July 25, 2016

Radio: The Importance of Real Estate

rainbow row

David John Marotta was interviewed on radio’s Schilling Show discussing real estate and its importance in your total net worth.

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A Guide to Investing in REITs

A Guide to Investing in REITs

REITs are one way to get some of the benefit of investing in real estate without as much of the risk.

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What Are The Problems With Illiquid Alternative Investments?

What Are The Problems With Illiquid Alternative Investments?

If you happen to hold alternative investments and can find a fair price for them, we recommend that you liquidate them.

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Fund Analyzer Shows Value Of Lower Fees

Fund Analyzer Shows Value Of Lower Fees

Continually curating a list of low cost funds is valuable for long term investors.

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Dimensional On: Why Should We Invest Internationally?

Dimensional On: Why Should We Invest Internationally?

“Historically there has been a wide variety of returns from US and International stocks, and when one does poorly often another does well.”

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How Long Should I Give An Investment Plan?

How Long Should I Give An Investment Plan?

Even the most brilliantly crafted investment plan has to be given time to work.

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The Complete Guide to Creating an Investment Plan

The Science of the Rebalancing Bonus

This is a summary of the six steps required to create a well-crafted investment plan.

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Why We Do Not Use Active Management

Why We Do Not Use Active Fund Managers

Index investing seeks to track the return of a portion of the market. The opposite is active management.

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Mailbag: Why Doesn’t Everyone Want High-Yield Bonds?

Mailbag: Why Doesn't Everyone Want High-Yield Bonds?

We don’t recommend high yield bonds because they do nothing good for your overall portfolio.

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Why Gold Has Utterly Failed as a “Safe Haven”

Why Gold Has Utterly Failed as a "Safe Haven"

Gold sounds like it should provide a safe haven of your purchasing power much more than it has actually done so.

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A Case Study In Volatility

A Case Study In Volatility

While volatility can make a fund more attractive on the way up, it can also make a fund less attractive on the way down.

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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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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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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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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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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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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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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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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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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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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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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 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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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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What Is The Correlation Between US Stocks and Foreign Stocks?

What Is The Correlation Between US Stocks and Foreign Stocks?

Correlations over the past year have been very low, while correlations over the past 10 years have been higher.

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The Art of the Rebalancing Bonus

The Art of the Rebalancing Bonus

Portfolio design and rebalancing is both a science and an art. Knowing that rebalancing boosts returns is useless unless you as the investor follow through.

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The Science of the Rebalancing Bonus

The Science of the Rebalancing Bonus

Rebalancing can both boost returns and lower volatility, but most investors do not understanding how.

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First Quarter 2015 Returns: Our 6 Asset Classes

Q1 2015 6 Asset Class Returns

Each quarter brings a different set of returns for each asset class and subcategory.

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Is Lawsuit Funding A Good Investment?

Is Lawsuit Funding A Good Investment?

“Lawsuit lenders do not advertise prices; they advertise convenience.”

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Schwab Intelligent Portfolios: Built on a Faulty Premise

Schwab Intelligent Portfolios: Built on a Faulty Premise

It is a great marketing campaign, and the service is a wonderful idea, but the asset allocations of SIPs aren’t actually that intelligent.

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Are Socially Responsible Investing (SRI) Funds Better Investments?

Are Socially Responsible Investing Funds Better Investments?

“What do you think of the idea of Socially Responsible Investing (SRI) implemented simply by investing in something like the Domini Social Equity Fund (DSEFX)?”

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Jack Bogle: The Value Of An Advisor Who Sticks To A Long Term Plan

Jack Bogle: The Value Of An Advisor Who Sticks To A Long Term Plan

“Advisers need to sell their value as keeping their clients from doing the wrong thing at the wrong time.”

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Warren Buffett Extends His Lead in Hedge Fund Wager

Warren Buffett Extends His Lead in Hedge Fund Wager

With three years remaining on a ten year $1 million bet, Buffett is sitting pretty to win it.

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Jack Bogle: Investing Outside The United States

Jack Bogle: Investing Outside The United States

“We still have plenty of problems, but we’re much better than France, Britain and Germany.”

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Oil Price Predictions Are Essentially Meaningless

Oil Price Predictions Are Essentially Meaningless

“The most important thing I learned from my research was never to attempt to forecast the price of oil.”

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What Happened To The Australian Dollar?

What Happened To The Australian Dollar?

At first glance, AUNZ did not have great returns in 2014. But is that the whole story?

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What Is The Alternative To An Annuity?

Question hole

An immediate fixed annuity is not an investment; it is an insurance product.

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What Is The US Dollar Index?

What Is The US Dollar Index?

How is the change in the value of the dollar computed?

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Returns from the Countries with Economic Freedom

Freedom Countries - 2014 Returns

Freedom investing beat the EAFE Foreign index by 7.92% in 2014.

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2014 Returns for Our 6 Asset Classes

6 Asset Classes - 2014 Returns

When asset classes are not correlated that means they often move in different directions.

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Does Past Performance Have Anything To Do With Future Results?

Does Past Performance Have Anything To Do With Future Results?

Is there a correlation which would justify talking about “the momentum of the markets”?

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Guess What Statistic Has The Highest Correlation With The S&P 500?

Guess What Statistic Has The Highest Correlation With The S&P 500?

David Leinweber calls this technique, “torturing the data until it screams.”

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November 2014 Returns for Our 6 Asset Classes

November 2014 Returns -6 Asset Classes

Here are the returns for our six Asset Classes from November 2014.

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August – October 2014 Returns for Our 6 Asset Classes

6 Asset Classes - 8-10-14

Here are the returns for our six Asset Classes from August 2014 – October 2014.

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Bogle’s Best Advice: Don’t Peek

Don't Peek

When it comes to finances, just shut your eyes and keep them closed.

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If You Wouldn’t Buy It, Why Keep It?

Lego Shop

The stock market is one of the few places that when things go on sale we are less likely to want to buy.

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Should You Be Building Bond Ladders In This Lower Rate Environment?

Ladder from above

There was an interesting article by Joseph Lisanti in Financial Planning Magazine entitled, “Should You Be Building Bond Ladders?” which read in part: As with many strategies, laddering works best for clients with sufficient assets to benefit fully from it. “It is a tried-and-true strategy,” says Morris Armstrong of Armstrong Financial Strategies, an RIA in [...]

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How To Diversify Highly Appreciated Stock

Dog and Turtle

Exchange funds, also know as swap funds, can provide investors with one highly appreciated security a way to trade it for an equivalently valued but more diversified portfolio.

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