Global bonds and stocks are the answers for 401k savers

Employees who contribute to their 401k and other retirement plans are missing the boat when it comes to worldwide investment diversification, says OppenheimerFunds. Its recent survey of 1,000 investors found a distinct “home market” bias among employees investing for retirement. It says employees routinely misunderstood the risks and rewards of investing overseas in international stocks and bonds. Many thought the […]

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Client Letter – Q1 2012

During the past quarter, U.S. and international stocks performed exceptionally well, with international and emerging markets doing the best (as they have during the last ten years).  Ironically, U.S. stocks have outperformed international stocks during the last one year and five year periods.  The following chart shows the 3-month, 5-year, and 10-year performance of many DFA funds (representing different asset […]

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Client Letter – Q4 2011

Any investor should be willing to admit 2011 was a pretty crazy year for the markets. We were churned through the year by a weather and nuclear disaster in Japan, a deadlock over finances in Congress that led to a downgrade of U.S. debt, and a major crisis in Europe that threatened to blow apart the European Union and end […]

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Optimism from a top market observer

As the world’s stock markets took a vicious tumble in late summer and early fall, one of the market’s most prescient observers issued a warning: don’t sell now. Burton Malkiel, economics professor at Princeton and author of “A Random Walk Down Wall Street,” wrote an editorial in the Wall Street Journal urging investors to ignore the market’s recent trends and to focus on […]

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Client Letter – Q3 2011

During the past quarter, the world-wide equity markets took a steep fall.  In contrast, our bond positions did their job and held up the “fort.”  The chart below shows the 3-month, 5-year, and 10-year performance of many DFA funds (representing different asset classes) compared to the S&P 500 Index: Market Returns for the period ending September 30, 2011  DFA Fund […]

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Client Letter – Q2 2011

As a fiduciary, we are required to utilize a due diligence process in selecting service providers, including the selection of custodians.  We are also required to periodically re-evaluate these relationships.  Sparrow Wealth Management clients have utilized Charles Schwab as your custodian for about ten years now.  During the past year, we have evaluated a number of custodians, and we have […]

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