In this episode, Mark talks about how a lot of the performance of the S&P500 has been driven by a few companies. The bigger the market cap of the company the bigger the effect on the index. You should have money invested in emerging markets and international stocks to add diversification. Successful investing is about asset allocating properly and owning great businesses over time. Have an understanding of what is in your portfolio in the first part. In Headline vs the Bottom Line, Mark tales a look at what you do own and what is in the portfolio. How much volatility can you tolerate as you build on your portfolio? How much of a pullback can you emotionally handle? Communicate with your advisor and continually looking at the structure of your portfolio and how it would look if there was a portfolio.
August 22, 2017