Portfolio Solutions Blog
Portfolio Solutions® uses a team-based approach to design, implement, and maintain dedicated portfolios and help you invest with confidence.
We are happy to present the first edition of our "Meet the Experts*" series, featuring our Chief Compliance Officer, Florence Affatato...Read More »
Once again, investment markets are acting like investment markets. We understand that the day-to-day numbers and sensationalized media coverage may be disconcerting, but we want to reassure you that this short-term volatility is a natural and healthy part of the market cycle.
During times of market volatility, you may be tempted to take action in response to short-term market fluctuations. However, one of the most important things to do is to stay disciplined and not change your long-term investment strategy in...Read More »
There are two roads an investor can follow when managing an investment portfolio: active management and passive management. Active management is when investors use stock picking and market timing techniques to try to outperform specific benchmarks. In contrast, passive management refers to a strategy where investors buy index funds that attempt to replicate the return of a specific benchmark.
The human desire to beat the market is a powerful force. Investors...Read More »
Some bonds within the U.S. high-yield sector have been under strong pressure recently.
In response to falling global economic growth expectations and rapidly declining expectations for energy and commodity producing company earnings, selling of these bonds has accelerated among the higher-risk and less liquid bond issues. And because the troubled and leveraged energy sector alone makes up 12% of the high-yield debt sector, pressures from such selling have been magnified.
The market was further rattled by a recent announcement from New York-based Third Avenue Management, LLC...Read More »
Index fund investing should be efficient and low cost. The goal is to capture market returns less a small fee in a diversified portfolio that covers basic asset classes. When constructed correctly, an index fund portfolio provides the highest probability for reaching your long-term investing goals.
That’s what an index fund portfolio should be — however, that’s not what many are. Many portfolios I review resemble a garbage dump. There’s little rhyme or reason to the structure, they hold redundant funds in some asset classes and are void of funds in other asset classes, and fund...Read More »
I’m often asked to recommend a simple index fund portfolio for people who are just getting started with passive investing and want to learn the basics. There are several good portfolios you can build to suit your needs using a few funds that require little maintenance. Balanced index funds are also a good option for people who don’t want to do any maintenance.
All the portfolios mentioned in this article are balanced between stocks and bonds. The percentage you should allocate to each asset class depends on your financial goal, time horizon and ability to tolerate market volatility...Read More »
Nearly every financial advisor will tell you that foreign stocks should be part of a well-diversified portfolio. Yet, an analysis of the data shows that non-US (foreign) stocks as an asset class have underperformed the US market by a meaningful amount for more than 40 years, in addition to having higher risk. So, why do it?
Despite their shortcomings, I’m still a believer in foreign equities as part of a well-diversified portfolio. The allocation has created a higher risk-adjusted return, and there is the potential for higher nominal returns in the future.
Since 1970, the...Read More »