It was a wild week, with a critical vote on gun legislation, bombing and a manhunt in Boston, deadly explosion in Texas, gold tanking, and stocks suffering the worst week of 2013, with all three major indexes dropping more than 2%. Tax filing deadline passed on Monday but a MarketWatch story cautions you to save your tax records forever. That’s a long time, and a lot of paper to lug around.
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How Healthy Are You?
The Russell Advisor Health Index claims to be “a single score that allows you to compare your business to other firms to help you gain insight into the health of your practice.” I wonder how advisors rate themselves, how they compare to others, and how useful this Index is?
Tactical Investment Strategy
Steve Blumenthal, CEO, CMG Capital Management Group: Modern Portfolio Theory is alive and well. The problem is that most portfolios do not include a broad enough set of important risk diversifiers and far too many individual investors chase into and out of the stock and bond market.
60/40 is not diversified in a low yield, low dividend, relatively high PE valuation world, yet those asset categories are important within the construct of a broadly diversified investment portfolio and the risks can be inexpensively hedged from time to time.
To me, a balanced portfolio today is composed of 33% Equity (hedged from time to time), 33% Fixed Income (tactically managed) and 34% Tactical-Trading-Alternatives. Of course, you may allocate differently based on your risk level, age, needs, time horizon, etc. See Steve Blumenthal’s 2013 Portfolio Construction Game Plan.
Miguel Perez-Santalla, VP of BullionVault, is quoted in USA Today: Gold badly tarnished, sees biggest drop in 30 years. Also, see Miguel’s piece on Putting gold into your IRA retirement savings.
The Top 50 Wealth Managers
The biggest, fastest growing and the emerging talent, according to Forbes. See which firms top this year’s lists.
This Week’s Video
Investors are taking lots of money off the sidelines, embracing more risk and changing their taste in bonds. Dow Jones Adviser.