaves the prudent investor with no other option but to establish a logical framework that increases the odds of investment success. What should you do before buying your next individual stock? …

Prioritize This Task Before Buying Your Next Individual Stock Read More »

Portfolio Chart 1

3 Tips for Trading Leveraged ETFs

If you think the stock market is a volatile place, you ought to get a load of ETFs that use leverage. From Sep. 15 to Oct. 16, the ProShares Ultra 2x Dow 30 Fund (NYSEARCA:DDM) collapsed 10.22%. But from Oct. 16 through Nov. 14, DDM soared 19.50%. That’s a breathtaking swing of 29.72% from negative …

3 Tips for Trading Leveraged ETFs Read More »

Roller Coaster Ride 2

Are Momentum Stocks Losing their Momentum?

Are momentum stocks losing their luster? High flying momentum stocks like Tesla Motors (NasdaqGS:TSLA), Twitter (NYSE:TWTR), and GoPro (NasdaqGS:GPRO) have experienced sharp pullbacks over the past few months. Tesla and Twitter have fallen below their 50-day and 200-day moving average while GoPro now trades below its 50-day moving average. What’s next? (Audio)Listen to Ron DeLegge @ The Index Investing …

Are Momentum Stocks Losing their Momentum? Read More »

Lagging Small Cap Warning Sign For Stock Market?

Did You Miss This Year’s Biggest Investment Themes? Here’s Four

Keeping track of global macroeconomic trends is a daunting task. For that reason, each month we organize and rank the key market trends in our Mega Investment Theme Report by order of significance. Here’s a few of this year’s biggest themes: Commodities Get Crushed All of the hyper-inflationary dreams of commodity bulls have been shot dead. As a …

Did You Miss This Year’s Biggest Investment Themes? Here’s Four Read More »

Portfolio diversification

Facts and Fiction about Portfolio Diversification

Let’s examine the facts and fiction about portfolio diversification. Fiction: A 60/40 stock and bond portfolio (Nasdaq:VBMVX) is fully diversified. Fact: Only investment portfolios with market exposure to all the major asset classes –  not just stocks and bonds (NYSEARCA:BND) – but  real estate, commodities, and cash too are fully diversified. That means a 60/40 stock …

Facts and Fiction about Portfolio Diversification Read More »

Stock ETFs Rake in Assets

Stock ETFs Keep Vacuuming in Assets

Never mind how U.S. stocks are at all-time highs.  People are pouring more money into stock tracking ETFs. The top three ETFs by asset inflows over the past week were the iShares S&P MidCap ETF (NYSEARCA:IJH), iShares S&P 500 ETF (NYSEARCA:IVV), and the PowerShares Nasdaq 100 ETF (NasdaqGM:QQQ).  IJH raked in almost $1 billion while QQQ …

Stock ETFs Keep Vacuuming in Assets Read More »

Race Cars 2

These 2 Categories are Beating the S&P 500

While Wall Street and the mainstream media is enamored by one all-time high after another in the U.S. stock market (NYSEARCA:DIA), other key investment themes have largely been ignored or forgotten. If the S&P 500 (SNP:^GSPC) stays the same or edges higher, it’ll mean five consecutive yearly gains and nine gains out of the past 10 years. …

These 2 Categories are Beating the S&P 500 Read More »

0

Your Cart is Empty