Researching financial advisor Each year you post conclusions from Dalbar's QAIB study, e.g.:
2011,
2012 (where you acknowledged that "perhaps hiring a financial advisor would provide some needed relief"),
2013,
2015 (okay, Ted posted this one),
2016 (where you wrote that "Given the huge disparity between market Indices and individual investor actual performance, a case can be made for consulting a financial planner.")
I'm no enthusiast of the Dalbar reports. See, e.g. Prof. Snowball's comments in the 201
5 link, or this
2017 analysis by Wade Pfau: "Investors may behave badly. But the DALBAR study does not demonstrate this empirically. Its calculations are wrong and the financial services profession should stop using it as a way to market the value of financial advice."
But Dalbar is where you've chosen to hang your hat. In doing so, you have you acknowledged that a 1% advisor fee can generate net positive results for average investors (directly contradicting Forbes' "dirty little secret").
Regardless of your comments about the Dalbar conclusions, that conclusion easy to extract directly from the Dalbar data (to the extent that one trusts Dalbar's methodology). The
2016 version (the latest version that seems to be available "for free") states that "Voluntary investor behavior underperformance" amounts to 1.
50%. That is more than enough to overcome a 1.00% fee paid to an advisor who helps an investor correct this bad behavior.
Even Vanguard has published a series of papers stating that "Paying a fee for advice and guidance to a professional who uses the framework described here can add meaningful value compared to the average investor experience." That's from the 2016 version of
Vanguard Advisor’s Alpha®If the whole paper's too long to read, here's a Marketwatch column (
"Vanguard: When advisers add value") from 2013 discussing the Vanguard report.
Pimco Has A Manager Who Tops Dan Ivascyn. His Name? Dan Ivascyn It's looking a bit more reasonably priced now. The div reinvestment will be at the NAV or 5 % of market price.. not a bad deal..... funny how leveraged CEF prices climb by the escalator, but use an elevator on the way down.
Researching financial advisor Edelman's wrap account (EMAP - Edelman Managed Asset Program®) starts off charging 2% for the first $1
50K in retail accounts, gradually reducing fees on additional moneys until they reach 1% on amounts in excess of $7
50K up to $1M. It then charges 0.7
5% on the next $2M.
Talk about a scam. F***in 2%... Really!?
Researching financial advisor BobC said:
Unfortunately, this will limit the search considerably, since most fee-only advisors/planners choose not to belong to NAPFA, above.
That may be true Bob, but if I type in the Columbus Ohio area, there are almost 2
5 advisers to choose from within a 20 mile radius. If I type in Pittsburgh there are are 31 within 30 mile radius. That is a pretty good starting point.
Fidelity Allows Clients To See Digital Currencies On Its Website @hank My Fidelity link, as I remember, was about six or seven links below your duplicate link ...
That might explain what happened. I first read the story on my Kindle reader. Than scanned 3-4 pages of the board to see if story had already been posted. Thirdly, I searched the web for the same story, considering several different sources. Took 1
5-20 minutes to do all this before putting it up on the board. Possibly during that time you posted your link.
Anyway, congrats on another worm
@Ted
Rondure and Grandeur Peak I just finished the GP Annual Report and June quarterly letter.
Three highlights:
1. all of their strategies, except EM Opportunities (GPEOX/GPEIX), are substantially outperforming their benchmarks, YTD (through 6/30/17). In general, the lead is between 400 - 500 bps.
The EM lag reflects the fund's small cap orientation (it trails the EM Small benchmark by much less than the EM All benchmark, reflecting the generally softer performance of small caps), valuation concerns that led to an outsized cash position early in the year, and a few individual-issue problems. It remains a five star fund and a Great Owl.
2. over the past six years, stock prices in their universe have roughly doubled with earnings have flat-lined (their word). In consequence, "Our focus is increasingly on companies with great moats and defensive characteristics."
