According to data from Morningstar, the average expense ratio among passively managed index funds and exchange traded funds (ETFs) is 0.69%, and for actively managed funds it is 1.21%. And while this level of expense may seem reasonable to some, we believe it is a complete and total rip-off that can cost the average investor hundreds of thousands of dollars over the course of an investment lifetime. Blue Harbinger’s passive “Lazy Person” ETF strategy and active “Blue Harbinger 15” strategy will show you how to be a better, smarter and more profitable investor. This week’s Blue Harbinger Weekly reviews specific holdings within each of these strategies.
Year-End Rebalancing and Great Opportunities
Time to sell your winners and buy the losers? Some contrarians might think so. With 2016 right around the corner, it can be helpful to see what has and has not been working, and why. For example, Caterpillar has been a persistent loser (as we wrote about here), and Nike and McDonald’s have been big winners this year. This week we review the Dow Jones stocks we do own (and why), and our view on when it’s prudent to rebalance.
Terrific Stock-Specific Opportunities, Despite Broader Market Red Lights
With all of last week's macro-volatility, and the Fed set to begin raising rates this upcoming week, it's a great time to point out two important things: (1) Diversified long-term investors don’t need to make a single change to their investment strategy, and (2) Many terrific stock-specific investment opportunities remain for those willing to do their homework. For example, this week’s Weekly highlights several specific stocks related to cloud-based human capital management that are set to climb from an accelerating secular trend.
Market Cycles and Investor Blindness
This week’s Blue Harbinger Weekly focuses on broad market cycles, and how quickly investors forget about them and become blind to their dangers and opportunities. We consider the staggered market cycles of the US versus international economies, and the impacts on specific industries such as railroad companies and heavy machinery manufacturers.