In this episode, Mark talks about investment clarity: knowing what you own and why you own it. The market is in a “rotation” and the behavioral aspect many times is what hurts the investor when it comes to success, with the ability to take advantage of volatility stems from transparency. He also talks about asset allocation, which has to do with the structure of the companies in your portfolio.
December 4, 2017
In this episode, Mark talks about Bitcoin. People love to buy things when they’re going up in price. According to Morningstar data you would see a 20% pull back every 5 years. He talks about a flash crash: quick downward moves in the market caused by algorithmic trading, created models that trigger trades when certain things happen in the market. Structurally the ingredients that make a market and an economy are very different in the market these days.
November 30, 2017
In this episode, Mark talks about how investors don’t know how to stick to a process. What are your investment goals and objectives? Investors are becoming more callused to what is happening with their money especially when things are going well. Most investors don’t pay attention to their portfolio until the correction comes. You need to fundamentally understand what is happening! If you understood what you owned, it could have an impact on your investment process.
November 21, 2017
In this episode, Mark says, as markets continue to move higher people will continue to speculate when the next correction will be. Investors need to understand how their portfolios are structured longer term not just the next 12 months. As businesses continue to do better the market as an overall will do better as well. Make sure your allocation is set up so that when the correction comes you can reallocate assets.
November 20, 2017
In this episode, Mark talks about common investor questions: Is my money safe? What is risk? Is volatility risk? He talks about the cost difference between high and low fee advisors is staggering, 9 tips more costly and hidden in the fine print, and cost control. He discusses how a lot of people are moving their investments into index funds and investors are being mislead and how investors are being taught to look at the wrong things.
November 11, 2017
In this episode, Mark discusses comprehensive financial planning, a whole process of what needs to be done and then you get a book on what you should follow and things you don’t want a financial advisor to say to you. The industry does not understand some of the fundamentals and basics: know what you own and why you own it. Mutual funds and ETFs are not investments, they are the vehicle that holds investments. Mark also talks about what mutual funds and ETFs are. The reason the media labels things a lower cost or low fee: investors do not have transparency or clarity in what they own and why.
November 13, 2017
In this episode, Mark answers: How do you prepare for a correction? You do NOTHING. If you are going to prepare you probably think you need to do the following:
The prep work has already been done once you have set the correct asset allocation for your goals. Corrections create the opportunity to invest more in businesses. Mark also answers a Facebook question: "I heard that a 529 college fund can hinder a student from receiving assistance from college/state/Feds. Instead of a 529, I started a standard brokerage account. Is that the best approach?” Everyone’s situation is different. If the money is in your own brokerage account there is more flexibility. You should have greater transparency and flexibility to options. There are tax benefits to 529 but they don’t outweigh benefits. Everyone is talking about stock market correction but not bond market corrections. The most important things to do to your portfolio, you do during a correction. Annuities lack flexibility and they come with lots of fees. If you have to own mutual funds and ETFs make sure you are rebalancing.
November 7, 2017
In this episode, Mark talks about how the markets were up again. People are still nervous and worried, yet it keeps going higher. More cash on the sidelines than there was at the bottom of the financial crisis. Why are people so afraid to invest? People are missing out on opportunities to buy into businesses on sale. As an investor do not put all of your money in one basket. Investors are unable to make logical educated decisions because they do not know what they own, so instead they put everything into cash. What is your investment process?
November 6, 2017
In this episode, Mark answers: What is the difference between a value and a growth stock? There is always a sale somewhere! Many investors buy at market highs only to sell at market lows, then they don’t know when to get back into their investments. Do not put all your eggs in one basket! Investors are emotional - they will connect with different stocks vs others. You can not be connected to any one company in the portfolio. Every company is owned for a reason, rebalance your portfolio when appropriate.
November 2, 2017
In this episode, Mark talks about “Why investors should not follow indexes”. Wall Street wants you to compare your portfolio to indexes - don’t do it. Why do people procrastinate? People get worried, people get nervous, and they put off investing. If your portfolio is appropriately allocated, you should not be worried about corrections. Allocat to the appropriate asset classes according to your goals and objectives. Some people speculate instead of investing. If you don’t know what you own and why, you probably are speculating, you’re hoping investments pay off for you.
November 1, 2017
In this episode, Mark talks about what do we do when we go to markets - we buy things and shop around. An SMA provides great flexibility and transparency. You will not get an idea on what is in your portfolio unless you’re given the ability to log in and visibly see your portfolio. Buying individual companies has gone out of favor, people believe it's too risky. Only 14% of funds that received a 5 star rating from Morningstar performed at that level over the next 3 years. How do you pick my allocation? Talk to 401k specialist at the company you work for, talk to those who do the research.
