Portfolios
Found 19 Articles.
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Build a Portfolio for a Complicated, Uncertain World
It has become a very difficult, complicated world. U.S. policies are contradictory, producing mixed effects on the economy and markets. The One Big Beautiful Bill Act (OBBB) will provide fiscal stimulus by making the 2017 tax cuts permanent and adding tax breaks. Despite the well-publicized spending reductions, OBBB increases overall federal spending. But most of […]
Beware of the Unintended, Secondary Effects of Government Policies
Too often, policymakers overlook the secondary or unintended effects of policies. I’m concerned about both the initial effects and potential secondary effects of recent policy changes. We’ve seen the cascading stock prices that are an initial effect of a tariff and trade war. A characteristic of the last few years was the exceptional performance of […]
Portfolio Allocation and Bonds in a Low-Yield World
The investment firm AQR recently produced a paper discussing how to allocate portfolios in a world of zero interest rates. In particular, they asked whether bonds have a role in a portfolio when interest rates are near zero. Their answer is bonds do have a role, but it is a narrower one than in the […]
Re-Evaluating the Traditional Investment Portfolio
I’ve long argued that buy-and-hold investors should avoid the traditional portfolio, which is 60% stocks and 40% bonds. Here’s an article making the same argument but using different reasoning. He says investors can’t expect anything like the returns the traditional portfolio’s delivered over the last 30 years. They need to look elsewhere for decent returns. […]
More on the Global Asset Portfolio
Last Friday I linked to an article from Cullen Roche arguing that investors shouldn’t be focused on the S&P 500 as a benchmark. Instead, they should focus on the global financial portfolio of assets. Now here’s someone else arguing much in the same vein. The Philosophical Economics blog takes a look at all the media […]
Investing’s Free Lunch – Investment Portfolio Rebalancing
Rebalancing an investment portfolio increases long-term returns while reducing risk. It’s sometimes called Investing’s Free Lunch. You get something positive in return for doing almost nothing. Recently a study was published disagreeing with that. Or it seemed to. But on complete examination, it really doesn’t. You see, rebalancing doesn’t produce an automatic positive result each […]
The Desert Island Investment Portfolio
Most investors trade too often. One reason they don’t buy and hold is that their portfolios aren’t properly diversified. Another reason is that they pay too much attention to the headlines and short-term trends instead of putting those aside and focusing on the longer term. Here’s a good discussion of that process, including research indicating […]
End of the Traditional Balanced Portfolio
Longtime readers know I’ve never been a fan of the traditional balanced portfolio, which generally is 60% stocks, 40% bonds. People have some variations, but there isn’t much practical difference. Among the problems with the traditional portfolio is that it really isn’t diversified. About 90% of the portfolio’s risk, volatility, and returns are tied to […]
529 College Saving Plans
Active versus Passive Investing
Art and Collectibles Investing
Asset Allocation
Bear Market
Bonds and Tips
Bull Markets
Cash Management
Commodities
Cryptocurrencies
Diversification
Dividend Investing
Endowment Investing
ETFs
Financial Crisis
Global Markets
Emerging Markets
Gold and Silver
Hedge Funds
Index Investing
Interest Rates and the Yield Curve
Investing for Children and Grandchildren
Investing Strategies
MLP's
Momentum Investing
Mutual Funds
Passive Investing
Real Estate Investing
Risk Management
Shiller
Smart Beta
Stock Market Bubbles
Stock Market Crash
Stock Market Votality
Stock Markets and the Economy
Stock Valuations
Stocks
Value Investing
Warren Buffett
