Just before Thanksgiving, something odd happened on Wall Street. Three of the major brokerage firms issued remarkably similar reports declaring the death of the “60/40” approach to investing. What does this mean exactly, and how should you think about it? By way of background, 60/40 refers to a [...]
What’s not to like
Very often, people challenge me with the following question: When building portfolios, why don’t I include real estate investment trusts (REITs)? By way of background, REITs are large, diversified real estate companies. Some own office buildings, while others own apartments, hotels, shopping [...]
The wisdom of Harry Browne
If the name Harry Browne doesn’t ring a bell, I wouldn't be surprised. Though he was twice a presidential candidate, he never captured more than 1% of the vote. To my knowledge, though, Browne was the only financial advisor ever to run for the White House. As a Libertarian, some of Browne’s [...]

Should you get on the bandwagon?
A few weeks back, a reader—let’s call him Karl—challenged me with a question. Why, he asked, do I not recommend momentum investment strategies? If you’re not familiar with the term, momentum strategies seek to buy stocks that have done well in the past, with the hope that they will continue rising, [...]

When the mind and the heart disagree
I'm sure I sound like a broken record when I say that the single most important part of an investment plan is asset allocation. While nothing in the world is guaranteed, you dramatically increase your chances for success when you have an effective mix of stocks, bonds, cash and maybe real [...]
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