We are not day-traders, nor even "week/month/year-traders". We are 3-5 year traders believing in the buy and rebalance philosophy that retains value and reduces turnover expenses. But financial trends are important and being aware of their direction has helped us invest wisely for our clients. These articles will give you a sense of how we keep a pulse on the different investment sectors (small cap value, foreign, oil, financials, healthcare, foreign bonds, etc.) and translate our insights into income for our clients.

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1. Eastern Europe and Turkey: BRIC Wannabes (2008-09-22)
   The BRIC acronym made four emerging market countries sound like more attractive investment opportunities than the other two dozen. BRICET is the term used to add Eastern Europe and Turkey to the in-crowd.
   
   
2. BRIC Countries: China (2008-09-15)
   In recent years the Chinese economy has been waxing toward ascendance. It passed Japan in November 2007 and began to rival the brightness of America.
   
   
3. BRIC Countries: Russia (2008-09-01)
   Since the fall of the Soviet Union in 1991, Russia has been trying to remake itself and regain its former glory and respect. But a lack of glasnost ("tell the truth") and perestroika ("decentralize power") still plagues the country.
   
   
4. Rebalance Accounts Regularly (2008-07-07)
   A year ago when the markets were all setting new highs, people were asking what they should do with their retirement portfolio. I answered, "Rebalance." Now that the market is setting new lows, I get the same question, and my response hasn't changed.
   
   
5. First Quarter Review 2008 (2008-04-28)
   The first quarter of 2008 made the difference between well-designed portfolios and poorly designed portfolios obvious. Check your quarterly statement to see which category describes your portfolio.
   
   
6. BRIC Countries: A Passage to Indian Freedom (2008-09-08)
   India dDuring the cold war was highly socialistic with the government exercising control over every aspect of the economy. These restrictive policies caused extremely low growth rates, derisively dubbed the "Hindu rate of growth."
   
   
7. BRIC Countries: Brazil (2008-08-25)
   In 2003, the Goldman Sachs Global Economics Department predicted the economic and geopolitical influence of Brazil, Russia, India and China (the BRIC countries) would become increasingly visible in the developed world and even dominate it by 2050.
   
   
8. Blending Index Funds to Achieve Higher Returns (2007-07-23)
   If you have been following my investment advice closely, you can probably guess that I don't favor stock-picking as the best way to meet your financial goals. But even if you favor index funds, as I do, that doesn't mean you have to use them exclusively.
   
   
9. Gold Mining Companies Glitter More Than Bullion (2008-03-24)
   Last week gold broke $1,000 an ounce. Gold advertisers and gold investment newsletters are touting their wares as though gold only goes up in value. Nothing could be further from the truth. Gold may glitter, but it is still better to own the mine.
   
   
10. How safe is your money market? (2008-01-07)
    Money market funds are a type of mutual fund that usually sells and redeems their shares for $1. The value to the consumer is the interest earnings plus the stability of getting their principal back.
    
    
11. Portfolio Allocation: Risk - Return Mix (2007-03-26)
    Portfolio construction begins with the most basic allocation between investments that offer a greater chance of appreciation (stocks) and those that provide portfolio stability (bonds). Decisions made at this level are the most important in determining how well-behaved your portfolio returns will be.
    
    
12. Foreign Freedom Investing 2008 (2008-07-14)
    You can both diversify for safety and boost your returns by adding international investments to your portfolio. In the past year, international stocks performed 2.5% better than U.S. stocks. And developed countries with the most economic freedom returned an additional 4.4% more than the international index.
    
    
13. Hedge Inflation Risk with Hard Assets (2007-06-04)
    One of the asset classes that we use to build diversified portfolios consists of hard asset stocks. These hard asset investments include companies that own and produce an underlying natural resource such as oil, natural gas, precious metals (particularly gold and silver), base metals such as copper and nickel, and other resources such as diamonds, coal, lumber, and even water.
    
    
14. We Could be in a Real Estate Bubble (2005-01-24)
    Real estate prices, especially residential, have been increasing for almost a decade. Real home prices have increased nearly 60% since 1996 – roughly triple that of previous housing booms in the late 1970s and 1980s. Home values may be peaking and ready to correct.
    
