Anatomy of an Investment Fund Selection

Recently, in “Anatomy of Portfolio Trading,” we provided insight into the Schultz Collins trading process. In brief, we outlined the care, skill and caution required to assure an efficient buy/sell transaction. Above all, we emphasized that a hasty process is often imprudent; and we explained why rushed trades can produce poor outcomes. As its title… Read more »

How ERISA Section 404(c) Affects You and Your Firm’s Retirement Savings Plan

This report is an evaluation of the effect of the U.S. Department of Labor’s regulations on Retirement Savings Plans offering participant-directed investment accounts. Many defined contribution plans and virtually all 401(k) plans allow participants to direct the investments in their respective accounts. The report focuses on the Department of Labor ERIS Section 404(c) regulations which… Read more »

Financial Exploitation

This essay provides a brief description of fraud and exploitation risks that investors are more and more likely to encounter. It concludes by outlining a coordinated effort, encompassing several new programs, which Schultz Collins, Inc. [SCI] has begun to implement. Our goal is to keep your money safe. The essay is, in some ways, a… Read more »

2019 Q2 Quarterly Update

In the second quarter of 2019, global equity markets continued to move higher, despite concerns of slowing global growth. The MSCI All Country World Index, a barometer of equity-market performance throughout the developed and emerging countries, posted a healthy 3.80% return for the quarter, bringing the year to date returns for the index to 16.60%…. Read more »

2019 Q1 Quarterly Update

Global equity markets rebounded in the first quarter of 2019, and have now recovered almost all the losses they suffered in the last quarter of 2018.  Some have attributed market advances in the first quarter of 2019 to the decision of the Federal Open Market Committee to pause its “quantitative tightening” program, signaling Fed fund… Read more »

Anatomy of Portfolio Trading

No matter how carefully a portfolio coordinates with an investor’s objectives and risk tolerance, poorly conceived and executed trades can undercut its long-term success. Although intelligent trading is critical, most investors find it opaque. Confusion arises, in part, because the popular term ‘trader’ connotes someone who trades to maximize short-term profit and loss [P&L]. P&L-oriented… Read more »

What’s the Market Outlook for 2019?

Recently, the CFA Research Institute—a global association of investment professionals holding the Chartered Financial Analyst designation—offered the following observations from Joachim Klement, CFA: At the beginning of 2018, a survey of strategists working at major banks around the globe indicated that their median predicted return for the S&P 500 in 2018 was 10.3%. The realized… Read more »

Building Blocks Chart

The Building Blocks Chart is a pictorial depiction of the relative performance of asset classes over calendar-year periods. What’s the likelihood that last year’s winners will repeat? Should the investor avoid asset classes exhibiting recent poor performance? As the table illustrates, the relative performance of asset classes can shift dramatically from year to year. Investors… Read more »

Building Blocks Chart with Hypothetical 60/40 Portfolio

Our annually updated Asset Class Building Blocks Chart ranks the more important asset classes by their performance for each of the trailing 20 calendar years, with the best performing asset class for each year appearing at the top of its column, and the worst at the bottom. The chart includes the performance of a hypothetical… Read more »

The Risk Return Continuum

One way for an investor to find an asset allocation suitable to his risk tolerance is to track the behavior of a set of model portfolios. The investor considers the historical returns achieved by various diversified portfolios, each of which differs according to its percentage allocation to fixed income (bonds) versus equities (stocks). A low… Read more »