Common Method of Allocating Between Equity Securities and Debt Instruments Portfolio design customarily begins with a decision regarding the percentage to be allocated to equity securities versus debt instruments[1]. Allocating and rebalancing to a percentage is simple; but the percentage to be allocated is typically nothing but a rudimentary judgement call, based upon ill-defined risk […]
How Does a Government Shutdown Affect the Stock Market? Impact and Analysis
Another day, another crisis of leadership in our government. Fears of a looming government shutdown might have you wondering if it’s time to “shut down” your stock investments until this is all fully resolved. Currently, the government is only funded until November 17, 2023, igniting discussions about the financial implications of a shutdown. While the […]
Updated: Coronavirus: The Market Gets a Cold
Updated February 2, 2022 It’s been nearly two years since the economic impacts of Covid-19 and subsequent containment protocols first began hitting the markets. Given today’s (still, but for new reasons) turbulent market conditions, it seems to be a good time to reflect on the aftermath of the 2020 market drop. The thing I’m not […]
Lessons from GameStop Mania
By now, most of us have heard plenty about the frenzy going on around GameStop (ticker GME), a brick-and-mortar video game retailer. For quick background, GameStop is not in a good financial position and hasn’t been for some time. Their business model is based around retail malls selling a product that is rapidly becoming completely […]
What is the new ETF rule?
Every so often, something occurs that changes the way we invest, and we think it best to keep our clients informed regarding these changes. This year, one such change occurred: The Securities and Exchange Commission (SEC) has adopted the ETF Rule, which allows Exchange-Traded Funds (ETFs) to exchange securities within their portfolios for different securities […]
This time IS different
You’ve seen the declaration splashed across headlines, “This time is different!” Public perception surrounding the first half of this year and predicting the next has been grim. Pundits espouse that these events have “never been seen”, they are “once in a lifetime,” “a perfect storm”. The crazy thing is, they’re right. Whether it is the […]
The Impact of the Coronavirus on the Stock Market and Your Financial Portfolio
As the coronavirus continues its trek around the world, speculation about the virus’s impact on the global stock market has been equally rampant. Those asking whether they should get more conservative with their financial investments or pull out of the market altogether are not wrong to assume that the coronavirus will impact the stock market. […]
Stock Market Performance: A Case for Diversified Portfolios
If you have been paying attention, you know how much we believe in equity markets. Our clients who have a long enough time horizon and the risk tolerance to endure bear markets are invested, at least to some degree, in massively diversified portfolios of stocks. A reason we recommend portfolio diversification is because most individual […]
Getting to the Point of a Point
Recently, I ran across this article from Dimensional Fund Advisors. It contains insight into the difference between a price-weighted index like the Dow Jones Industrial Average (DJIA), and a cap-weighted index like the S&P 500. It puts into perspective the large swings in the DJIA, and highlights the limitations when comparing a portfolio to an […]