    
15. For Now, Avoid Real Estate Investment Trusts (2008-02-04)
    I received my county real estate tax bill recently, and for the first time in several years, my property tax assessment went down by about 2.8%. The drop is very small, but the trend is significant. Commercial real estate investments fell sharply during 2007 and may underperform other investment choices during 2008.
    
    
16. Hedge Funds Aren’t Worth The Risk Part 2 - Poor Performance (2005-06-27)
    Hedge funds may seem attractive to the casual observer, but the naïve investor who is duped by their deceptive marketing may experience several years of dismal returns, excessive fees and irreconcilable conflicts of interest. If you own or are considering investing in a hedge fund, make certain you’ve done due diligence on the conditions, performance and compensation.
    
    
17. Italian Communists and Beautiful Girls (2005-08-01)
    Last month, The Soccer Organization of Charlottesville Albemarle (SOCA) sent its Girls fourteen and under (U-14) team on a three country tour of Europe. As a parent and assistant coach I had the pleasure of seeing first hand three of the twenty six freest economies in the world. Italy is a beautiful country and this was my fourth visit in thirty years.
    
    
18. Breaking Spaghetti: A Seven-Year Financial History (2007-04-09)
    For the past seven years US markets have experienced the ripple effects of the tech sector's correction in 2000. The latest waves have been in the slow decline of the housing market and, now, in the weakening of the commercial real estate market. While economists can't always explain the timing of these ripple effects, the corrections in the market are much like the physics of spaghetti.
    
    
19. Hedge Funds Aren’t Worth The Risk Part 1 – What Are Hedge Funds? (2005-06-20)
    Hedge funds use a variety of non-traditional strategies in an attempt to minimize downside risk, a technique called hedging, hence their name. Greed is the flaw with Hedge funds. Hedge funds don’t invest in growth, they speculate on change. And they have a dark side.
    
    
20. P/E Ratio (2006-10-02)
    Stock brokers and investors often look at certain fundamental information about a stock when determining if that stock is a good stock to purchase. One of those fundamental indicators is the "P/E ratio" of a stock. While we favor low P/E stocks, often called value stocks, buying a stock simply because it has a low P/E is like assuming a car is fast because it has racing stripes and a number on the side.
    
    
21. Foreign Freedom Investing 2007 (2007-07-09)
    Adding international investments to your portfolio is a good way to diversify for safety while boosting returns. On average, international stocks appreciate more than US stocks. What's more, companies located in countries with the most economic freedom typically appreciate more than the broader international average. Over the past year, countries with the most economic freedom appreciated 7% more than the international index.
    
    
22. Keeping Expenses Low While Building Your Portfolio (2007-07-30)
    Q: I enjoyed reading about your "Rocks and Sand" technique to keep expense ratios low. I own iShares EAFE (EFA) for my foreign rock. What no-transaction fee foreign mutual fund that tracks the EAFE index do you recommend for monthly deposits until I purchase another "rock?" - Steve
    
    
23. Creating A Ladder for Retirement Income (2006-01-16)
    Laddered bonds are an effective means of finishing that climb to financial success. For the 75 million baby boomers who begin turning 60 this year, this simple investment tool can help America’s soon-to-be retirees maintain financial health in the years to come. If you are retired or planning on retiring soon, a tailor-made laddered bond portfolio can provide a dependable income stream without compromising your growth investments—even during your retirement years!
    
    
24. Evan Almighty: Financing a Block Buster (2007-06-18)
    This Friday, June 22, 2007, the movie Evan Almighty opens in theaters. Filmed in and around Crozet, I had the opportunity, like many in Charlottesville, to be an extra in the movie. Watching the movie being made from the inside only increased my respect for the business of movie making. Last week I had a chance to see Evan Almighty at the Charlottesville Premier. The wait was worth it.
    
    
25. The Dow Jones Industrial Average (2006-10-09)
    The Dow set a new all-time high last Tuesday. While most investors follow the numbers from the Dow Jones Industrial Average index, they are most likely invested in funds that mimic the S&P 500. However, neither index represents a diversified portfolio. Understanding just how the Dow works allows savvy investors to see past this index when evaluating the performance of their investments.
    
    
26. 2007 in Review (2008-01-14)
    A valuable exercise this time of year is to review your investment returns to analyze what occurred in the broader asset classes. First, check to see if your specific investments are capturing a majority of the potential market return of their asset class. Second, evaluate whether your asset allocation is optimized to balance risk and return.
    
