Resources

Anatomy of Portfolio Trading

Jeremy Wolf
April 19, 2019

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-oriented… READ MORE  ›

Benefits of Diversification

Huy Lam
April 2, 2020

The presentation helps investors understand the benefits of investing in multiple assets classes to increase a portfolio’s return potential or decrease its risk exposure. The slides present risk-return characteristics for five different portfolios, starting from a simple two asset class allocation and ending with a more comprehensive allocation. The contribution of each asset class to the overall portfolio is shown along the way. The presentation ends with reviews of the historical premiums some asset classes have over others… READ MORE  ›

Building Blocks Chart

Huy Lam
April 2, 2020

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?… READ MORE  ›

Building Blocks Chart with Hypothetical 60/40 Portfolio

Huy Lam
April 2, 2020

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 portfolio macro-allocated according to a 60% equity / 40% fixed income split. The 60/40 hypothetical portfolio invites a closer scrutiny of the asset classes on the chart.… READ MORE  ›

Diversification Through Time

Patrick Collins
April 2, 2020

Investors have two basic options. They can concentrate their portfolios – in, say, the S&P 500 or U.S. Treasuries, or real estate – or they diversify broadly over a weighted cross-section of global stocks, bonds and real estate. Which strategy is more likely to produce better long-terms results? Which strategy is less risky?… READ MORE  ›

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

Dale Schultz
August 20, 2019

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 ERISA Section 404(c) regulations which specify requirements for the structure and administration of participant-directed plans.… READ MORE  ›

Modeling Future Investment Results: Portfolio Analytics

Patrick Collins
March 5, 2019

Portfolio Analytics provides technical information on the portfolio model used in your Investment Policy Statement [IPS]. The model employs historical returns, variances and asset class correlations for the period January 1973 through the end the previous year. The model focuses on the economic consequences of the strategic asset allocation decision. It does not take into account contributions and withdrawals, expenses, and taxes. As such, it is an asset allocation model not a prediction of actual future wealth or portfolio withdrawals (consumption)… READ MORE  ›

Online Security

Ken McMurray
December 4, 2019

As we head into the holiday season, we remind you that this time of year, more than ever, it is important to be diligent about securing your identity in your interactions with financial institutions. Taking a few simple precautions can make a huge difference. A word, then, about some of the more important measures you can take to protect yourself… READ MORE  ›

The Risk Return Continuum

Huy Lam
April 2, 2020

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). … READ MORE  ›

What Investors and Trustees Should Know about Investment Advice

Patrick Collins
July 30, 2019

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  ›

What Investors and Trustees Should Know about Investment Advice

Patrick Collins
July 17, 2019

Is professional financial advice harmful? This article reviews and evaluates the current state of the U.S. Financial Advisory Profession. It cites findings from academic and governmental regulatory agency sources indicating that the profession is rife with conflicts of interest, abusive practices, and even outright fraud. This is not a matter of “a few bad apples;” rather it is a systematic condition flowing from: (1) The use of asymmetric information to exploit clients, (2) Principal / Agency conflicts (both disclosed and undisclosed), and (3) Embedded compensation incentives designed to reward the advisor to the detriment of the client. Schmooze, deceit, and sophisticated swindling seem to be commonly found attributes. We provide an honest discussion and offer ideas on how to select and compensate an advisor… READ MORE  ›

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