Posts filed under “Asset Allocation”

Markets Are Up, So Prepare For the Next Storm



My Sunday Washington Post Business Section column is out. This morning, we look at what you can do — right now — to get yourself prepared for stormy weather in the markets.

The print version had the full headline The sun is shining on portfolios, but winter is coming, while the online version was Your portfolio may be basking in the sun, but, as always, winter is coming.

The theme is simple: Markets are at record highs, things are going well. Here is what you need to do to prepare for when the next inevitable cyclical downturn occurs. I include 5 overall steps you should take to get prepared. They are:

1. Clean up your finances
2. Restructure your debt
3. Make smart decisions about your individual stocks
4. Be ready to take advantage of volatility
5. Envision your emotional state

Here’s an excerpt from the column:

“Some of the stocks you have accumulated over the years may no longer be consistent with your risk tolerance or long-term goals. Decide on what individual holdings no longer make sense to hold, especially now with volatility low and prices high.

Are you willing to hold names that have the potential for increased volatility and big drawdowns (and the associated stress that comes with these higher-risk holdings)? Lose the speculative junk that somehow slipped into your portfolio courtesy of your brother-in-law’s latest hot stock tip.

Some of our clients own low cost-basis stock that carries a large capital-gains tax liability. This is especially true of highly concentrated holdings of company options or inherited stock. You can create a strategy to sell tranches of appreciated stock at predetermined prices and simultaneously offset the capital gains taxes through tax-loss harvesting.”

Be pro-active now that the sun is shining; Don’t give yourself something to regret in years hence . . .



Your portfolio may be basking in the sun, but, as always, winter is coming
Barry Ritholtz
Washington Post, June 7 2015

Category: Apprenticed Investor, Asset Allocation, Contrary Indicators, Investing

RIA’s Ranked by Total AUM

Click for the 50 page list. Source: Investment News

Category: Asset Allocation, Investing

A Secret Wall Street Brainwashing Machine is Wholly Unnecessary

Every now and again, I disagree with an article written by someone I like and respect. On occasion, an author will crank out a column that makes me angry. And on rare occasions, I will read something where I disagree with just about every sentence. Today is one of those total disagreement days. Marketwatch columnist Paul Farrell…Read More

Category: Asset Allocation, Cognitive Foibles, ETFs, Investing, Psychology, Really, really bad calls

Economy: Hot Enough for Stocks, Cool Enough for Bonds?

My hit today with Pimm Foxx and Betty Liu: Source: Bloomberg May 15, 2015, 12:30 PM EDT

Category: Asset Allocation, Fixed Income/Interest Rates, Media

10 Things About Living Longer in Retirement

Source: BlackRock

Category: Asset Allocation, Digital Media, Investing

RWM Coming to San Francisco and Silicon Valley in May!

The week of May 4-8th, we will be in San Francisco and Silicon Valley meeting with clients, presenting to a few tech firms, and generally enjoying the Bay area. To those of you who may be familiar with our investing philosophy but want to learn how we actually manage assets, please contact us. This visit presents an opportunity to have a…Read More

Category: Asset Allocation, Investing


As one of those folks who has spent a lot of time bashing economic and stock-market forecasters (see this, this, and this), I have no choice but to take issue with an argument made by former hedge-fund manager Jesse Felder, who asserts “that everything is a forecast.” To quote Felder: Can we please stop bashing forecasters already? There is a…Read More

Category: Asset Allocation, Bad Math, Investing, Mathematics

The Amazing Disconnect Between Hedge Fund Performance & AUM

Earlier this week, Greg Zuckerman of the Wall Street Journal pointed out one of the great mysteries of today’s investment landscape: Despite underperforming by a substantial margin, hedge funds keep attracting more investors and assets under management. It is almost as if (to borrow the headline on Zuckerman’s article), “Hedge Funds Keep Winning Despite Losing.”…Read More

Category: Asset Allocation, Bad Math, Hedge Funds, Investing, Psychology

John Bogle’s Investing Genius Needs An Update

Now before I commit blasphemy, a few words: I am as close to being a Boglehead as you will find, without actually being one. The bulk of my portfolio is in passive indexes. Most of the assets I manage are in a broad allocation model. This is a tribute to the wisdom and teachings of investing…Read More

Category: Apprenticed Investor, Asset Allocation, ETFs, Investing

Asset Class Returns vs. “The Average Investor”

This chart tells us three things: 1) People are obviously doing something wrong very wrong with their investment dollars; 2) Attempts at generating Alpha end up costing most investors their Beta; 3) Irrationality, emotions, and cognitive errors are the underlying cause of this poor performance.   Source: ValueWalk

Category: Asset Allocation, Investing