February 11, 2016

Investments

Investments are at the core of what we do, and here is some commentary on various aspects of the financial markets.

Marotta’s 2016 Vanguard Gone-Fishing Portfolio

Marotta’s 2016 Vanguard Gone-Fishing Portfolio

Here is a review of Marotta’s 2015 Vanguard Gone-Fishing Portfolio and a description of our changes for 2016.

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Marotta’s 2016 Vanguard Gone-Fishing Portfolio Calculator

Marotta's 2015 Vanguard Gone-Fishing Portfolio Calculator

If you are using Vanguard, we have created a gone fishing portfolio using only low-cost Vanguard mutual funds to help save money on transaction costs.

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Marotta’s 2016 Gone-Fishing Portfolio

Gone Fishing

The gone-fishing portfolio provides suggested asset allocations for investors up to age 70 and up to $1 million.

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Marotta’s 2016 Gone-Fishing Portfolio Calculator

The fishes

A gone-fishing portfolio has a limited number of investments with a balanced asset allocation that should do well with dampened volatility.

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Why Invest In Chile?

Why Invest In Chile?

Adding a little bit of Chile to your portfolio can boost returns and reduce volatility.

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Mailbag: Stop Before Using Stop Orders

Mailbag: Stop Before Using Stop Orders

We do not recommend using stop loss orders. Now, it appears that the New York Stock Exchange agrees.

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A Fund Selection Case Study

A Fund Selection Case Study

We’ve written about how to select securities but in this article we are going to apply those principles to the process of selecting a specific fund for a specific sector of the economy.

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Investors Want Non-Correlated Assets Until They Experience Non-Correlation

Investors Want Non-Correlated Assets Until They Experience Non-Correlation

While many investors say they want a low-correlation portfolio, they don’t want to actually experience a low-correlation portfolio.

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Is There A Christmas Rally In the Markets?

Is There A Christmas Rally In the Markets?

While Santa Claus usually brings something positive for the markets, it isn’t enough to worry about jumping in and out of your investments.

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Don’t Mistake Volatility For Loss

Don't Mistake Volatility For Loss

“Nothing has provided greater risk control over the long term than equities, which are historically without principal risk over 30-year periods…”

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An Immediate Annuity Is Probably Never The Right Answer

An Immediate Annuity Is Probably Never The Right Answer

The Journal of Financial Planning featured a nice column by Harold Evensky entitled “These Innovative Research Papers Deserve Your Attention.”

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October 2015 and Year-to-Date Returns for Our 6 Asset Classes

Q3 2015 6 Asset Class Returns

October showed a sharp reversal of the movements of Resource Stocks.

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Baby Bear: The Bear Market of 1966

Baby Bear: The Bear Market of 1966

Examining past Bear Markets can help provide some context when we experience the next one.

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The Kennedy Slide Bear: The Bear Market of 1962

The Kennedy Slide Bear: The Bear Market of 1962

Here are seven sage investing lessons from the J. Paul Getty era.

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Teddy Bear: The Bear Market of 1957

Teddy Bear: The Bear Market of 1957

The lessons of each bear market are visible with the wisdom of 20/20 hindsight.

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Lessons from the Crash of 2007-2008

Lessons from the Crash of 2007-2008

For a calm investor, a crash will just mean that the stocks you would have bought anyway are temporarily on sale.

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How Common Is A Stock Market Crash?

How Common Is A Stock Market Crash?

A crash is defined as an index dropping at least 50% from some previous high. Since 1950, there has been exactly 1 stock market crash in the S&P 500 Price Index.

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Sage Advice After Stock Market Drop

Sage Advice After Stock Market Drop

When the market drops, resist the impulse to “do something.”

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U.S. Growth Stocks Stand Their Ground in 2015

US Growth Stocks Stand Their Ground in 2015

This year, almost every U.S. asset class is in the red except for growth stocks. When the market is throwing punches, you need a tactical defense.

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How to Help Clients Cope With Scary Markets

How to Help Clients Cope With Scary Markets

Staying the course when an index investment is down is very uncomfortable in the short-term but usually the best course of action in the long run.

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Radio Interview: How Volatile Are the Markets?

Singapore Skyline

David John Marotta was interviewed on radio 1070 WINA’s Schilling Show discussing market volatility.

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How To Protect Yourself From Investment Rip Offs

How To Protect Yourself From Investment Rip Offs

Six ideas to make sure you aren’t falling victim to commission-based products and services.

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Which Emerging Markets ETF Should I Buy: VWO or EEM?

Which Emerging Markets ETF Should I Buy: VWO or EEM?

They are based on different indexes and have different expense ratios.

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How Frequently Do New S&P 500 Highs Stick?

How Frequently Do New S&P 500 Highs Stick?

Every time the S&P 500 hits new highs everyone wonders if these new highs will stick.

