Episode 261

On this episode, Mark talks about:

  • Show discussing the IPS
    • An agreement between the advisor and the investor
  • Allows you to put parameters on what investments you own
  • Not just risk tolerance, but the policies applicable to the investors portfolio
  • Performance expectations
    • Why do people buy high and sell low
    • Move their money constantly
  • Investors don’t have clarity on their expectations
  • You have no idea how your portfolio performs when you own mutual funds
  • Stop asking the wrong questions!
    • Investors always ask what fees are
    • Should be asking about buy and sell discipline
  • Discussion on Claritology

January 18, 2018

Episode 260

On this episode, Mark talks about:

  • Maintain reasonable expectations
  • Black swan events: things that are unpredictable and out of any controls
  • You should view investing as a process
  • Bitcoin:
    • Crypto currency
  • Paper gains mean nothing
    • Only matters when you sell
    • Selling should be a process just as buying is a process
  • Why do money managers have bad years?
    • Stick to a process
  • SMA
    • Your money is not commingled with other peoples money (mutual funds, ETFs)
  • DOW jones is a price weighted index
  • Stick to a buy and sell discipline
    • When do you buy or sell?
  • ASK how the money is managed
  • Great businesses do not always reflect it in their stock price
  • Fixed income, gold and silver are horrible investments
  • Bonds and the price of bonds can be very volatile
    • The economy is heating up, tax cuts have come
  • A “melt up”in the stock market when the market becomes fully valued
    • When everyone sells bonds and buys stocks
  • You must remain unemotional and stick your process

January 17. 2018

Episode 259

On this episode, Mark talks about:

  • Own a more global portfolio
  • Investors don't like to talk to financial advisor
    • It makes them uncomfortable
    • They hear the same thing over and over
  • Indexes are designed to be guidelines not investment vehicles
  • Discussing issues or experiences with Advisor Josh and Kevin
  • It's not always the guy who knows the most, its the person willing to lead
  • Leadership is incredibly important in an advisor
    • It's not about appeasing a client
  • Work with a firm that enables you to see and understand how your portfolio operates
  • Mistakes investors make:
    • “The fear of missing out”
    • “What goes up must come down”
  • Any pull back investors are waiting
  • We have never seen interest rates this low

January 4. 2018

Episode 258

On this episode, Mark talks about:

  • Investors look to advisors to talk about their portfolio first and planning second
  • It's never too late to start
  • Many investors have questions about an investment portfolio first
    • Inherited money
    • Sold a business
    • Have a 401k rollover
    • Etc
  • Investors rarely come in and ask for a financial plan first
    • Nepsis clarity roadmap and clarity compass
  • Investors don’t know what to do with their money and they aren’t happy
  • Are you in it for the long term journey or are you focused on short term gains and returns
  • Facebook question: “Give examples of the Art in investing”
    • Strategic cost averaging
    • Tax loss harvesting
  • Active vs passive management
  • Risk is relative, its not absolute 
  • Not one position makes or breaks a portfolio

January 3, 2018

Episode 257

On this episode, Mark talks about:

  • “But this time is different”
    • Every bull market has something different
    • There is still 1 fundamental fact that is constant in any bull market
      • The valuation of a market or stock is only as high as how much people will pay for it
  • Invest in yourself
  • Long term care insurance, life insurance, do you need them?
  • Stress test experience discussed
  • Past performance is not indicative of future performance
  • Characteristics in a portfolio
    • You must have an investment strategy
      • Do you know the strategy for how investment decisions are made?
      • Strategic and tactical
    • Blocking and tackling component
      • What are you doing to enhance your investment success
    • "Tactical allocation”
      • The money manager can justify charging you a fee now
    • Tax loss harvesting
      • Getting the tax deduction against capital gains
  • Investment tactics = investment strategy ?
    • NO
    • There is a strategy, and then there are tactics that help you execute the strategy
  • Headline: “why the S&P 500 will surge to 3000 in 2018
  • "Stocks can easily keep soaring”
  • Despite economic conditions and black swan events, we can not predict them
  • Many investors don’t know WHY

January 2, 2018

Episode 256

On this episode, Mark talks about:

  • Continuation on 2018 predictions 
  • More cash on the sidelines, but hitting all time highs (dependent on how your portfolio is invested)
  • Free advice
    • You get what you pay for
  • We believe investors do not have enough clarity in their investments
  • Do not chase historical returns
  • The only benchmark you should focus on is the benchmark of reaching your goals
  • Investors will continue to be over diversified
    • They are not focusing on the efficiency of their portfolio
  • Investors love to pick the benchmark that they think will work best for them
  • Article: “time to remind your clients why they won’t beat the DOW this year”
    • Setting expectations with their clients for planning and investment terms
    • Focus on the plan and the big picture
  • Performance expectations from investors
    • Short term in nature not long term
  • Smart people in the money business are not dumb
    • “The stock market is rigged”
    • Media is making investing a cost issue instead of a value issue
  • Most investors invest in a ray of “hope”
  • Investors will continue to have an unrealistic time horizon for their investments
  • Less than 15% of five star rated funds only three years later had performed at the same level of a 5 star fund

December 28, 2017

Episode 255

On this episode, Mark talks about"