    
27. Australia: Investing Down Under (2007-01-22)
    On January 26, Australians celebrate their annual Australia Day to commemorate the founding of the Colony of New South Wales in 1788 and their proud national history. This year investors down under have even more reason to celebrate.
    
    
28. Investments in China (2005-03-14)
    In a recent survey of leading executives, China is currently the most attractive destination for foreign investment. While we recommend that investors have significant stock investments in foreign countries, we have serious qualms about China.
    
    
29. Hedge Funds Aren’t Worth The Risk Part 5 – What Hedge Funds Do Right (2005-07-18)
    Hedge funds are encumbered by high fees, limited transparency, inaccurate returns, poor liquidity, and practically no regulatory control. But they do incorporate some investments strategies that you can emulate.
    
    
30. Italian Mafia Coming to America Soon (2005-08-08)
    Last month I had the pleasure of traveling with SOCA’s U-14 Girls Express team throughout Europe. We have chronicled the high regulatory burden that Italy puts on its citizens and the way that regulation stifles growth. The other major problem within Italy is the corruption and organized crime throughout the country.
    
    
31. Familiarity Breeds Concentration (2007-04-16)
    Investors have been told, "Invest in what you know." While this may have been a good adage for avoiding investing in companies with no business models, it is a poor rule of thumb to use when building diversified portfolios.
    
    
32. David John Marotta: What Is A Contrarian? (2006-08-14)
    Much of my financial instincts were developed watching my parents manage money on a daily basis. Even now, one of the highest compliments that I can be paid is for someone to say, "The apple didn’t fall far from the tree." Last week my father authored specific examples of contrarian investing. This week I’d like to show how contrarian investing is at work when you regularly rebalance your portfolio.
    
    
33. George Marotta: What Is A Contrarian? (2006-08-07)
    A contrarian is one who takes a side different from the masses. When everyone is going in one direction, a contrarian chooses to go in the other direction. I confess. I am a contrarian. In investment terms, it is difficult to be a contrarian.
    
    
34. The French Kiss of Death (2006-02-27)
    Over the past decade, the French economy has been given the kiss of death by the burden of socialist "feel-good" labor laws. The French government’s intentions were good, but cumulatively they have poisoned French entrepreneurial competitiveness and paralyzed their economic growth.
    
    
35. Hedge Funds Aren’t Worth The Risk Part 3 - Poor Compensation Structure (2005-07-04)
    Though no accurate reporting exists, studies suggest that Hedge funds often under-perform traditional mutual funds. Part of the drag on their returns is a result of their structure compensating hedge fund managers better than hedge fund investors.
    
    
36. Using S&P 500 Index Funds Contains Hidden Risks (2004-10-18)
    Many investors tend to make the S&P 500 Index the backbone of their investment portfolio. Others use the S&P 500 as a benchmark to measure the health of the market or their own portfolio. Doing so is a very risky strategy that greatly increases the danger of failing to meet your financial goals.
    
    
37. Country Specific Investing Pays Dividends (2005-07-25)
    The iShares MSCI EAFE fund (EFA) based on the International Index lost 1.92 percent during the first half of 2005. For larger accounts, we recommend a strategy designed to enhance the international index with a diversified collection of countries that on average should do better than this International index.
    
    
38. Eighty - Twenty Rule of Asset Allocation (2006-03-13)
    In 1906, Italian economist Vilfredo Pareto created a mathematical formula to describe the unequal distribution of wealth in his country, observing that twenty percent of the people owned eighty percent of the wealth. The 80/20 rule has been recognized by many as a universal principle of life. Its application even wins a place in the logic of asset allocation.
    
    
39. With Great Characters Come Great Stock Returns (2007-08-06)
    Last week I attended the San Diego International Comic-Con. The four day event has grown from covering comic books to all things associated with popular culture. But comic books are still at the heart of the convention, and Marvel Comics is still the industry leader.
    
    
40. Bush policy taxes wealth by devaluing the dollar (2004-09-06)
    “The art of taxation,” said the French finance minister Jean Baptist Colbert, “consists in so plucking the goose as to get the most feathers with the least hissing.” The Republicans have proven themselves the better pluckers.
    
