PCM News

Should You Outsource Your Portfolio Strategy?

Yes, according to a small but growing number of advisors using ETF managed portfolios. Asset allocation is widely considered the leading factor for portfolio design and management. A number of studies find that 90% or more of an investment strategy’s performance volatility is directly related to selecting asset classes and choosing weight— even if the game plan targets individual stocks and bonds. Why, then, are a rising number of financial advisors farming out this critical aspect of money management to fund companies and boutique shops?.

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Market Pulse

PCM Market Outlook

I believe that the U.S. financial markets may be nearing the end of the third stock market bubble in fifteen years. By some measures, equity valuations have reached the most extreme point in history. Market "internals" are starting to break down. Unless one has a 25 year time horizon, now is one of the worst times in history to enter into a traditionally allocated "buy and hold" equity and bond portfolio.

Using seasons as a metaphor, it is late fall in the U.S. equity market and economic cycle. There is a winter season coming. Between now and 2022, broad U.S. equity indexes are at risk of falling 50% to 60%.

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