In this episode, Mark talks about Google, Apple, Microsoft, Amazon, and J&J - at least two of those are always in the top three holdings of most portfolios. As these stocks go, so will the S & P 500 or the Nasdaq and DOW. Mark answers a common question; how many stocks should I own based upon my age? It depends on income needs and retirement - most investors feel like they are diversified, but that is only a part of it. Asset allocation is just as important, if not more important. He says he likes to correlate volatility with risk, so if your portfolio is adequately asset allocated, volatility is a tool. Volatility is mandatory for successful investing. Investors can also own bonds for beta mitigation - it's a function of reducing volatility in your portfolio and give you access to capital for your income needs during a corrective phase. The process, flexibility and transparency are important. As inflation goes up your purchasing power goes down and most investors focus on the rate of return of their portfolio. The most important part of investing is purchasing power.
July 31, 2017