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Category Archives: Asset Allocation


Confessions of a Former Stockaholic

Several years ago, our firm retained Miller McMillian, a copywriter, to help us with our website.  Little did we know, he began investing using the methods we’ve been espousing in our newsletters and blogs.  He asked if he could share his experiences. First of all, I am not a professional stock picker. I am an [...]

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Should You Use Currencies to Diversify?

Whether it’s the ancient Greeks quipping about moderation in all things or a mom telling her kids to eat their vegetables and not just Otter Pops, diversification in life is broadly understood to be a wise principle. It’s especially true when it comes to investing. Asset allocation is often cited as principle number one, accounting [...]

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Your Cash Ain’t Nothing But Trash

Baby boomers who grew up listening to this Steve Miller song remember that it was about a guy who had cash, but couldn’t get a girlfriend, buy a Cadillac, or even get arrested. In reality, cash isn’t trash, but cash generally doesn’t belong in long-term investment portfolios, unless you are an avid investor trying to [...]

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Why Your Investment Portfolio Is Not Diversified

Some people think investing is all about picking the right stocks to “beat the market.” Peter Lynch and Warren Buffett are fabled stock pickers. Wall Street would certainly have you believe this notion because “beating the market” rings their register. And then investors are told that they should be diversified. Does that mean owning 30 [...]

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Who’s Occupying Your Portfolio?

The Occupy Wall Street movement has become a topic of national discussion. Camped out in lower Manhattan for over a month, the protestors have spawned copycat events across the nation and abroad. While some identify with the frustration of youth trying to break into a job market that supplies a meager one job for every [...]

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Why You Should Buy U.S. Treasuries

When PIMCO Total Return (symbol PTTAX), the largest bond fund in the world, not only sells, but shorts—or bets against—treasuries, it is as if Moses has descended with tablets and has a frown on his face. True to herd mentality, large bond funds like the Loomis Sayles Bond Fund (LSBDX), and Templeton Global Bond Fund (TGBAX) have liquidated [...]

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What Is Asset Allocation Anyway?

Yale professors studied money managers to uncover the source of their portfolio performance. They found that 90 percent of the returns came from the markets where they invested. Less than 10 percent came from the individual stocks they bought, and the timing of buying and selling investments. For example, if they owned small-cap value stocks [...]

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Our Conspiracy Theory

Have you ever met the crazy conspiracy theorist who is convinced that a well-executed and malevolent plot lurks behind most events? These were the people whose eyes bugged-out during Y2K, who are convinced that Apollo 11 never landed on the moon, that the World Trade Center was actually blown up by the United States to [...]

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One Way To Fight Inflation

In January 1997, the U.S. government began issuing a new type of bond: Treasury Inflation Protected Securities (TIPS). TIPS are a separate asset class that’s distinct from bonds because they behave differently during inflationary times. By owning them, you are further diversifying your portfolio and reducing risk. If you don’t own TIPS, you should. At [...]

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Hair On Fire

For those of us who did not live through the Great Depression, there has never been more economic uncertainty.  With an scorched earth economy behind us and multiple land mines before us, betting on trends is harder than ever.  For example, half of the soothsayers say that gold is ready to double, while the other [...]

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