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Jul 16, 2014 | Post by: modelcap Comments Off

1H-2014: Consistent Risk-On Not Influenced by Geopolitics –

The first half of 2014 was characterized by a conflict between strong fundamentals and perceived risks. Many observers were puzzled by the equity market’s continued strength, and predicted negative outcomes this year. However, fundamental economic data that our tactical asset allocation model has determined to be important for equities, have been

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Jul 10, 2014 | Post by: Jocelyn Gilson Comments Off

Liquidity Will Continue to Support Asset Prices

All major central banks – the Fed, ECB, and BoJ – bought bonds since 2008, creating tremendous liquidity (see chart). This keeps interest rates low, and in turn, creates real economic benefits – low borrowing costs help consumers, businesses, and the economy in aggregate. The ECB tried to sell the

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Jul 09, 2014 | Post by: Jocelyn Gilson Comments Off

Considering Shiller’s P/E for Tactical Management

Many observers are puzzled by the equity market’s continued strength. Some predict negative outcomes this year, citing the length or strength of the rally or high valuation. Yale university professor Robert Shiller – author of the book Irrational Exuberance –recently appeared in financial media citing (once again) the high level

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Jul 02, 2014 | Post by: modelcap Comments Off

Many Investors Are Still in Cash -

Bankrate.com recently published the results of their monthly Financial Security Index survey. Americans where asked where they prefer to keep the money they would not need for 10 years. Despite the long-term horizon, 25% of investors still prefer to keep the money in savings and CDs, where it earns practically nothing! 23%

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Jul 02, 2014 | Post by: modelcap Comments Off

What’s the Biggest Issue for Active Investors -

Do you think’s it’s the economy? Geopolitics? The biggest issue that active investors face is that they make decisions based on subjective opinions of the “experts” (or their own) that are influenced by the news of the day. There is no shortage of negative news – last year they were

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Jul 01, 2014 | Post by: Jocelyn Gilson Comments Off

The Key to Successful Tactical Management

As opposed to buy-and-hold, tactical management rebalances the portfolio based on expected returns and risks – attempting to avoid market downturns, but to participate in the upside. However, it is as challenging as all of active management, and simplistic methods can hardly work. In order to maximize its chances to success, tactical

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Jul 01, 2014 | Post by: Jocelyn Gilson Comments Off

Tactical Managment vs. Strategic Asset Allocation -

Have your portfolios been keeping up with the rally in U.S. equities? How many times have you heard “you invest for the long run, you should not buy (or sell) now”? This approach is typically practiced by advisors who use strategic asset allocation. But, you suspect that the long run consists

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Jun 09, 2014 | Post by: modelcap Comments Off

Equity Market Rally In 2014 Is Just Starting

By Roman Chuyan, CFA July 23, 2014 Here we are in the middle of 2014, and many investors and advisors are reassessing their asset allocation for the rest of this year. Investors and managers who actively manage their asset allocation to position it according to near-term risk-return expectations, may find

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Jun 04, 2014 | Post by: modelcap Comments Off

Tactical bond strategies for low-rate environment –

By Roman Chuyan June 4, 2014 This is our tactical management update on our current view on the bond market, continuing with tactical asset allocation strategies that I outlined in our year-end Asset Allocation piece, and adding new strategies for the current low-rate environment. Long-term interest rates continued to fall

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Jun 01, 2014 | Post by: modelcap Comments Off

Model Capital is now available on Schwab

Model Capital Management LLC is approved as a manager on Charles Schwab’s Schwab Advisor Center™. All Schwab investment advisors who use the Advisor Center now have access to our tactical asset allocation models/strategies. Find us on the Advisor Center by clicking on All Manager List, then browsing to “Model Capital Management

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