CKW Financial Group Blog

 

Active vs Passive is part of asset allocation

Our industry sets standards of due diligence, research, analysis, education, and other criteria to manage parts of a portfolio.  Do the people and organizations picking the parts add value to the whole?  Is it manager selection or asset allocation? Every active or... read more

Parts will be parts.

When the parts don’t fit, you get lousy performance.  Porsche magazine, with the latest and greatest new parts, get people enthusiastic about making changes for better performance.  Porsche is the best at putting together amazing cars from their parts bin. We believe... read more

Dear Santa

Dear Santa,   All we want for Christmas is benchmark understanding.  Educating clients that managers need higher returns than the benchmark; firing managers because of drift and looking different from the benchmark; and having too many asset classes is not the... read more

Oops – Forgot Rate of Return!

A Nobel Prize was awarded to the theory that the best Rate of Return for an increment of risk is a balanced portfolio of stocks and bonds. An investor is only an owner (stocks) and/or a lender (bonds). An illiquid, less diversified, and more expensive alternative... read more

Future of Asset Allocation

If Asset Allocation has a future, the question is: What assets are in the AA decision?  CKW believes the combination of stocks and bonds provide good, hard to beat, risk-adjusted returns over time.  Buying stocks makes the buyer an owner and buying bonds makes the... read more

Focus on Earnings

We believe it is clear that central bank rates will rise.  Either all the money central banks printed, purchased, and manufactured went into the economy or it did not.  Like most things, it is probably somewhere in between.  Did the money inflate asset prices or just... read more

Gatekeepers – Don’t forget 60/40

As financial professionals we are all gatekeepers.  What eventually gets through each gate depends on each gatekeeper.  When you were taught the 8P’s of manager due diligence (some of you by me) for your CIMA, the P’s are not equal for all gates.  We all need to do a... read more

Use Passive Actively II

Passive investments used actively, efficiently manages the big rocks first.  Putting smaller rocks first takes up resources (more space).  Putting the big rocks first, then pouring the small rocks over the big rocks to fill the spaces between the big rocks creates an... read more

Use Passive Actively

The Rate of Return of Asset Allocators, Strategists, and Portfolio Managers include both passive and active. One way to look at this is passive is the benchmark, and active is what is different from the benchmark. Technology will continue to increase productivity of... read more

65% Stock/35% Bonds vs. Alternative Investments: Why?

65/35 has been hard to beat relative risk/reward For long term investors, a 65/35 allocation has produced no negative return since 1990 for a rolling 7 or 10 year period. With maximum gain of 14.09% (7 year) and 11.93% (10 years) Median gain of 5.66% (7 year) and 6.74... read more
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