Index To Portfolio Allocation Content

The art of portfolio allocation and portfolio construction have been debated for years. When it comes to prudent investing, however the science is very clear. In this area you will find a plethora of information concerning an academic and scientific approach to portfolio allocation and construction. There are number of subtleties that can often throw people off track, it's important you get educated about the realities of what the science teaches concerning how to pick a different investments for a well diversified global based portfolio.

Stock Picking: Confident Assertion or Financial Folly

Have you ever personally experienced a Confident Assertion within yourself or while observing others? I think it’s interesting in the area finance, how many Confident Assertions are made about the stock market. Then with hindsight become a bitter punch line, more so than a reality. We see this with recommendations from bullies on Wall Street; […]

From My Daily Journal

A trend we have noticed among baby boomers that we have recently coached up about global market returns is a lot of people exhibit concern and worried body language. When we discuss retirement planning and income needs, not only is there a high percentage of fear, but some of the people that I’m talking to […]

20 Investment Questions

What if everything you thought you knew about retirement planning and investing turned out to be incorrect, when would you want to know? Once you did know would you do something about it? The real battle for investors comes when they attempt to exercise discernment not knowing or understanding the mechanisms involved. In other words, […]

Are You Diversified?

When it comes to portfolio construction, as well as portfolio allocation, one of the biggest areas that investors do not understand is the concept of dissimilar price movement. A simple example would be the idea of owning umbrella companies and sun tan lotion companies. Umbrella companies, unto themselves may be volatile, and sun lotion companies, […]

Coin Flipping

There’s a saying I’ve heard through the years, “Nobody loses in Vegas “. This makes me think of a relatively new area of financial study amongst many of the top university finance programs. The area of study is designed to understand better about investor behavior and psychology. We have learned more about this particular field from […]

Interest Rates & the Price of Tea in China

Altoona, PA – The price of tea in China has been rising dramatically due to supply and demand. Some of the higher end teas are actually being hoarded after the price jumped 50% last year. Pu’er tea, a brew thought to have medicinal qualities, is grown in a remote southwestern province of Yunnan. At the […]

The Portfolio MRI

Is the goal of investing to get a yield/return? Specifically isn’t the goal of investing in the stock market to achieve a market rate of a return? The resounding answer is yes! In the last couple of decades, at various “Retirement Planning Today” classes that we conduct at local schools and universities, as well face to face […]

Evolution of Passive Index Investing!

Lewisburg, PA – Recently I was reading an article from John Bogle founder of Vanguard. John is well known in financial circles as one of the champions of passive investing using index funds. John came from a strong academic background; as such passive index investing makes total sense. He was one of many noted academic […]

Punxsutawney Phil Beats the Pros

Punxsutawney Phil is arguably the most well-known prognosticator in America. Groundhog Day was established in 1887, held annually on February 2nd.  A large crowd will wait with baited breath to see what this famous oracle is going to predict. At Gobblers Knob, at 7:20 am, the crowd will be awaiting the fame rodent’s prime indicator, a […]

The Boys of Summer: 2013 Market Returns

The Dow Jones Industrial Average (DJIA) index is up 13.8% half-way through the year.  The Standard & Poor 500 (S&P 500) index is up almost as much, at 12.6%, but the markets didn’t rise over the last six months in a straight line.   They rarely do. The markets were all over the place.  Sometimes up, sometimes down, especially over the last […]

Prudence not Prognostication

According to the Wall Street Journal, 21 of Fidelity’s Mutual Funds dumped nearly two million Facebook shares in June, less than two months after this “IPO (Initial Public Offering) of the Century” went public. Over that brief period of time, this wildly anticipated and super-hyped stock plummeted to almost half of its original price.

Do we own, or did we own Facebook shares in any of our investment portfolios? The answer is a resounding NO! As with any new public offering, Facebook does not meet the screening criteria of Dimensional Fund Advisors (DFA), the primary investment company we use in the development of our portfolios. To put it simply, at this stage of its corporate life, Facebook is just too risky for too many of our clients.

Facebook on Wall Street

Facebook! The IPO (Initial Public Offering) of the century! Facebook will “go public,” which means that you can buy its shares just like you can buy the stock of any other public company.

Lots of people who never invested before are calling financial advisors and stock brokers to buy shares, but is this a good idea? Does it make sense to buy individual shares of Facebook for your investment portfolio? A lot of people think so, because they are comfortable and they use the product every day.

The answer to the question as to whether or not you should buy Facebook depends on your objective. If you want to speculate with your money, you may want to take a chance. However, you have to be prepared to take a loss – perhaps a sizeable loss – if you are unlucky and the share price falls.

ABC…1 2 3 the Rules!

Check out this video of Mark Matson’s appearance on Fox Business last Friday. Mark is the CEO and President of Matson Money, the portfolio management firm we use, as well as my personal coach.

Bet it all on Black not Red

Last Friday marked the 10 year anniversary of Enron Corporation going bust.

On December 2, 2001, Enron filed for bankruptcy. In the late 1990’s and the very early 2000’s, you could hardly find a growth or a high tech mutual fund that did not list Enron as one of its top 5 holdings. Yes, it was sad when the company tanked, but it was devastating to the thousands of Enron employees who’s 401(k) Retirement Plans were brimming with shares of Enron Stock.

At the time, a little over 60% of Enron employees’ 401(k) accounts held the company stock. About 11% of that was the “company match” portion, but the rest was selected by the employees as a retirement plan holding. And essentially overnight, their plans for a peaceful retirement were shattered.

The Gift That Keeps on Giving

The holiday season is upon us, which means gift shopping, visiting family members and planning for end of the year events. It’s easy to get caught up in the holiday mayhem year after year, and before you know it too many years could pass while you put off planning for your financial future.

We live in a fast-paced, high-energy society that is constantly on the move and always looking for shortcuts. As a result, certain aspects of our lives are often put on hold until a more convenient time when life isn’t so hectic. The fact of the matter is that life is always busy and sometimes we have to force ourselves to pay attention and take care of the important things now, so that we won’t pay the price down the road.