    
41. The Guillotine of French Economic Freedom (2006-02-13)
    The financial outlook for France is not promising. We can learn from their decline. The Heritage Foundation’s survey last year of 155 countries ranked France among the top-ten countries to lose the most economic freedom. The French people are paying the price. According to a study by T. Waning, economic freedom is to blame for France’s nightmarish unemployment rates brought into the public eye by angry youths protesting the lack of liberte, egalite, fraternite.
    
    
42. O Canada, The True North Strong and Free! (2006-06-26)
    July 1st is Canada Day, the day our northern neighbors celebrate their union as the North American colonies of Great Britain. We should celebrate too. Not only are they good neighbors but a good investment.
    
    
43. The Celtic Tiger: The Greening of Ireland (2007-03-12)
    The Republic of Ireland and its economic boom period knows as the "Celtic Tiger" is another textbook case study in economic freedom. Ireland's strong economic performance is a direct result of its increased economic freedom and reduced government regulation.
    
    
44. Foreign Freedom Investing 2006 (2006-07-24)
    On average, international stocks appreciate more than US stocks, and stocks in countries with the most economic freedom appreciate more than the international average.
    
    
45. Timing the Market Isn’t All Fun and Games (2005-12-19)
    Market timing is the attempt to switch a significant portion of your assets between different types of investments in an effort to maximize profits. If this is your investment strategy, good luck, because you’ll need it.
    
    
46. Bond Basics (2006-10-23)
    Bonds are boring. But smart investors use them for diversification. Understanding some basics will help you evaluate the risks and rewards of owning bonds in your portfolio.
    
    
47. The Value of Emphasizing Value Stocks (2005-02-21)
    Value stocks should be over emphasized in your holdings of US stocks both because of their historical averages and the current economic climate. Value stocks are those that have a lower-than-average price as measured by such metrics as price-to-earnings or price-to-book ratios.
    
    
48. Socially Responsible Investing (2006-07-17)
    Seeking to use your investment selection in order to be socially responsible is misguided. Though it may assuage a guilty conscience, it is an ineffective tool for corporate change. If you put so many constraints on your portfolio that you cannot meet your financial responsibilities, then you have taken the speck out of your brother’s eye but failed to notice the log in your own eye.
    
    
49. Hedge Funds Aren’t Worth The Risk Part 4 - High Fees and Poor Regulatory Control (2005-07-11)
    We’ve criticized hedge funds for their closures, compensation scheme, poor performance, illiquidity and tax inefficient. As if these hadn’t upset our friends in the hedge fund world enough, we have two more concerns: their high fees and lack of regulation.
    
    
50. Salzburg: Seasoned with White Gold (2005-08-22)
    In Austria our soccer team visited the Hallein Salt Mine about 30 miles south of Salzburg. Lessons about the white gold from ancient salt mines are just as applicable today to the black gold of oil reserves.
    
    
51. Austria and the Road back from Serfdom (2005-08-15)
    Austria is the 19th freest economy in the world. Much of Austria’s economic freedom is the direct result of the most famous Austrian economists, Friedrich August von Hayek, who won the Nobel Prize in 1974. Hayek is best known for writing "The Road to Serfdom" - his steadfast defense of liberal democracy and free-market capitalism against a rising tide of socialist and collectivist thought in the mid-20th century.
    
    
52. The United States - Land of the Free (2006-07-03)
    This year, the US reclaimed its spot among the top ten countries in the world with the most economic freedom according to The Wall Street Journal/Heritage Foundation 2006 Index of Economic Freedom. But for a nation which considers itself a paragon of liberty, watching other countries enjoy more economic freedom than we Americans comes as an affront to our self image.
    
    
53. Cyber Monday (2006-11-27)
    Today has been tagged 'Cyber Monday' by the retail industry. Like the term 'Black Friday' which refers to the Friday after Thanksgiving, Cyber Monday refers to the Monday three days later. Just as Black Friday is considered the biggest traditional shopping day, Cyber Monday is supposed to see a significant spike in online sales.
    
    
54. Germany: Worst Economic Weakness May Be Over (2005-08-29)
    Germany’s economy is one of the weakest in the EU. Over the past three year Germany has shown little growth. Their stock market returns have been poor. IShares German (EWG) has a one, three, and five year annualized return of 12%, 8.5%, and -3% respectively. These returns are all two to three percent under the International Index.
    
