Episode 240

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

Episode 239

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

Episode 238

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

Episode 237

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

Episode 236

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

Episode 235

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

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Episode 234

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

Episode 233

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

Episode 232

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

Episode 231

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

Episode 230

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

Episode 229

In this episode, Mark asks: will mortgage rates continue to go higher? Should you refinance your house? Smaller mortgages may not make sense due to the cost of refinancing. Aa sound investment plan requires clarity and understanding in what your money is invested in. For more mortgage help head to bankrate.com. The probability of interest rates going much lower are rarely small. What is the strategy behind tax planning? The biggest danger people have is they don’t know what they don’t know.

October 10, 2017

Episode 228

In this episode, Mark talks about how you should anticipate what markets are going to do or what the movement of certain investments will do. Do not pay attention to technical numbers too much. Market are “over bought” right now so a market crash is coming. Humans are often irrational, with feelings being nudged by their environment. People focus on the wrong things when it comes to success - short term and fees is what most people focus on. Investors feel 5x more pain in loss than they do in euphoria from gain. Today's investors feel very uncertain when it comes to control over their portfolio, with news and overload of information.

October 9, 2017

Episode 227

In this episode, Mark talks about how if you don’t understand how a return was accomplished, how do you even understand the amount of risk taken to get that return? The power of knowing what you own and why you own it. Most of the time markets are going up and people are happy with status quo - just happy their investments are going up for the year. Most people do not know or understand risk adjusted return. A mutual fund is not an investment, an etf is a vehicle, and fees are relative. The fee may be the dollar amount you pay but what are the other values you’re getting? It is extremely difficult for the average investor to look at a return and fully understand what that means. Sometimes nicer things cost more money - investing and saving are different. 

October 5, 2017

Episode 226

In this episode, Mark talks about how you must be a long term investor. Nepsis' Investment Policy Questionnaire can help you understand your tolerance for risk. If you fear a stock market crash coming; why do you have that fear? Make sure that your assets allocation is conducive to your tolerance to volatility. Figure out what you actually own in your portfolio, you may find that knowing takes away your fear. Allocate your portfolio in a way that helps you reduce volatility. Stock market corrections should not make you worry and guess what to do with your money.

October 4, 2017

Episode 225

In this episode, Mark asks, what are the markets going to do? Markets are hitting all time highs and Nepsis is continuing to be extremely bullish. SPY up just over 1 percentage point in two weeks. This is the most hated bull market in history and we're hitting new highs with companies no one has heard of. Fees are not the enemies of investors even though the media focuses on fees and returns. Investors should be focusing on value and expectations. Are you on track to have the financial future you want to have?

October 2, 2017

Episode 224

In this episode, Mark talks about Bitcoin and how it's the big talk lately, everyone is asking about it. He also discusses how the markets are doing. Markets will continue to move higher and there is always time to be investing. Mark also talks about monitoring your identity and how momentum trades do not trade on fundamentals, they trade on emotional people trying to ride a wave - that is not investing. People get emotional, especially when it comes to chasing things. You must be careful when you make an investment in something like Bitcoin. 

September 14, 2017

Episode 223

In this episode, Mark talks about the Alpha Conference for hedge fund/money managers where they talk about idea and the market. He also talks about indexing and buying index funds (the media has done a good job telling investors to compare their portfolio to the S&P 500) and tax reform, which will stimulate the economy. You never know when the bubble is going to burst. So much money flows into S&P 500 index fund companies. He also talks about PE Ratios - some companies may have high PE ratios because people are banking on future earnings. We're shifting into an environment where active managers will provide more value. Bonds are not great investments, they are beta mitigators. As interest rates go up, banks will make more money because of interest rates. There are different spikes in sectors: do you even know what sectors you’re invested in? “An epic stock market crash is coming” - investors continue to disbelieve the rally. Your portfolio should be allocated in a manner (includes being diversified) based on your investment goals.

September 14, 2017

Episode 222

In this episode, Mark talks about how volatility creates opportunity and sales creates the ability to buy. You have to be very careful how much you invest in companies. You must understand where the exposure is and what that means for the company. The quality of management in the companies you invest in is very important. When you invest you do not do so in one company just to own it, you invest for an overall strategy. Reinsurance stocks are great, but it should only be a competent to help accomplish investment and planning goals. Risk management is incredibly important when it comes to risk assessment in the economy and your portfolio. You need to be investing in good businesses in this current market. There still could be corrections and black swan events. It continues to be a great opportunity to invest in good businesses over time.

September 12, 2017

Episode 221

In this episode, Mark talks about insurance companies' growth and profit in time like these with hurricanes. Flexibility is what allows you to buy more of great businesses on sale. Some people are so focused on returns they aren’t focused on inflation, purchasing power, or time in investments. Purchasing power is ultimately what allows you to buy things. Focus on risk - this should be the number one reason! Short term moves in some stocks, not reasons you make long term decisions or why you invest in those companies. Cyclical and volatile stocks should be managed in a way you can get out or take profit when you need to. Mark also talks about the anxiety index, a gage of investor sentiment based on behaviors around the world. People become for bearish when the market is volatile, when you should be more on the bullish side. Buy and sell disciplines are equally important. The process is what makes you a successful investor - don’t be emotional in your investing.

September 7, 2017