News & Insights

Market Review – Q3 2015

by Financial Alternatives on 10/21/2015

  • Looking at broad market indices, the US equity market outperformed both developed ex US and emerging markets during the third quarter.
  • US REITs recorded the highest returns, outperforming equity markets.
  • Emerging markets indices underperformed developed markets indices (including the US) in US dollar terms.

posted in InvestingNewsletters

Planning Newsletter – Oct 2015

by Financial Alternatives on 10/21/2015

Smart investors should never let taxes be the primary driver of their investment planning. In past decades, investors lost millions in “tax favored” or “tax advantaged” investments. Even though investors are wise not to let taxes be the primary driver of their investment strategy, they should do everything possible to manage their portfolios in a way that minimizes taxes.

In the newsletter we cover two strategies we employ when managing client portfolios to reduce taxes: Tax loss harvesting, and thoughtful asset location.

posted in NewslettersPlanning

Emerging Markets vs The S&P 500

by Jim Freeman, CFP® on 10/7/2015

The below chart shows how much Emerging Market equities have underperformed the S&P 500 since the financial crisis. It also shows how these stretches of underperformance and outperformance are not unusual. The key to success in investing in Emerging Markets is to rebalance and add to positions during periods of underperformance and to rebalance and take profits during periods of outperformance. Having a dedicated allocation to Emerging Market equities and rebalancing back to this allocation systematically helps you accomplish this.

151007 Returns EM vs SP500 Read more

posted in BlogInvesting

Market Review – Q2 2015

by Financial Alternatives on 7/17/2015

  • Emerging markets outperformed both the US and developed ex US markets in US dollars during the quarter.
  • REITs recorded the lowest performance in developed markets, including the US.
  • Commodities were broadly positive during the second quarter.

posted in InvestingNewsletters

Investing Newsletter – Jul 2015

by Financial Alternatives on 7/17/2015

This issue includes 10 tips to help you avoid making a mistake either during a stock market correction, or in anticipation of one.  Here is a sample:

  • Understand stock market history and expect corrections
  • Understand your real time horizon
  • Design a portfolio you can live with
  • Disengage from the day to day financial news

posted in InvestingNewsletters

Market Review – Q1 2015

by Financial Alternatives on 4/16/2015

  • Looking at broad market indices, developed markets outside the US outperformed both the US and emerging markets during the quarter.
  • US REITs outperformed US broad equity market indices.
  • Small cap indices outperformed large cap indices in all regions, particularly in the US.

posted in InvestingNewsletters

Planning Newsletter – Apr 2015

by Financial Alternatives on 4/16/2015

  • Estate tax laws change often.
  • Such estate tax law changes can turn a good estate planning strategy into a bad one for the same client.
  • In 2011, federal law changed to allow each person to pass $5,000,000 (indexed to inflation) to their heirs’ estate tax free.
  • This change in the estate tax law made AB trust planning unnecessary for many people.
  • You need to review the pros and cons of AB trust planning to see if you still need or want to fund a B trust at the death of either you or your spouse.
  • We can help you make this decision along with your estate planning attorney.

posted in NewslettersPlanning

Market Review – Q4 2014

by Financial Alternatives on 1/14/2015

REITs, particularly in the US, had higher returns than most asset classes in the fourth quarter, outperforming equity indices. US equities performed better than non-US developed and emerging markets. Many equity markets outside the US declined in US dollar terms.

posted in InvestingNewsletters

Investing Newsletter – Jan 2015

by Financial Alternatives on 1/13/2015

  • US Stocks & US REITs were the top performing asset classes in 2014.
  • Globally diversified multi-asset class portfolio returns were disappointing in 2014 relative to US Stocks.
  • Asset class outperformance trends normally reverse themselves over time.
  • Selling out of an asset class due to a couple years of underperformance is unwise.
  • The temptation to sell commodity positions after such poor performance should be resisted.
  • Rebalancing a diversified portfolio on a periodic basis is often the most prudent strategy.
  • Stock and bond returns could be lower than the historical averages over the next 7 – 10 years.
  • We expect the First Trust Deed investment we use will continue providing solid, predictable returns.

posted in InvestingNewsletters

Market Review – Q3 2014

by Financial Alternatives on 10/20/2014

  • The broad US equity market had flat-to-slightly-positive returns for the quarter.
  • Most equity markets outside the US had negative performance in US dollar terms.
  • REITs recorded negative returns in the US and in developed non-US markets.

posted in InvestingNewsletters

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Disclaimer

Posts are general in nature and do not constitute the rendering of legal, investment, accounting or other professional advice.