by KenFaulkenberry | May 26, 2014 | Portfolio Management
A well constructed asset allocation plan can lower portfolio volatility and increase returns at the same time! That makes asset allocation more important than which individual investments you choose for diversification.
Many financial firms give you standard platitudes about asset allocation plans. I’m going to challenge you to think skeptically about some of their commonplace thinking. Most of them leave out important aspects, such as expenses and valuation, because it doesn’t fit the products they sell. Here are the factors that are important and my thoughts on each.
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by KenFaulkenberry | Apr 5, 2014 | Z- Uncategorized
The average investor makes decisions that cause them to underperform average investment returns. The difference between average investment returns and average investor returns is often called the behavior gap.
The following value strategies will provide a framework for making your asset allocation investment decisions and avoiding many of the mistakes that create the behavior gap.
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by KenFaulkenberry | Mar 29, 2014 | Investment Analysis
Your investment analysis should include high probability value strategies that improve returns and lower portfolio volatility. The focus needs to be on strategies that are long term value oriented rather than on instant gratification.
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by KenFaulkenberry | Feb 10, 2013 | Portfolio Management
If we have a stock market crash, is your asset allocation right to protect your portfolio from large losses? Many investors mistakenly believe that because they are “long term investors” they shouldn’t concern themselves with “short term” returns. They are wrong!
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