Diversification has hurt global allocation portfolios this year. However, it is still one of the most important tools to control risk and enhance returns in the long term. 

Diversification has hurt global allocation portfolios this year. However, it is still one of the most important tools to control risk and enhance returns in the long term. 

We propose a simple and intuitive method to show that it is more rewarding to adopt a pragmatic approach in investing: being an investor and speculator combined results in the best returns and smallest risk. We propose a simple and intuitive method to show that 

Active funds have difficulty to outperform index funds, at least long enough to test many investors’ patience.

We review permanent, risk parity and alternative portfolios and discuss outlook of the major asset classes they are based on. 

We review core mutual funds used in major brokerages. They represent core asset classes. 

We review key index ETFs that represent core asset classes. 

We review total return bond funds and their portfolios. 

We review some of advanced portfolios and point out how to properly use them. 

We discuss commodities as an asset class and point out that they should be still kept as a candidate asset class, at least for tactical asset allocation strategies. 

We propose a core satellite portfolio solution to 401k accounts that have active constant new contributions. 

At the current market environment, it is pertinent to explore how to adding a risk management layer to a strategic buy and hold portfolio. 

Finding the best investment strategy is everyone’s quest. However, it is dangerous to switch impulsively without doing enough due diligence. 

We discuss how to establish a core satellite portfolio in the current market condition. 

Recent stock market correction creates an opportunity for investors to reposition their portfolios that include strategic, tactical and core satellite. 

We review balance funds, permanent portfolios and other ‘unconventional’ hedge portfolios as well as tactical funds. 

In the midst of a market rout, one should stay on course in a well defined plan. 

The latest newsletter collection that incorporates newsletters since last update in March.