On June 26 the share prices for Citigroup and Bank of America, both of which were already testing multi-year lows, tumbled by more than 4 percent. Our high-yield Dow (HYD) model, which holds both stocks and declined sharply as a result, will buy more of these shares if they continue to provide a high relative […]

Sports are often said to be a metaphor for life, and every four years the Olympic Games provide us with an inspirational view of athletic prowess. Through endurance athletes, in particular, we are offered the chance to witness perseverance in the face of adversity. This year in particular investors may appreciate marathon runners who, at

Our long-time readers are well aware of our skepticism toward “active” money managers; those who seek to outperform the overall stock market by picking “mispriced” stocks or by attempting to time the market’s gyrations. Our recommendations are instead based on the tenets of Modern Portfolio Theory (MPT) and the notion of market efficiency. Active managers

Investors have experienced the most dramatic upheaval in capital markets since the Great Depression. On several recent days your portfolio has probably experienced tremendous swings. However, thanks to prudent diversification that includes portfolio insurance in the form of gold, cash and short-term bonds, and most importantly by avoiding needlessly complex investment vehicles, we are confident

The current bear market is one of the most severe on record. Before reviewing the recent performance of our recommended asset classes, however, we encourage readers to consider the chart on page 74 which puts the current market in historical perspective. The rising trend lines designate the bull market periods occurring since 1965. The falling

The equity chart to the left is not pretty. Asset classes across the board have continued to spiral downward as the “subprime crisis” that began a year ago has blown into a credit crunch of epic proportion. The damage is far-reaching. As 401(k) and IRA balances dwindle, millions of workers may have to delay retirement.

Risk-Free Rate of Return: the return on a risk-less asset, often proxied by the rate of return on Treasury securities. Students of business and economics are taught, invariably, that buyers of U.S. Treasury bills, notes or bonds can be certain of receiving the interest payments they are owed, as well as the face value of

Global equity markets have plummeted. The chart to the left tells the story. Now, more than ever, it is essential that investors avoid panic and remain committed to disciplined investing. • I will understand my own circumstances and formulate an investment plan based on my needs, not in anticipation of market trends.• I will remind

The threat of recession is all over the news, forcing many investors (those without a plan) to panic. Our readers should take heart; our recommended portfolios have been researched rigorously, and while no investment plan is perfect, we are highly confident that those who do not waiver from our approach will be rewarded for their