Dear Mr. Market:
The stock market is made up of thousands of choices and one easy way to gain exposure to it is via mutual funds. While we don’t want to broad brush the topic, we’re going to get right into it and explain 100 reasons why you or your financial advisor should not be using mutual funds versus ETFs (Exchange Traded Funds).
Continue readingDear Mr. Market:
We certainly spend a lot of time writing to you about the stock market and all the twists and turns it brings investors. Today, we have the pleasure of mixing things up a bit as we dive into something far larger and more intricate than the stock market; we’re going to talk about the bond market!
On a recent trip out to Denver, CO My Portfolio Guide had the opportunity to meet with Troy Johnson, CFA and Director of Fixed Income Research at Denver Investments. We were able to ask him and his team several questions about the bond market and how they’re navigating it in these interesting times.
My Portfolio Guide: First and foremost, thank you very much for making yourself and your team available. As you know, we own positions in the Westcore Plus Bond Fund as well as the Westcore Municipal Opportunities Fund. We understand your team was awarded a Lipper Award. Without necessarily giving us a pitch on your firm, could you briefly expand on the recent accolades?
Westcore: The Westcore Fixed Income funds won the Lipper Fund Award for best fixed income small fund group for the three-year period ending November 30, 2016, placing first out of 74 eligible fund families. The award was granted based on Lipper’s measurement of risk- adjusted returns across our multiple fixed income fund offerings. We believe that winning the award affirms the soundness of our approach across multiple strategies as well as the hard work and talent within our fixed income team.
My Portfolio Guide: Excellent, and congratulations on the awards and success. Related to this, could you share your opinion on what makes your firm or approach different than some of the larger bond shops?
Westcore: We utilize an investment approach that emphasizes income and security selection rather than a focus on trading. This generally results in a heavier weighting towards credit oriented issues that offer enhanced income. We recognize rigorous fundamental research is a necessary component of such an emphasis and differentiate ourselves within that process in the following manner: Continue reading
Dear Mr. Market:
If you’re smart…does it imply that you’re always right? In many instances that may often be the case, but when it comes to investing, some of the most brilliant people on the planet are reduced to buffoons by irrational and unpredictable markets. When you add in a 24/7 media cycle and the fact that human beings are emotionally driven creatures…your IQ (or stubbornness) can actually work against you.
As huge fans of behavioral finance we also want to once again remind you that your own brain (whether it be “smart” or pedestrian) is wired to connect certain dots even if the conclusion is wrong or completely random. One famous adage will serve as the theme for this entire article:
“Even a broken clock is right twice a day.”
Take a brief moment to read the following article that surfaced last week: Continue reading
“When there is blood in the water…the sharks will come!”
This isn’t a quote from ‘Shark Week’ on the Discovery Channel, it is an accurate summary of what is currently happening as financial firms are targeting a huge demographic that will continue to grow in our country. The baby boomer generation (born 1946 – 1964) has made a dramatic impact on our country throughout their lives and now they’re all entering or nearing retirement. Every single day there are 10,000 additional baby boomers turning 65! As they enter retirement and roll over their retirement accounts, they find themselves being targeted by various firms attempting to ‘feed’ on their hard-earned savings. This year FINRA (Financial Industry Regulatory Authority) has filed several ‘cease-and-desist’ orders against financial firms for these practices and also launched the FINRA Securities Helpline for Seniors at 844-57-HELPS or 844-574-3577 in an effort to address this growing issue.
FINRA reported that the hotline received several hundred calls as soon as it was opened from individuals ranging in age from 45 – 99. The regulatory agencies realize they need to get ahead of this crisis as it will only continue to grow with each passing year. This spring the SEC and FINRA released a report titled “National Senior Investor Initiative”, the study focused on 44 national firms, looking at the products and services that were sold by their representatives to senior investors. Below are the results based on the revenue generated and the frequency that they were purchased at the firms: Continue reading
Dear Mr. Market:
How time flies! Our first letter to you was on March 20, 2013. This marks our 100th article. Over the last two years we have covered a variety of topics and events that our clients and readers have been confronted with. Over 15,000 individuals have visited the website and our top rated articles have been viewed over 12,500 times!
As we look through the library of topics we have assembled, there are several articles that stand out for various reasons. It’s challenging to pick favorites so we’ve decided to share the most popular “letters” we’ve written: Click here to read more…
Dear Mr. Market: 