Commentary

3 Ways to Protect Clients' Investments This Year

Stock market participants for most of the past few years have eschewed protection. It was all about making large amount of gains. Almost every advisor lost clients from “cocktail party” conversations about who had made the most money recently.

Commentary

What Happened in the Surprising Equity Sectors of 2016

Energy was the best performing sector in 2016, up 27% compared to a positive 11% for the S&P 500.

Commentary

3 Ways You Can Reduce Retirement Readiness Risk

Since we just finished tax time (or filed an extension to delay facing the reckoning until October), it is a good time to review your tax-advantaged retirement accounts. Whether you have five or 35 years until think you will retire, you will want to make progress to full retirement readiness.
Commentary

ETFs … They Aren’t Your Father’s Oldsmobile

For 12 years, we used active asset management, that is, professional money managers and/or actively managed mutual funds. After the dot.com bear market in 2000, we became more and more dissatisfied with the cost and performance of professional money managers. After much research….
Commentary

Why Are All The "Oil Dividends" Missing? Where Have They Gone?

The advance release of the U.S. 4th quarter Gross Domestic Product (GDP) numbers was disappointing. After running at a 4%+ pace in the middle of 2014 and between 2% and 4% earlier last year, the fourth quarter 2015 GDP rose only 0.7%. Household consumption growth fell and non-residential business fixed investment declined after rising earlier in the year. Government spending has recovered but that was the only bright spot in the report.
Commentary

2016 Investment and Market Outlook

In the famous words of Warren Buffet, “be fearful when others are greedy and be greedy when others are fearful,” I think it would be easy to argue that investors are fearful, and therefore, they should be greedy (or buying stocks, not selling them). Currently, it seems as though oil prices are linked at the hip to the stock market.
Commentary

How to Show Valentine's Day LOVE with Precious Metals

After a rough start in the stock market this year, it is a relief that Valentine’s Day is around the corner. Market participants, including financial advisors’ clients, can use a little love about now. One of the most tangible ways that advisors can show affection to their clients at this time is to add precious metals exposure to their portfolios.
Commentary

A Market Correction Isn't Unusual…Look for Growth Later This Year

As we saw at the close of last week’s market and really the entire first half of January, 2016 has had a difficult beginning. There are a number of market concerns that have resulted in a correction in the first half of January and they revolve around.
Commentary

Advisors Need to Know How to Address Their Clients’ Market Concerns

Given the recent 10% stock market decline from the May 2015 highs, financial advisors are receiving calls and emails from concerned clients. If a client called me, my extended elevator speech would be...
Commentary

Safety First: Model Portfolios for the Coming Volatile Year

2016 will likely be a “Jekyll and Hyde” market. As financial advisors meet with their clients at or around the beginning of the new year, they should be mindful of these economic and market trends.
Commentary

Optimal Diversification Portfolio for Upcoming Interest Rate Environment

Historical patterns in interest rates leading to the current trend; Macroeconomic activity supporting future rising interest rates; Recommendations for optimizing client portfolios in such an environment
Commentary

Is Modern Portfolio Theory Dead?

A response to an article titled, “Modern Portfolio Theory is Dead.” The point is to simply ask which of the principles of Modern Portfolio Theory are no longer true. I think it’s more than obvious that these sound principles of investing that have been with us for more than 50 years will be here 50 years from now.
Commentary

Finding Appropriate Investment Strategies for Client Portfolios

Financial advisors (FAs) utilizing outsourced investment management processes face a significant number of choices. Recently, there were 675 exchange-traded fund (ETF) investment strategists in Morningstars database. How does one narrow the list of choices for further investigation effectively?
Commentary

Correlation Convergence is Hurting Your Investment Performance

Correlation is a statistical term that helps describe the relationship between two investments, enabling an investor to determine how similar two investments are to each other. By understanding the correlation between the investments in a portfolio, an investor can understand how likely it is, for example, for two or more of those investments to gain or lose money at the same time.