An ETF Strategist Can Help Build Stronger Portfolios, Blumenthal Tells ETF Trends

Steve Blumenthal, CEO, CMG Capital Management GroupSteve Blumenthal speaks to Tom Lydon at Inside ETFs in Hollywood, Florida.

CMG Capital Management Group (CMG) CEO and founder Stephen Blumenthal joined ETF Trends Publisher Tom Lydon at the ETF.com Inside ETFs conference in Hollywood, Fla. to discuss how financial advisors can better work with ETF strategists to bolster client portfolios.

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Code Red on High Yield Says Blumenthal

Forbes logoCMG Capital Management Group CEO Steve Blumenthal sounds the alarm on high yield bonds in his latest Forbes article (excerpt below). See the whole article here: Code Red In High Yield.

Steve is off this week, enjoying a vacation in Nantucket. Read about that and his further discussion of the dangers/opportunity in the high yield market in his 7/25/2014 On My Radar: “Seen through my lens, another “once in a generation” buying opportunity is fast approaching. I remember saying the same thing in 1999 and 2007.  The lines between generations must be shrinking as such opportunities seem to appear about once every seven years or so.”

Don’t Trust 60/40 Portfolio, Blumenthal on theStreet

Steve Blumenthal, CEO, CMG Capital Management Group on theStreet talking about an alternative to the traditional 60/40 stock-bond portfolioSteve Blumenthal, CEO of CMG Capital Management Group, talked to Gregg Greenberg at theStreet in New York yesterday (video below). The market is  overvalued by 20% after last year’s rally and bond yields remain at record lows, so the traditional 60/40 stock/bond split is not optimal, says Blumenthal, portfolio manager for the CMG Global Equity Fund. Blumenthal says a better way to allocate assets is 33% in stocks, 33% bonds and the final 34% in a tactical trading portfolio. His most recent tactical trades are going long the SPY and TLT exchange traded funds, as well as the Pro Shares Ultra Short Yen ETF.

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The Role of Gold in a Portfolio According to Graves

John Graves, ChFC, CLU, an independent financial advisorJohn Graves is the founder of The Renaissance Group, independent financial planners and Registered Investment Advisors in Ventura, CA. He is also the author of The 7% Solution: You Can Afford a Comfortable Retirement.

Appearing on the New York Markets Live show, Graves explains how he believes gold should comprise 5-8% of a typical portfolio. Because “nobody can predict the future…and if there is a catastrophic event and the stock market dives gold will go through the roof. Gold is the ultimate portfolio insurance tool. I don’t know if things will be wonderful or horrible. If things go horrible I know that gold will increase significantly in value.”

Blumenthal on Fox Business: Is 60/40 Dead?

Fox BusinessIs the idea of the 60/40 portfolio obsolete? CMG Capital Management Group CEO Stephen Blumenthal stopped by the Fox Business studio in New York to discuss ” how to modernize your portfolio allocations” with David Asman and Liz Claman on “After the Bell.” See segment on Fox Business. CMG Capital Management Group offers managed accounts, mutual funds and variable annuities that are constructed to benefit from current economic conditions, and aim to provide steadier performance in all market cycles.

Blumenthal on the New Modern Portfolio Theory

Financial AdvisorAdvisors are increasingly employing tactically managed investment strategies, and Steve Blumenthal thinks that’s good. Advisors can now access some of the same alternative investment strategies once reserved for institutions.  In the The New Modern Portfolio Theory in Financial Advisor magazine, CMG Capital Management Group CEO Stephen Blumenthal says:

Nearly half of all advisors are using some sort of tactical investment strategy, according to new research from Cerulli Associates. This important research quantifies what we have been witnessing—advisors are actively seeking alternatives to the 60/40 buy-and-hold investment approach of the past.

Why? The 60/40, stock/bond asset allocation model favored by most investment houses and embraced by advisors for a generation is outmoded and not likely to help investors achieve their objectives.

A balanced portfolio today is comprised of 33 percent equity (hedged from time to time), 33% fixed income (tactically managed) and 34% tactical-trading-alternatives. Read the full story.

Stephen Blumenthal is CEO of CMG Capital Management Group Inc. The firm offers managed accounts, mutual funds and variable annuities that are constructed to benefit from current economic conditions, and aim to provide steadier performance in all market cycles.