Gary Allen on Business – Sunday, April 26, 2015 – Podcast Now Available

Pursuing A Better Investment Experience

graph waterOn the program this week, I continue and conclude my sneak peek on our new E-book, Pursuing A Better Investment Experience. The E-Book is currently going through graphic design and should be available soon. I will certainly let you know when it is ready for distribution. The great news is the price is right… FREE!

In the first segment I talk about what investors should focus on, that is, what they can control. It is not worth the anxiety, the frustration and the futility of trying to tame the uncontrollable. Instead spend your precious energy, time and resources on things you can control:

1) Have a plan that is customized to you;

2) Manage expenses;

3) Controll portfolio turnover; and

4) Maintain your focus and discipline through good markets and bad.

In segment two of the program, I discuss the problem with building a portfolio based on the hot sector or trend. While diversification is not the sexiest thing in the world, it does have its place in a prudent portfolio. Chasing hot stocks, hot sectors or hot trends is truly a speculative endeavor at best.

Segment three of the program is a high level overview of the factors identified by academic research that drive financial market returns. In a nutshell, the factors are:

1) How much in stocks vs. bonds; (Asset Mixture)
2) Your exposure to small vs. large companies;  (Small to Large)
3) Your mixture of low relative price stocks vs. high relative price; (Value vs. Growth) and
4) Your ratio of high vs. low profitability firms. (Profitability)

Of course, this does not mean a portfolio will be completely immunized against security-specific risk. But it is a way of diluting those influences and finding a balance between seeking to improve expected returns and striving for appropriate diversification. I hope you enjoy this week’s program.

Good luck and as always, thank you for listening to my program.

All the best,

Gary

gallen@prudentllc.com

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Gary Allen on Business – Sunday, January 18, 2015 Broadcast – Podcast Now Available

Gamble InvestmentsThe Value of Good Advice

On this program, I cover several topics of interest to investors. Often it is so easy to lose your way due to the constant barrage of information about money and finance. All to often, others will feed off of our personal fears as well as our greed. The result of this dangerous mixture is often a poor investment experience. We try to make investing more approachable and less daunting. Ultimately, the money is yours and you should be in control. Too often, people blindly respond to a good sales pitch and fail to become an informed consumer.

The cartoon above is one of my favorites. Unfortunately, I think many people feel this way when they work with an advisor. It does not have to be that way. Common sense along with some basic information should help to overcome this problem. Investing is something very different from gambling or speculation. Hopefully, we can help you with that. This week we highlight the following for you:

Segment One – The Value of Good Advice

Segment Two – The Blue Chip Blues vs. Diversification Rules

Segment Three – Beware the Slick Salespeople Selling Despair And Fear

Segment Four – Living With Uncertainty

As always, I hope you enjoy the program and thank you for listening! – Gary

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Gary Allen on Business, Sunday March 30, 2014 – Podcast Available

On the program this week I conclude my coverage of the five choices or decisions that everyone faces when they want to be a successful investor. In summary the five choices are:

1) Should you do it yourself or hire someone to help you manage your investments
2) The asset allocation decision (stocks, bonds, cash)
3) Whether to diversify or not (broad and deep diversification or something less)
4) Active vs. Passive (To beat the market or to find the most efficient way to harvest market returns)
5) How often to trade your portfolio (rebalancing)

In this program I cover items three, four and five on the list. I also spend part of one segment highlighting the excellent and timely article from Jim Parker entitled, “The Devil Wears Nada”

I hope you enjoy the program and find it useful and informative. Until next time, all the best – Gary

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