Newsletter Archive

Marotta On Money - April 25 Newsletter

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Asset Allocation

Time to Rebalance in May and Call It a Day (04-25-2011)

The old stock market adage "Sell in May and stay away" suggests you can avoid risk and increase return by getting out of the markets during the summer. Seasonal investing hit a high after Sven Bouman and Ben Jacobsen's 2002 study. The drop in the markets that summer also contributed heavily to the trend. Between 1950 and 2002, returns for November through March averaged 9. 06% versus only 3. 18% between May and October. Since 2002, however, the trend has been more muted. The recent difference between these numbers is statistically small for the wide range of returns.
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In The News

David Marotta Quoted by Wall Street Journal Personal Finance

David John Marotta's article Where in the World Should You Invest? was quoted by the Wall Street Journal's Personal Finance section.

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Investment Strategies Part 1: Rebalance into Stable Investments in an Appreciating Market (05-25-2009)

Diversifying your portfolio means finding assets that have value on their own merits but do not move exactly alike. A critical investment metric called "correlation" is used to construct a portfolio most likely to meet your personal financial goals. Correlation measures how much two different investments move together, measured on a scale of positive one (+1) to negative one (-1). A perfect correlation (1. 00) would mean that both investments always move in the same direction with the same magnitude. A perfect inverse correlation (-1. 00) would mean that two assets always move in opposite directions.
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assetallocation

Asset Allocation