October 31, 2017
In this episode, Mark talks about an article from the Wall Street Journal explaining that mutual fund ratings are not what they seem. Historical performance means nothing: “it gives a good idea for how good a money manager or a mutual fund manager is”. An investor's emotions is the biggest reason investors aren’t successful. It's extremely important to minimize taxable events, maximize returns, ability to take advantage of financial opportunities. Can you put a price on clarity?
October 30, 2017
In this episode, Mark talks about how you do not lose money on investments until you sell. The bottom line is: you must have a sell discipline and you have to have a buy discipline. There are two types of investors: those who “own the stock market” and those who invest in businesses. There is criteria to help you understand how your money is being invested in your portfolio. Investors are nervous and worried when it comes down to what's happening with their money.
October 26, 2017
In this episode, Mark answers, “Why am i paying high management fees when I am seeing bigger returns from a fund”? Don't compare apples to oranges - your tolerance for risk is extremely important to establish. Performance expectations and a time horizon play a role. Most investors have expectations on what their returns should be on their portfolio. Indexes were not always created for people to invest in, they were created to keep investors in the loop for how the economy is doing. Logic would say “i might as well compare my one portfolio to my other portfolio” because there is no clarity in what is owned. Measuring how much risk is produced in getting a return. “Risk adjusted returns refines an investments return by measuring how much risk is involved in producing that return”. You can not chase the returns.
October 25, 2017
In this episode, Mark talks about how you can not and should not follow historical norms. If you are appropriately allocated in your portfolio you should never be worried about a correction. Do you sell and chase the things that are doing well? No. Do not chase high performing investments. An investment policy statement is crucial - a document drafted between a portfolio manager and a client that draws out investment. You invest in businesses via vehicles: aka mutual funds and ETFs. You have businesses in them but the vehicle doesn’t allow you to be flexible and there is no transparency. Rebalancing your portfolio is incredibly important.
October 24, 2017
In this episode, Mark talks about asset allocation vs diversification. It does not matter what your portfolio is doing year to date, or over a certain number of years. What's important is how its going to do in the future. If your portfolio is allocated correctly than the volatility associated should not bother you. There will be a low point in the market, and it will go down. You are either not investing with clarity or your asset allocation is not correct. Investors are not being trained in a way to deal with their money in the way they should. Stop comparing your portfolio to others. The only comparison that should be done is whether or not you’re on track to reach your goals.
October 23, 2017
In this episode, Mark talks about how you should be aware of your risks so that you know how to turn those into opportunities. Investors do not comprehend what they are getting (value) for what they are paying (price and fees). Mark also answers a Facebook Question: “I am wondering how a recent grad who is fairly new to investing get into a solid plan for the future?" Start with a plan and invest in funds for the long term. If you’re saving for a house or paying off debt, budgeting is extremely important. Have diversification, not over diversification. Invest around the around: small cap, mid cap, large cap, emerging markets, US markets, and companies that pay dividends.
October 19, 2017
In this episode Mark asks, are you on track to have the financial future you want to have? The industry is educating and informing investors with the wrong basic information. You don't invest in a market, the stock market is a tool to help investors be successful. You make money three ways: Interest Income, Dividends, Capital Appreciation. When you combine capital appreciation with dividends and interest: total return. In the absence of value, thus becomes cost. Successful investing is a function of a strong asset allocation. Why would you not buy more of a business as long as it is in the asset allocation of your portfolio? Sometimes the goal isn’t to “save money".
October 18, 2017
In this episode, Mark talks about how companies continue to expand and inflation continues to happen. The markets continue to hit all time highs and the amount of money sitting in cash is MORE than that when the markets were at the bottom of the market crash. Investors will continue to miss out on opportunities if they continue to sit in cash and not invest. The investment process is what enables you to be a successful investor - you must understand the process. There is a lot of growth potential still in markets. Position yourself in a way to take full advantage of opportunities. The key to successful investing is investing with clarity.
October 17, 2017
In this episode, Mark talks about how successful investing is about a portfolio working together as one. A price drop in a good company is only a tragedy if you sell at the price and never buy more! He talks about the importance of flexibility and transparency asset allocation, buy and sell discipline. Emotions are what keep us from being successful - when you don’t know what you own or why you own it you are gambling.
October 16, 2017
