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Archives for January 2014

When Your Portfolio Doesn’t Beat a Benchmark

Posted on 01.20.14 |

The Wall Street JournalIt’s a thorny issue all financial advisors face. What do you say to a client when their portfolio, and the investment plan you agreed on, doesn’t surpass or match a broad benchmark like the Dow or S&P 500? Steve Blumenthal, CEO of CMG Capital Management Group, writes in the Wall Street Journal Wealth Adviser (subscription required) about this delicate topic, and how to use the opportunity to educate clients about long-term investment strategy. Writes Steve:

I was recently on the phone with an adviser who has been in the business forever, and he was scratching his head because the S&P Stephen Blumenthal, CEO< CMG Capital Management Groupwas up 20% and his clients were calling him to complain because they weren’t up 20% as well.

As human beings we’re competitive and we want what’s best. So when clients see the S&P outperforming their portfolio they want to know what they can change to keep up. But as advisers we have to explain to them that the S&P is not a good benchmark for a broadly diversified portfolio that combines a lot of different risks.

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Categories: Practice Management Tags: CMG Capital Management Group, Steve Blumenthal

Is the 60-40 Asset Allocation Model Doomed?

Posted on 01.19.14 |

MarketWatch logoSteve Blumenthal was interviewed by MarketWatch columnist Charles Passy for the story Is investors’ favorite strategy doomed to fail.  Why the 60/40 asset allocation model may no longer work.

This is a favorite topic of Steve’s. He’s a proponent of what he calls Enhanced Modern Portfolio Theory (EMPT). EMPT is an alternative to the traditional 60/40 stock/bond alocation model.  Today, advisors and investors can access a broad range of investment options to build diversified portfolios. See Financial Advisor: The New Modern Portfolio Theory.

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Categories: Portfolio Construction, Tactical Investment Strategies Tags: Enhanced Modern Portfolio Theory, MarketWatch, Steve Blumenthal

Blumenthal on Tactical Investment Strategies

Posted on 01.14.14 |

theStreet logoSteve Blumenthal stopped by theStreet to talk to Gregg Greenberg about tactical investment strategies as an alternative to the traditional 60/40 equity/bond portfolio. CMG Capital Management Group favors a new portfolio contruction based on three buckets: 33% equity, 33% fixed income, 34% tactical/alternatives.

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Categories: Portfolio Construction, Tactical Investment Strategies Tags: theStreet

What is Enhanced Modern Portfolio Theory?

Posted on 01.10.14 |

It’s time for Enhanced Modern Portfolio Theory

Stephen Blumenthal, CEO< CMG Capital Management GroupIt’s not that Modern Portfolio Theory (MPT) is wrong, rather that it’s time to question whether 60/40 remains the best way to optimize the risk-reward relationship. This asset mix is simply too narrow in the current low-dividend-yield, low-inflation, low-interest-rate environment.

Fortunately, over the past 15 years a host of new, liquid investment solutions have become available, and advisors have access to investment options that, until recently, were the exclusive province of institutions. These investment vehicles can help you build more diverse, resilient portfolios designed to enhance return and reduce overall portfolio risk.

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Categories: Portfolio Construction

Steve Talks Emerging Markets With Barron’s

Posted on 01.07.14 |

Barron'sShuli Ren, the Emerging Markets reporter for Barron’s, posed the question “How Much Weight Should Emerging Markets Have In Your Portfolio?” She spoke with Steve Blumenthal about exposure in Emerging Markets and the CMG Global Equity Strategy. The Strategy, structured with Absolute Return Partners, offers a new mutual fund CMG Global Equity (GEFAX) that uses quantitative scoring methods. This method screens companies that can generate higher Sharpe ratios

The CMG Global Equity Strategy portfolio consists of 50 equally-weighted stocks (2% each), selected at the end of May each year when companies release their annual reports. This May, from a universe of 35,000 publicly traded companies across 150 countries, about 3,600 companies met market liquidity requirements.

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Categories: Equities, Global Economy, Portfolio Construction Tags: Absolute Return Partners, CMG Global Equity Strategy, emerging markets

Short Yen Top ETF Pick for Blumenthal in 2014

Posted on 01.03.14 |

investors Investor's Business DailyStephen Blumenthal picked YCS (Pro Shares Ultra Short Yen) as the ETF that has the best prospect to outperform in 2014.  See the full story in Investor’s Business Daily: Best ETFs For 2014: 9 Picks From 9 Strategists.

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Categories: Monetary Policy, Tactical Investment Strategies Tags: CMG Capital Management Group, Investor's Business Daily, Steve Blumenthal, YCS

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