The ETF Decision Is Not All or None Shoebox design has not changed much in 50 years. Shoeboxes are still the same shape, made of the same flimsy cardboard and hold one pair of shoes. The color and lid design do vary among companies, but it’s not a big deal for shoe buyers. We’re only [...]
Each year, I put my head on the chopping block and publish a 30-year forecast for global stock and bond market returns. This forecast is used to create long-term asset allocation strategies for our clients. It’s a terribly imprecise exercise because no one can know how financial markets will perform in the future. There are [...]
The cost to invest in mutual funds is often couched in terms of expense ratios and commissions. These are important structural costs and certainly worthy of your consideration. However, other costs are not so obvious that can eat deep into your investment return. It’s wise to know what those costs are and how they relate [...]
Peter Bernstein wrote The 60/40 Solution in 2002. His seminal article laid out arguments for why 60% stocks and 40% bonds is the “ideal asset allocation” for long-term investors. He considered this allocation the “center of gravity” on a risk and return spectrum. Bernstein’s observation is timeless advice for many investors, but not everyone. The [...]
I make investment changes at a glacial speed. The last change was about five years ago when I combined micro-cap stocks with small-cap value stocks to reduce the number of funds in the portfolio. Before that, I eliminated a preferred stock allocation, which was fortunately done right before the financial crisis. Over the coming year, I believe the opportunity may present itself for another change.