Dynamic Portfolio Construction in the Context of Comprehensive Wealth Management
- 1. Dynamic Portfolio Construction in the Context of Comprehensive Wealth Management David John Marotta, CFP®, AIF® Marotta Wealth Management www.eMarotta.com
- 2. Where in the World Should You Invest?
- 3. Comprehensive Wealth Management Life Planning Investment Management Financial Planning Wealth Management
- 4. Where in the World Should You Invest?
- 5. Inflation
- 6. Where in the World Should You Invest?
- 7. Where in the World Should You Invest?
- 8. Where in the World Should You Invest?
- 9. The Importance of Asset Allocation Diversification Improves Returns Return Year 1 Year 2 Total A 0% 30% 30% B 30% 0% 30% A & B 15% 15% 32.25%
- 10. Rebalance
- 11. The Importance of Asset Allocation Correlation & Risk - Return
- 13. Where in the World Should You Invest?
- 14. Developing An Optimum Static Asset Allocation
- 15. Data 1927-2010
- 16. Data 1927-2010
- 25. Developing A Dynamic Asset Allocation
- 26. Expense ratio of 0.19%
- 27. P/E Ratio: Price / Earnings Price: Market Value per Share Earnings: Earnings per Share (EPS) Earnings: Trailing 4 quarters (trailing P/E) Projected 4 quarters (projected or forward P/E) Last 2 quarters and estimates for the next 2 quarters P/E Ratio: $10 Price: $10 / Share Earnings: $1 per Share Earnings: Trailing 40 quarters (10-year trailing P/E)
- 28. 12-Month Forward P/E Ratio Does indicate expected return Always better to be invested Ratio of P/E Ratios: Russell 2000 (Small Cap) 12-Month Forward P/E Ratio = 1.033 (mean) Russell 1000 (Large Cap) 12-Month Forward P/E Ratio 0.122 (Std Dev) 0.911 1.033 1.155 -1 Std Dev Mean +1 Std Dev Small is cheap Average Large is cheap
- 29. Russell 2000 (Small Cap) 12-Month Forward P/E Ratio = 1.033 (mean) Russell 1000 (Large Cap) 12-Month Forward P/E Ratio 0.122 (Std Dev)
- 30. R2000 PE / R1000 PE 0.911 1.033 1.155 -1 Std Dev Mean +1 Std Dev Small is cheap Average Large is cheap R1000 Return – R2000 Return Difference in Returns Outperformance of Large
- 32. Expense ratio of 0.17%
- 37. Value and Growth
- 38. Russell 1000 Growth 12-Month Forward Ratio = 1.459 (mean) Russell 1000 Value 12-Month Forward P/E Ratio 0.264 (Std Dev)
- 44. Dynamic Asset Allocation May boost returns even more than tilting small and value Can be adjusted quarterly or annually Should not increase transaction costs Can be implemented using 12-Month Forward P/E ratios
- 45. United States Where in the World Should You Invest?
- 46. United States Where in the World Should You Invest? Affluence Automation Asia
- 48. Where in the World Should You Invest?
- 49. Where in the World Should You Invest? World Equity Markets
- 50. Where in the World Should You Invest?
- 52. Where in the World Should You Invest? Index of Economic Freedom
- 53. Where in the World Should You Invest? Index of Economic Freedom
- 54. Where in the World Should You Invest?
- 55. Where in the World Should You Invest?
- 56. Where in the World Should You Invest?
- 57. Where in the World Should You Invest?
- 58. Where in the World Should You Invest?
- 59. Where in the World Should You Invest?
- 60. Carlos Slim Helu
- 61. Where in the World Should You Invest? Developed and Emerging Markets
- 62. Emerging Markets Where in the World Should You Invest?
- 63. Emerging Markets Where in the World Should You Invest?
- 64. Emerging Markets Where in the World Should You Invest?
- 65. North Korea at night
- 67. Santiago, Chile
- 68. Resource Stocks
- 69. Where in the World Should You Invest?
- 70. Where in the World Should You Invest?
- 71. Where in the World Should You Invest?
- 72. Safe Spending Getting Your Retirement Back on Track
- 73. Dynamic Portfolio Construction in the Context of Comprehensive Wealth Management David John Marotta, CFP®, AIF® Marotta Wealth Management www.eMarotta.com