June 2018 – Investment Decisions Within Your Control

Global stock market prices have fallen recently amidst news of a possible trade war, rising interest rates, higher oil prices, divisive politics and a myriad of other headlines. While others try to divine what it all means for the future, we’ll take a pass, and we encourage you to do so as well.

Wise investors focus instead on matters within their control. This month we address two such situations that we encounter frequently when working with our clients. Both present clear choices, some of which entail pitfalls that astute investors can avoid.

The first article describes “a good problem to have.” Investors often come to us seeking guidance regarding how quickly they should invest a large, non-recurring lump sum of cash. We analyze market history to assess the implications of investing all at once versus the alternative of doing so gradually.

The second article describes another common situation. Prospective clients often come to us with portfolios that include equity holdings overly concentrated in a small number of stocks — sometimes in just a single firm. In this article we examine the reasons investors choose to maintain these positions and describe a rational framework for assessing the risk this poses. We propose alternatives consistent with a rational long term financial plan.

Also In This Issue:
New Gold ETFs
How to Invest a Lump Sum:  Invest Now, or Over Time?
What to Do with a Concentrated Stock Position
The High Yield Dow Investment Strategy
Recent Market Statistics 
Dow Jones Industrials Ranked By Yield
Asset Class Investment Vehicles

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