Global Index (ETF) Portfolio Considerations (American View)
Changes in asset allocation considerations since last report: all of the changes in this report are domestic in nature and influence the Opportunity Target more than the Stable Target.
Asset Allocation Discussion (American View)
In this brief we offer a discussion on a practical method of how asset allocation can be used to satisfy an investor’s desire for stability and opportunity within an investment portfolio. It is our objective to create a solid basis for understanding changes in allocations when considering objectives, risks and market characteristics. The major sections start with a global view and then continue to refine focus until the allocation is centered exclusively on domestic sectors. At the end of the brief, there is a special section where consideration is given to portfolios that are concentrated in a single specific industry and how an investor can adjust a portfolio to reduce the impact of concentration.
ESP – S&P Global Announces Commodity Weights for 2018 Index
S&P Dow Jones Indices today announced the composition and weights for the 2018 S&P GSCI. The S&P GSCI is a world production-weighted commodity index which, in 2018, will be composed of 24 exchange-traded futures contracts on physical commodities across five sectors including: energy, industrial metals, precious metals, agricultural and livestock.
Merger Consideration Brief (November 2017)
Over the past several decades we have watched a dramatic increase in the number of mergers and acquisitions that have taken place throughout all industries. We wondered if there was a stock based valuation rationale behind mergers that indicated the probability that a company would be involved in a merger within a reasonable period of time. While we do not have a clear signal that our valuation model is a crystal ball, we have noticed a higher frequency of M&A activity amongst stocks we have categorized as A+ in the Merger, Acquisition, Buyout Factor (MAB) calculation.
USA Stock Consideration Report (November 2017)
Expectations increased slightly for large cap market capitalization stocks to 106.0% an increase of under one percentage point while mid cap expectations increased to 116.5% up from 115.3% and small cap was nearly unchanged at 111.3%. Over valuation pressures remained in check even with large cap stocks posting over a 15% return for the year followed by mid cap with over 10% and small cap remaining positive at nearly 7%. Small cap has struggled all year trying to post positive results, so reaching this level of return without exceeding normal valuations is welcomed.