An analysis of changing to lower cost funds.
Some performance is cause for concern. Other times, you need not worry. Here are 5 times you should not worry and 4 cases when you should.
You are allowed to deduct “up to 20 percent of their combined qualified real estate investment trust (REIT) dividends,” and this deduction is unlimited. So it begs the question: Is there a way I can deduct my normal real estate income?
For all of these reasons, our recommended investment strategy does not focus on dividend-paying stocks.
A blended portfolio can perform better even as some of its components under perform due to the rebalancing bonus.
Bonds are like the iron rods put in the bottom of sailing ships. They don’t make the ship go faster, but they do keep the ship from capsizing in stormy weather.
“Think of a stock as a machine that generates cash every few months.” Smaller companies that you have never heard of usually have a better return than the better known larger companies.
Although volatility is often unwelcome by investors, it can provide profitable returns.
2017 was such a good year for the stock markets that it set a record.
Even very volatile investments may, in moderate amounts, reduce a portfolio’s volatility if the investment is not correlated with the rest of the portfolio’s components.
On January 9, 2018, David John Marotta appeared on Radio 1070 WINA’s Schilling Show to discuss ten investment categories that look more attractive than the S&P 500 at the start of 2018.
My understanding is that being the custodian of your own IRA assets is illegal. Also, we believe that investing your IRA in gold is not a good idea even if you have a third party custodian.
Under weighting Canada could have the effect of diminishing your returns. If your fund under weights Canada, consider switching to a lower cost fund which properly represents it.
Exchange Traded Funds (ETFs) have at least a dozen significant benefits over mutual funds and only a few disadvantages.
Gold advocates will often go to great lengths to tout the advantages of owning gold.
Why do our portfolios systematically overweight healthcare stocks?
Energy’s low correlation with nearly every other major asset class means even very conservative investors should consider over-weighting Energy stocks.
Long/short strategies use the money from the stocks they have shorted to purchase extra stocks that they hope will go up.
David John Marotta was interviewed on radio’s Schilling Show discussing real estate and its importance in your total net worth.
REITs are one way to get some of the benefit of investing in real estate without as much of the risk.
The larger the spread, the more likely you should neither buy nor sell the asset.
Continually curating a list of low cost funds is valuable for long term investors.
“Historically there has been a wide variety of returns from US and International stocks, and when one does poorly often another does well.”
This is a summary of the six steps required to create a well-crafted investment plan.
Index investing seeks to track the return of a portion of the market. The opposite is active management.
We don’t recommend high yield bonds because they do nothing good for your overall portfolio.
Gold sounds like it should provide a safe haven of your purchasing power much more than it has actually done so.
While volatility can make a fund more attractive on the way up, it can also make a fund less attractive on the way down.
Adding a little bit of Chile to your portfolio can boost returns and reduce volatility.
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.
While many investors say they want a low-correlation portfolio, they don’t want to actually experience a low-correlation portfolio.
October showed a sharp reversal of the movements of Resource Stocks.
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.
They are based on different indexes and have different expense ratios.
The connection between the price of oil and the price of oil companies is loose.
A high turnover rate is not something you want in a stock fund.
Your investment strategy is critically important but the implementation requires wise fund selection.
Should we have a “Free Countries Asset Class” or a “Foreign Stock Asset Class?”
There is no such thing as “over diversification.”
The process of defining your sectors is an attempt to identify the quintessential features of your strategy and formalize your selection criteria.
The greater the number of holdings the lower the turnover rate with one surprising exception.
Resource stocks represent one of the most interesting collections of diverse indexes as they do not always move in sync with one another.
The higher the correlation the greater the justification to put them in the same asset class.
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.
Should they be over weighted in your portfolio?
Correlations over the past year have been very low, while correlations over the past 10 years have been higher.
“Lawsuit lenders do not advertise prices; they advertise convenience.”
“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)?”
“We still have plenty of problems, but we’re much better than France, Britain and Germany.”
“The most important thing I learned from my research was never to attempt to forecast the price of oil.”