Blog Posts tagged "correlation"

Income Report Card | February 2018

Author: Nathan Rowader
Date: February 20, 2018
Category: Asset Allocation, Financial Planning
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Global stocks finished at a gain of 5.64% in the month of January, just slightly off their all-time high. Emerging market (EM) stocks led the way once again with a gain of 8.33%.Europe and Japan also marked strong gains for the month with an increase of 5.40% and 4.58%, respectively.However, much of these gains (greater than half) can be attributed to appreciation of the local currency. While appreciation of EM currency relative to other major currencies did push prices, these markets would have still outperformed all developed markets. This distinction is crucial since the performance of EM stocks appears to be organic while other foreign markets are largely a function of appreciating currencies, a dynamic that may or may not persist over time. U.S. stocks fared well in January with again of 5.73% while small-cap U.S. stocks increased by 2.61%. There has been a notable improvement in the performance of energy stocks following a weak 2017.Strength in this part of the market could help keep the overall stock market rising.

Managing Risk | Part 4: Putting It All Together

Author: Nathan Rowader
Date: October 2, 2014
Category: Financial Planning
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In the past few weeks we have discussed the complicated nature of averages, explored a simple method for forecasting returns and discovered how volatility-based rebalancing has the potential to deliver some great returns for investors. This week, we are going to put it all together using each element of the portfolio construction process.

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