The total U.S. stock market has gained over 20% during the past year and is doing great. But for U.S. investors that are under-weighted to foreign stocks, it’s not so great. Why? Because foreign stocks have convincingly outperformed U.S. equities, thereby causing a performance deficit. What’s the problem?
The tendency of investors to concentrate and tilt their stock and bond holdings toward their home country is referred to as “home-bias investing.”
Read more ›
Posted in Asia Pacific, Asset Allocation, Europe, Middle East, Africa, Fox Feed, Frontier Markets, Global Economy, Global Real Estate, Investor Behavior & Psychology, Japan, Latin America, NASDAQ Feed, Partner Feeds, Portfolio Management, U.S. Stock Market, Yahoo Feed
Tags: currency diversification, emerging markets, foreign stocks, home-bias investing, index ETFs, securities, U.S. Dollar
Do you own mutual funds? If you do, there’s a hidden trap called “style drift” that could be increasing the risk of your investment portfolio. How does style drift happen?
Style drift occurs when the fund’s portfolio manager begins to deviate from the fund’s investment objective.
Read more ›
Posted in Asset Allocation, ETF, Financial Planning, Fox Feed, Investor Behavior & Psychology, NASDAQ Feed, Partner Feeds, Portfolio Management, Retirement Planning, SEC Market Regulation, Yahoo Feed
Tags: index ETFs, mutual fund, portfolio, risk exposure, SEC, small cap funds, small caps, style drift
What’s a telltale sign of a poorly designed investment portfolio? Answer: A portfolio that underperforms indexed yardsticks. Is it reasonable to expect this type of portfolio which is unable to deliver satisfactory results during a favorable stock market climate to miraculously thrive during an uncooperative market? Answer: Absolutely not!
This is one of the reasons why identifying the strengths and weaknesses of your portfolio is so important: because it gives you an immediate point of reference by telling us whether you are progressing or digressing financially.
Read more ›
Posted in Fox Feed, NASDAQ Feed, Partner Feeds, Portfolio Management, Uncategorized, Yahoo Feed
Tags: eafe, index ETFs, investment, ishares, MSCI, portfolio report card, small cap, taxable account, value fund, vanguard