Category: Asset Allocation

The 3 crypto myths

Bitcoin is stalling, and the digital asset index has fallen from its all-time high.  “If you still think [Bitcoin] is a hedge against world events, or represents ‘diversification,’ you must stay out of finance and take up some other hobby, such as stamp collecting, bird watching, or something less harmful to yourself & others,” a…… Continue reading The 3 crypto myths

Let’s call crypto for what it is

Tether’s crime spree has continued unchecked. It has been fined $41 million by the Commodity Futures Trading Commission (CFTC) for falsely representing that its holdings were completely insured by US dollars at all times. As part of the same order, Bitfinex was fined $1.5 million for “illegal, off-exchange retail commodities trades” and for violating the…… Continue reading Let’s call crypto for what it is

How to Get a Grip on Mass Psychology in the Financial Markets of the World 

“Over and over and over again,” investors have historically followed the same psychological path.  In the financial markets, where investment frenzies can build up and then erase billions of dollars from investors’ portfolios, as was the case during the internet stock bubble of the 1990s and the real estate bubble of the mid-2000s, mass psychology…… Continue reading How to Get a Grip on Mass Psychology in the Financial Markets of the World 

The facade of an economy

As the pandemic ravaged the economy, the Federal Reserve, White House and Congress built a facade economy around the ailing economy. In the long run, it is sustainable economic growth that supports asset prices, but in the short run, investors may continue to be mesmerized by the illusion of a booming economy. As a percentage…… Continue reading The facade of an economy

When the next bubble pops

Many investors believe that the financial crisis of 2008 was the one.  When the stock market crashed in 2008, investment banks were also hit hard.  The gigantic Bond bubble, which presently stands at more than $100 trillion, is the greatest financial bubble in history.  The Tech Bubble, by comparison, was projected to be worth roughly…… Continue reading When the next bubble pops

Gravity is the one thing stocks and bonds have in common 

Prior to 2000, when the Fed began cutting rates to save the markets, equities and treasury bond interest normally went in opposite directions. It wasn’t until around 2000 that stocks and treasury interest began to move in lockstep in the same direction. Source: Lance Roberts, Real Investment Advice  _________________________________ If the Fed simply ended its…… Continue reading Gravity is the one thing stocks and bonds have in common 

A Week on Wall Street

The market was speculative, but the Fed is tapering bond purchases, futures are predicting three rate hikes, and inflation is surging. There are concerns about a lack of breadth in the markets as of late. During late-stage bull markets, investors take on a lot of leverage to chase returns. Margin debt may fuel the bullish…… Continue reading A Week on Wall Street

Asset Allocation For All Markets (eBook)

Suppose you are like many investors, then you have livedthrough at least one financial crisis. I lived through the 2000-2002 stock market downturn as Director of Asset Allocation, responsible for the asset allocation advice of 6,000 registered representatives. In the 2008-2009 downturn, I was a co-portfolio managermanaging $30 billion in asset allocation fund assets. As…… Continue reading Asset Allocation For All Markets (eBook)

Current Asset Allocation

Stocks with low CAPE values result in higher returns and vice versa. The long-term view of the stock market reflects extended periods of surge and stall. These periods, known as secular bull markets and secular bear markets, are not optical illusions; rather they are extended periods when market valuations (i.e. price/earnings ratios: P/Es) are either…… Continue reading Current Asset Allocation

What do I offer

What do I offer? There are more mutual funds and exchange traded funds today than there are publicly traded stocks. It’s unnecessary and confusing to investors. I developed a concentrated investment strategy with greater growth potential than 100% stocks and/or your typical strategic asset allocation strategy. How will it make your life better? You’ll have…… Continue reading What do I offer

The flaws with the most widely used strategy for investing

Standard asset allocation practice (“strategic asset allocation”) produces unstable results. Remember Harry Markowitz, father of Modern Portfolio Theory which strategic asset allocation is based on, describes two stages in his Nobel award winning paper: The first stage starts with observation and experience and ends with beliefs about the future performances of available securities. The second…… Continue reading The flaws with the most widely used strategy for investing

Disclaimer

This website contains index mutual and exchange traded fund names whose sole intent is representation of the associated asset class. The information on this site is for personal and informational purposes only, and the user of the information contained assumes the entire risk of any use made of the Information. The Information is not an…… Continue reading Disclaimer