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Asset Allocation Review

The underlying principle of asset allocation is to diversify your investment portfolio among several different asset classes in an effort to reduce the risk and volatility of your overall portfolio and potentially improve your overall returns. Even if you’ve already constructed a plan, changes to your investment profile such as time horizon or risk tolerance may require adjustments to your asset allocation plan.

The plan you established last year may not be appropriate this year as a result of economic fluctuations or changes in your personal or financial circumstances. Your allocation to international investments might not make as much sense this year with slowing foreign growth and heightened terrorist concerns.

To start the review run through a quick exercise of determining your exact current asset allocation, on a percentage basis; add up your exposure to stocks, bonds, cash or otherwise. Then simply ask yourself: What type of market am I allocated for? Obviously, a bull market portfolio would have a high allocation to stocks or alternatives, whereas a bear market portfolio would have outsize allocations to high-quality bonds and cash. In a rising interest rate environment be careful assuming the bonds are risk adverse- the opposite could hold true.

Heading into the 7th year of market growth an important consideration is having adequate cash reserves, and possibly a downsized risk appetite. We all know the market will decline- after 7 years that likelihood increases. Adequate cash alleviates the need to sell assets during a downturn.

Many investors allocate most of their time to selection of assets. Designing your personal asset allocation and investment strategy is the primary component to your success; investment selection should be secondary to asset allocation.

Questions on your asset allocations? Give us a call!

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Credit Unions vs Big Banks

By Lineweaver Financial Group
July 26, 2019 Category: Credit Unions, Pse, Big Banks, Savings, Checking, Banking

Often times, credit unions grow up around a community, or a place of business, and the PSE credit union is no exception. The PSE Credit Union has been around since 1955, and originally started as the Parma City Employees Credit Union, and now, anyone can become a member. Many people understand the difference between credit unions and big banks, but what is it specifically that sets them apart? At the PSE Credit Union, its that they are a not-for-profit business, as opposed to the big banks, which are for profit. Instead of having to appease their shareholders, their goal is to serve their members. In their eyes, whats best for a banks shareholders isnt always best for the customers as a credit union, whats best for theircustomers their primary goal. This can often translate to better service and member satisfaction. For example, according to the most recent annual American Customer Satisfaction Index, credit unions scored an average of 86% for customer satisfaction, while the average

Economic Commentary: Q3 2019

By Lineweaver Financial Group
July 02, 2019 Category: Economic Commentary, Review, Q3

Investment Directions - Staycation or Vacation? Sell in May and go away is an old maxim for investors. Evidence is mixed on its validity, but given this years rally, the temptation now is understandable. Our take: consider taking some profits and rotating into exposures that offer more resilience if volatility returns. Think of it as the investor version of a staycation and catch up on chores. With that in mind, our take on the major investor themes for the weeks ahead: U.S. Equities: Reverting to Technology We remain overweight U.S. equities, and one of our favored sectors is technology. Even with strong performance this year, we believe the sector remains appealing. Technology firms tend to have strong balance sheets and enjoy support from longer-term trends, attractive qualities in a late economic cycle. Furthermore, tech stocks have historically fared well through various yield curve regimes. Developed Markets: Europe Poised for Revival? Investors in Europe have had little reason

Healthwatch: Tips for Lowering Your Risk of Dementia

By Lineweaver Financial Group
July 02, 2019 Category: Dementia, Healthwatch, Health, Q3

Theres no effective treatment for dementia, which affects 50 million people worldwide, but the World Health Organization (WHO) says theres much that can be done to delay or slow the onset and progression of the disease. In May, WHO issued the following recommendations to reduce the risk of dementia globally, and combat cognitive decline: Regular physical exercise Dont use tobacco Drink less alcohol Maintain a healthy blood pressure Eat a healthy diet, particularly Mediterranean foods Avoid dietary supplements such as Vitamins B and E WHO said there are 10 million new cases of dementia every year, and this figure is set to triple by 2050. The disease is a major cause of disability and dependency among older people and can devastate the lives of affected individuals, their careers and families, the organization said. Although the report stressed that social participation and social support are strongly connected to good health and individual well-being, it said there was insufficient

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