Over the last several weeks, much attention has shifted to the S&P 500 index as it reached and eclipsed new highs. For some investors, this was a non-event - after all, it’s a normal occurrence historically within bull markets for the S&P 500 to reach new highs (click on the chart for a larger version): Stock Market Price Return Since 1900 Source: FactSet, J.P. Morgan Asset Management. Data shown in log scale to best illustrate long-term index patterns. P/E ratios shown at price peaks and troughs use trailing four quarters of reported earnings and are shown as a one year average. Past performance is not indicative of future returns. Chart is for illustrative purposes only. Data are as of 6/30/13. [+] Read More

US stocks have been outperforming international stocks for nearly all of the current bull market. From March 9, 2009 – August 5, 2013, the S&P 500 (SPY) has risen 124.34% compared to just 76.32% for the rest of the world (MSCI All Country World Index ex-United States: CWI). It follows that if you have a globally diversified portfolio, you may have noticed your US stocks outperforming your international holdings recently. Considering that Europe is still in the mire and China is showing signs of slowing, it’s possible this trend could continue. Would it be wise, then, to move some money away from your international equity strategy and rebalance towards a more US-based strategy? Before diving into that question, it’s important to consider how one should approach constructing an appropriate portfolio. Investing isn’t about putting all your money in the best performing asset class so as to generate the highest returns. This would likely result in a very concentrated and risky portfolio diversification strategy. Instead, since investors don’t know which sector, country, or category will outperform moving forward, it’s important to consider having exposure to various sectors and countries as part of a well-diversified portfolio. [+] Read More

PBS FRONTLINE’s recent special about financial planning(1) in the retirement industry should be watched by anyone planning for or currently in retirement. It suggests that these investors need to take control of their financial futures by 1) ensuring their advisor acts as afiduciary and makes recommendations in accordance with the investor’s best interests, and 2) specifically knowing and understanding the fees associated with those recommendations. We couldn’t agree more. There is a difference between the responsibilities of a FINRA Registered Representative and a SEC Investment Advisor Representative. Although one could make the argument that both have to act prudently, it’s crucial to understand the difference in the roles as they could impact your long-term retirement goals. [+] Read More