Thoughts regarding the stock market, investing, and the economy from My Portfolio Guide, LLC
Thanks for visiting Dear Mr. Market…
This blog attempts to educate and entertain investors about the world of finance and the stock market. It’s brought to you in the form of letters written to the fictional character, “Mr. Market”.
This character was created by Benjamin Graham who developed the Value based approach to investing in the 1930s. In Graham’s book, “The Intelligent Investor”, the character of Mr. Market is always willing to either buy your stock position or sell you more; sometimes at what appears to be a reasonable price and then at other times at a flat out insulting one.
Mr. Market can be very cruel and also quite rewarding to investors ; always playing with their emotions. He is volatile and very unpredictable.
Regardless of how much you study him and try to figure him out, Mr. Market can simply humble even the most educated and experienced investor…
Has your alma mater or favorite team already been bounced from the NCAA basketball tournament? My Portfolio Guide can’t change that fact but we can offer you a fresh chance with our annual spin on March Madness. For the ninth year in a row we are rolling out our unique way to share investment themes and overall thoughts on the stock market.
We’re proud to say that My Portfolio Guide was the first financial advisory firm to publish a March Madness investing tournament where we share our picks and match them up against each other! We break down and assign each of the four “regions” with an asset class and then pick teams (companies) that we think have the best chance at doing well relative to others.
The most boilerplate of portfolios has won out by riding the safe bet over the past few years. This is akin to the March Madness office pool where your coworker, who knows nothing about sports and couldn’t differentiate between a basketball and a football, wins the whole pool of money by simply picking the highest seed in each bracket. What we mean by this with regards to investment asset classes is that since 2013 the Large Cap asset class has been the easy money pick. If you had a decently diversified portfolio (which by design should include exposure to International and Emerging Markets), you lost to the boilerplate and simpleton portfolio that is mainly weighted towards Large Cap. Continue reading →