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Mailbag: What’s Better At Predicting Future Returns Than Morningstar Stars?

Mailbag: What's Better At Predicting Future Returns Than Morningstar Stars?

How often did it pay to heed the star rating? Most of the time, with a few exceptions. Is there a better method to use?

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Mailbag: What Happened To The Markets In 2008?

Mailbag: What Happened To The Markets In 2008?

You shouldn’t invest in what you don’t understand.

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Do The Opposite of Wall Street Consensus?

Do The Opposite of Wall Street Consensus?

Contrarian indicators have paid off historically.

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Mailbag: Are Energy Funds A Good Buy?

Mailbag: Are Energy Funds A Good Buy?

The connection between the price of oil and the price of oil companies is loose.

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Second Quarter and Year-to-Date Returns for Our 6 Asset Classes

YTD 2015 Asset Class Returns

Despite the headlines, the global equity markets posted gains last quarter and for the year.

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The Behavior Gap: Finding Your Financial Balance

The Behavior Gap: Finding Your Financial Balance

Planning for your financial future is largely a question of dealing with the constant tension between living for today and saving for some future event.

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Mailbag: What Does The Shanghai Composite Being Down 32.1% Mean?

Mailbag: What Does The Shanghai Composite Being Down 32.1% Mean?

Is it a crash or just a correction? On average, the drop from peak to trough takes 85 days and the markets have recovered after another 107 days.

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Only 20% of Advisors Avoid Active Management Strategies

Active Management Strategies

The majority of advisors make the mistake of having significant or moderate use of actively managed funds.

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The Markets Are Inherently Volatile

Does Past Performance Have Anything To Do With Future Results?

Most investors don’t understand what that means.

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Marotta’s 2015 Vanguard Gone-Fishing Portfolio Calculator

Marotta's 2015 Vanguard Gone-Fishing Portfolio Calculator

If you are using Vanguard, we have created a gone fishing portfolio using only low-cost Vanguard mutual funds to help save money on transaction costs.

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What Is The Relationship Between Turnover Rate and Returns?

What Is The Relationship Between Turnover Rate and Returns?

A high turnover rate is not something you want in a stock fund.

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What To Do When The Stock Market Drops 1800 Points

What To Do When The Stock Market Drops 1800 Points

What should you do before a market correction? What about after? The answer is the same.

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How to Select Securities

How to Select Securities

Your investment strategy is critically important but the implementation requires wise fund selection.

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What Is The Correlation Of Freedom Investing?

What Is The Correlation Of Freedom Investing?

Should we have a “Free Countries Asset Class” or a “Foreign Stock Asset Class?”

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What Is The Relationship Between Number Of Holdings and Returns?

What Is The Relationship Between Number Of Holdings and Returns?

There is no such thing as “over diversification.”

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Tax Alpha: How to Fix a Client Portfolio

Tax Alpha: How to Fix a Client Portfolio

Good financial planners can be worth their weight in gold in helping clients build a tax-efficient portfolio.

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Defining Your Sectors

Defining Your Sectors

The process of defining your sectors is an attempt to identify the quintessential features of your strategy and formalize your selection criteria.

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Will Preferred Stocks Hypnotize With Yield?

Will Preferred Stocks Hypnotize With Yield?

Despite the appearance of stability, preferred stocks can become especially volatile when markets are reeling.

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What Is The Relationship Between Turnover Rate And Number Of Holdings?

What Is The Relationship Between Turnover Rate And Number Of Holdings?

The greater the number of holdings the lower the turnover rate with one surprising exception.

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Do Resource Stocks Deserve Their Own Asset Class?

Do Resource Stocks Deserve Their Own Asset Class?

Resource stocks represent one of the most interesting collections of diverse indexes as they do not always move in sync with one another.

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What Is Turnover Rate?

What Is Turnover Rate?

Beware the turnover rate. It’s much wiser to invest in funds managed by people you trust.

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The Crowd Is Usually Wrong

The Crowd Is Usually Wrong

Stocks less frequently traded have better returns.

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What Is the Correlation Between Value, Growth, Large and Small Cap Stocks?

What Is the Correlation Between Value, Growth, Large and Small Cap Stocks?

The higher the correlation the greater the justification to put them in the same asset class.

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The Asset Allocation Within Your Asset Allocation

The Asset Allocation Within Your Asset Allocation

It is good to take the two categories which are most similar and use them as underlying sector divisions within the same larger asset class.

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Hidden Fees in Private Equity

Hidden Fees in Private Equity

“Every pension plan in the nation is paying too much [for private equity], and it’s being hidden.”

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Are Healthcare and Technology The Best Performing U.S. Sectors?

Are Healthcare and Technology The Best Performing U.S. Sectors?

Should they be over weighted in your portfolio?

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