3. Rondure is traveling with and exchanging research with the GP teams. They're happy with the level of integration between the teams. Ms. Geritz is now managing about $65 million, a very quick start.
Grandeur Peak's AUM is, they say, essentially unchanged with all of their strategies - except the Stalwarts - closed to new investors.
David
Pimco And T. Rowe Price Warn Investors It's Time To Reduce Risk
Researching financial advisor Edelman's wrap account (EMAP - Edelman Managed Asset Program®) starts off charging 2% for the first $1
50K in retail accounts, gradually reducing fees on additional moneys until they reach 1% on amounts in excess of $7
50K up to $1M. It then charges 0.7
5% on the next $2M. To achieve a blended rate of 1%, you'd have to have $2.6M invested with them.
The lead guy may be good and prudent, but for that kind of money for a wrap account I'd expect them all to walk on water. In a firm this size (around $18B AUM, 300 advisers, 32K clients [nearly all individuals], 77K total accounts), it seems one would still need to do research on the potential individual adviser within the firm.
Spending a little time on research to save thousands of dollars in fees looks like time well spent. As always, YMMV.
nobody loves a SPY Hello,
Yep, summer is here.
I am no technical expert. However, since the middle of July I am seeing in my charting of SPY the MFI (money flow index) has been in decline along with thinning volume since May. It also appears, that earnings are catching up with valuation as there has been a lot of consolidation taking place since mid July within the
500 Index along with it's breath being in decline as the number of stocks trading above their 200 day moving average has been moving down since April's peak of about 80% to currently 72%.
With this ... Perhaps, "Sell in May and come back after Labor Day" might to be the story. Anway, Labor day is now only weeks away. Also, I plan to buy a good dip as earnings and sales are improving along with expectations for 3Q17 & 4Q17 according to S&P. Thus far, the bark coming from North Korea is just that. And, there is alway going to be global conflict somewhere. Perhaps we should start shooting down a few of their missles as our government tells us they have this capacity should they launch towards the US or it's territories and/or allies. I'm thinking that the best course of action still remains through the UN and its security council. After all China and Russia voted along with us and many others for tougher scantions against North Korea. With this they want to derail the recovery of the Global economy and the best way to do this is to start and maintain hostilities with us and others.
Back at the first of the year my call was that the S&P
500 Index would reach 247
5 (or thereabouts) sometime in 2017. Recently, it made 2480+. So, perhaps it is a little ahead of itself at this point in time. In addition, August historically is a down month for stocks. Old_Skeet's market barometer closed August 4th with a reading of 146 which is up 3 points from its July close putiing it just barely in fairvaue territory on the barometer's scale. Generally, a higher barometer reading indicates there is more investment value in the
500 Index over a lower barometer reading. I'm wanting to see a reading of close to 160 before I get excited about doing any equity buying. Perhaps,
@Tony will provide us his take for the Index via the Elder Impluse System?
One might want to read what Jeffrey Saut of Raymond James is thinking. To read, Google ... Jeffrey Saut Commentary.
Skeet
nobody loves a SPY There are an interesting article in the WSJ today reporting that on Monday SPY, the SPDR S&P 500 ETF, had its lowest trading volume in 11 years. 32 million shares changed hands, down from an average of about 80 million shares a day. Of necessity, that means that "sophisticated" investors sat out.
A second story noted that during 2017 the Dow has seen its lowest intraday price volatility in six years.
At one level, the lack of volatility kills value investors, who rely on volatility to offer up occasional irrational prices. At another, it raises the prospect that something is happening under the surface - the Big Money is moving toward the door? - that might cause a bit of turmoil in our portfolios.
David
Government Money Market Mutual Funds May Be a Better Alternative To Cash Agree completely with msf. Currently getting 1.20% on cash at Synchrony bank. Even better I recently bought at Ally bank ,no penalty 11 month cd's paying 1.50% (25k minimum. Lower % for less). Transfer to brokerage takes 3 days by ACH. Both are insured, so no possibility of loss. This is a much better way to hold cash.