    
55. Outlook May 2006 (2006-05-08)
    Recently, I received a letter asking for advice on whether an investor should sell a particular bond fund and reinvest the money in an appreciating stock fund. Questions like that are unanswerable without comprehensive financial planning, but I suspect the answer should be to keep the bond fund.
    
    
56. 2005 in Review (2006-01-30)
    If your returns were poor last year, you were in good company. The S&P 500 gained only 4.9% and the Dow was down 1.4%. Indexes, however, are poor indicators of what wisely invested balanced portfolios should return. A better diversified portfolio would have earned over 10% in 2005.
    
    
57. Am I Diversified? (2003-08-18)
    While everyone agrees that you should be diversified, it is important to know what your manager means by the term "diversified."
    
    
58. You’re Fired! Now Get to Work! (2004-04-26)
    “You’re fired!” can be an opportunity to work for yourself. But the best two words you might hear are yourself saying, “I quit.” Working for yourself is risky and frightening, but the financial freedom and opportunities you gain are significant.
    
    
59. Economic Freedom Part 2: Let Freedom Ka-Ching (2004-04-19)
    Freedom matters. Those countries with the most economic freedom provide the best place for your foreign investments.
    
    
60. Economic Freedom Part 1: Invest in Countries with Economic Freedom (2004-04-12)
    Protectionism doesn’t work. Trade, not aid makes countries better off. And countries with economic freedom will experience the most lucrative trade.
    
    
61. Speed is not critical when investing (2004-01-26)
    An investor is like an orchard farmer who goes to the store to buy some peach trees. A speculator buys some peach trees because he sees that the store is running out, and then stands in the parking lot hoping to resell at a profit.
    
    
62. Five Reasons to Invest Outside the US (2003-08-25)
    Here are five reasons why you need to continue to have a significant foreign stock investment.
    
    
63. Atkins Investing Part 2: Low-Carb Investing Has Resulted in Healthy Profits (2004-06-28)
    Ever since the term “Atkins” first appeared on the Lycos 50 at the end of 2002 those companies (see http://50.lycos.com) that catered to the Atkins diet outperformed the S&P 500, which earned 25%.
    
    
64. Atkins Investing Part 1: Low-Carb Trend Has Caused Some Companies to Lose Weight (2004-06-21)
    About one in five Americans are practicing some version of a low-carb diet. Investors in food companies would have done much better had they foreseen this trend.
    
    
65. Gas Prices Part 2: Remove Taxes and Price Controls on Gasoline (2004-06-14)
    High prices are good when caused by increased demand or a shortage of supply, but artificially high prices are not.
    
    
66. Gas Prices Part 1: High Gasoline Prices Are The Best Energy Policy (2004-06-07)
    High oil and gasoline prices are good. Without any coercion high prices set energy policy more effectively than any government program could.
    
    
67. The Implications of A Sharply Rising Money Supply (2003-09-08)
    A policy of accelerated money growth by the Fed will have some significant consequences. Renamed: “Gauge economy by keeping track of money supply.”
    
    
68. Foreign Trade Not Aid Encourages Freedom Abroad (2004-04-05)
    Foreign aid is like a parent playing for their child’s soccer team. The parent may score some goals in that game, but you will have a weaker team as soon as the parent steps off the field.
    
    
69. How Risky Do You Want To Be? (2003-09-15)
    Greed and fear give way to doing what it takes to have the best chance reach your financial goals. Renamed: “Investment plans require clear goals.”
    
    
70. Will the U.S. go the way of Japan? (2002-11-18)
    The Japanese economy has suffered a 12-year decline. Are we in the US likely to follow the Japanese pattern of economic and stock market decline?
    
    
71. Strategies for Today’s (Fall, 2002) Stock Market Investing: Why your portfolio many not be ready for (2002-09-11)
    A great many investment portfolio’s are broken and need fixing. Investors have mistakenly assumed that they should continue doing the same things that worked during the past bull market. The times and circumstances have changed, and a prudent investment strategy should adjust accordingly.
    
    
72. DOW 36,000 OR 6,000??? (2000-03-02)
    The Dow Jones Industrial Average is now trading at a level of 10,000. Some believe that it is hugely over-valued, that we are in a bubble, and that a big correction is overdue. Others believe the contrary that it is actually undervalued and should continue to go higher. Which school is correct? Let’s examine the arguments and then you can be the judge.
    
    

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