  • DOW is a price weighted index
  • Why do you have a bad year?
  • We don’t invest for one year, we invest for the long term
  • How much risk do you take in order to get the return
  • The idea of knowing what you own and why; knowing how things affect your portfolio good or bad
  • Top 10 predictions of 2018
    • S&P predictions ill be wrong
    • Stock prices and sick market will move up and down irrationally
    • Focusing on short term performance will distract investors
  • Strategic cost averaging is investing unequal dollar amounts in strategic areas
    • Static rebalancing
  • Josh and Ken sharing experiences with clients and advisors

December 27, 2017

Episode 254

On this episode, Mark talks about:

  • In the absence of value, thus becomes price
  • If an investor does not have a perception of value that they are getting from their advisor then it is only common sense they look for low cost
  • People pay for value
  • You don’t pay Nepsis to manage your money, you invest in Nepsis and invest in someone to do a good job for you
  • Clarity brings greater confidence to the decisions you make
  • It's not a cost, its an investment
  • Can you put a price on clarity?
  • Trump and his capital growth plan
    • Capital sued to build the economy and add more jobs
    • You have to pay more to get the best
  • No tax plan ever appeased everyone
  • This plan “doesn’t give the working class a tax break”
    • If you aren’t paying much tax into the system in the first place, how are you saving taxes anyway
  • It's the 1% that takes the capital they’re making and reinvests it, buys, or donate

December 20, 2017

Episode 253

In this episode, Mark talks about:

  • Technical investing and technical analysis
    • You are looking at stock charts to decide based on factors that are used in technical investing
  • "Over bought and over sold”
    • Markets can be those for periods of time
    • Yhat is why you can’t time the market
  • When investors have a better understanding of what they own and why they are more likely to stick to the process
  • Stocks tend to be more volatile
  • Values are relative, not absolute
    • This can make investing challenging for a lot of people
  • When do you start buying something, and when do you sell?
  • MSCIEAFE index
  • Theres no guarantees, fundamentally you need to know what the greatest risks in your portfolio are

December 19, 2017

Episode 252

  • Rebalancing is the most powerful tool investors have to buy low and sell high
  • You are setting your allocation to the percentages that you want them to be at
  • Volatility levels eventually even out
  • People are as bearish as they were in 2009
    • Losing out on gains
  • Successful investing has to start with a time tested investment philosophy and strategy
    • You must understand how decisions are make
  • Flexibility and transparency are key to stick to the process
  • Question from Facebook:
    • Are your investments doing the best they can, and are you on track with your investments?
    • You don’t need to know every detail of your portfolio especially if you trust your advisor
    • Rebalancing, asset allocation
  • It's less knowing why you own something; its the fact that you know the businesses in your portfolio
    • You hired someone to give you the insights while they manage it for you
  • Own the best of the best
  • It's always good to tune up the portfolio and prune it
  • People spend their time chasing benchmarks
  • Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria
  • There is so much cash and people are scared they are going to miss out on the market
  • Tax cuts generally don’t bring in big market corrections

December 18, 2017

Episode 251

On this episode, Mark talks about:

  • What's coming in the next ten years?
    • “Software will disrupt most industries in the coming years”
  • Think ahead when it comes to your investments
  • If a corporation makes money
    • It's going to go back to the owner in the form of a dividends
    • It may go into the bank account of the corp
    • Directly investing in their own business
  • The tax plan does not only help the rich
  • Wide economic moat
    • Sustainable competitive advantage that a business has that makes it difficult for rivals to compete with
  • The only benchmark you need is whether or not you’re reaching your goals
  • When things are going well a sense of complacency takes hold in investors
  • When things are going well we have the herd mentality
  • It is process that enables you to be successful
  • It's important that you have a plan of action to help you with your investments and accomplish your goals
  • Static rebalancing
    • Rebalance back to the static percentage
  • How do MLPs and LPs compare to stock
    • Stock is equity in a business
    • Most companies that trade on the exchange or c-corps
    • MLPs and LPs have a place in your portfolio depending on your goals

December 12, 2017

Episode 250

On this episode, Mark talks about:

  • The job of the media is to get people engaged
  • Bitcoin: went from 1700 to 1800, then moved back to 1470
    • Back up to 1800
    • The actual bitcoin went 12,000 to 9,000 and today closed at 19,000
    • The problem with bitcoin can’t be turned into cash
  • Who is valuing bitcoin? You are - the people buying it
  • A rule of thumb: many investors view those metals as investments - they are not investments!
  • Proxies for currency, they are hedges
  • 24 is the average pike PE before markets go into a spiral
  • Do not let the media scare you from investing!
  • Asset allocation tool, piece you put in the portfolio as part of your portfolio for overall portfolio performance
  • When you have a portfolio and it is appropriately asset allocated every position in that portfolio should be owned for a specific reason for the whole portfolio to perform as one
  • Everything is in the portfolio for a reason

December 7, 2017

Episode 249

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

Episode 248

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

Episode 247

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

Episode 246

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

Episode 245

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

Episode 244

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

Episode 243

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:

  • Sell investments and put them in cash and hope for prices to come down
  • You may buy hedges or other investments that are counter intuitive to the stocks you own in your portfolio

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

Episode 242

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