I’ve been thinking a lot lately about portfolio construction, especially for retirees, in these computer-algorithm dominated investment markets which swing wildly every time someone from the Fed speaks. Markets today are unbelievably short-term focused and my clients aren’t paying me to day-trade their retirement portfolios. This means that portfolios which are built with a long-term…
Chart of the Week: Not a Good Sign for Global Stock Markets
The chart below was going around a lot last week. It shows a composition of AP Moller-Maersk (the world’s largest container shipping company) and Sotheby’s (the auction house of high-end art, etc.) in blue vs. the MSCI World Stock Index in orange. That’s a pretty tight correlation and a pretty wide gap we’re seeing right…
What it Means to be “Hedged”
I’ve mentioned a few times over the past couple of months that I currently have the “Growth” allocation of client portfolios hedged against a drop in the stock market. In this post, I hope to explain what it means to be “hedged,” why it’s important to hedge risk, and how I’m currently doing so. From…