Posts Tagged ‘Relative Strength’
The Death of 60/40: What’s Next?
Welcome to the last of the series “The Death of 60/40.” I have written in this series on how the 60/40 portfolio was justifiably a staple in investor portfolios based upon past performance. By any measure of financial history, the last four decades were one of the most significant periods of asset growth price ever.…
Read MoreCountry Bias Could Cost You the Gold
In the spirit of the Olympics, let’s discuss the idea of home-country bias as it relates to investing – particularly here in the United States. As part of what I do here, I’m often asked to review prospective clients’ portfolio holdings and allocations to provide feedback… And I must admit, it’s been a long time…
Read MoreThe Death of 60/40: Bonds
Welcome back to another week of “The Death of 60/40.” For the last two weeks, I’ve described how stock valuations play a role in defining future expected returns – and how today’s stock market valuations portend a forthcoming era of low returns. “But isn’t the reason we allocate 40% to bonds, is to help offset…
Read MoreWhat January Means for the Rest of 2022
Rather than guess at what might be happening in Global markets, let’s focus on what is happening – and ADAPT our portfolios accordingly. So, what do we know for sure today? We know January is in the books and it will go down as one of the more volatile beginnings to a year in recent…
Read MoreThe Death of 60/40: Starting Valuations Matter… A Lot (Part II)
Welcome to week four of the series The Death of 60/40. Today, we’ll continue to explore stock market valuations and what they portend. John Bogle, the late, legendary founder of Vanguard Funds used a simple formula to determine future market returns: Future Market Returns = Dividend Yield + Earnings Growth +/- Change in P/E ratio. …
Read MoreMARKETS IN TURMOIL
You fell for it didn’t you? The scary headline… works every time. I wrote that headline to save you the trouble of turning on your TV or following your favorite fear-monger. You’re welcome. Let me sum it up for you – the bulls are currently in trouble. There’s not a lot to be optimistic about…
Read MoreThe Death of 60/40: Starting Valuations Matter… A Lot (Part I)
Welcome to week three of my series, The Death of 60/40. The 60/40 Strategy is ubiquitous in the investment industry, but will likely fail to deliver future returns that are substantial enough to match most investor needs. Last week I demonstrated how the historical returns for this strategy have been very dependent on the economic…
Read MoreIt’s All Bullish for Energy and Financials
One of the most important themes these days is the rotation between growth and value stocks. To be clear, we’re not seeing a rotation out of stocks into risk-off alternatives, we’re seeing a rotation within the equity market. Groups like Energy and Financials have been breaking to new highs while growth and Tech indexes have…
Read MoreThe Death of 60/40: A History
Last week I introduced the idea that the traditional 60/40 Portfolio, a common approach among investors, was no longer going to serve investors as intended in the coming years. But in order to understand the future, we must first understand the past… Model portfolios that adhere to a specific asset allocation have often been used…
Read MoreIs Your Portfolio Ready for Higher Rates?
A lot of investors out there are in for a nasty surprise this year – especially index investors. Allow me to explain… 2022 is not 2019. It’s also nothing like 2020. This is a different environment and investors who hope to profit and outperform the market need to recognize and adapt to major shifts, particularly…
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