Wealth Management

When we manage client accounts, we typically devise asset allocation policies (or portfolio models) that specify the amount (in percentage terms) that we will try to hold of each investment option in the account. As time goes by, the investment… Read More >

In its first issue of the year 2014, Barron’s published a cover story on Dimensional Fund Advisors (DFA), an investment management firm whose funds Porter, White & Company has frequently recommended. DFA funds are not generally available to the public… Read More >

In this first video, Goodloe talks about the genesis of our investment management business and the value of advice we bring to our wealth management clients. Value of Advice for Wealth Management Clients from Porter, White & Company on Vimeo…. Read More >

I. Introduction In an investment commentary published a year ago, we examined the cost of locking in a fixed stream of payments and found that the price of guaranteed returns had increased. Unfortunately, real interest rates have continued to fall… Read More >

The most important decision made by an investor in marketable securities is how to allocate investment capital among debt and equity. To help our investment advisory clients make the debt-equity decision, we present information in thought-provoking formats, such as the… Read More >

In our investment commentary entitled, “Can Investors Have Their Cake and Eat It Too?,” written two years ago, we examined whether the following promise was too good to be true: “GUARANTEED return of your investment PLUS a return linked to… Read More >

As of February 2012, the low yield environment of the bond markets has lowered the expected return of fixed income securities as an asset class. Lower expected return for the fixed income asset class has necessitated a reassessment of whether… Read More >

During the past week, the US government narrowly avoided default on its obligations, the financial markets declined precipitously on poor economic news, Standard & Poor’s downgraded its credit rating on the US debt from AAA to AA+, and the S&P… Read More >

After falling just over 50% from its peak in October 2007, the S&P 500 has posted strong gains since the market low in March 2009. While the market meltdown in late 2008 and early 2009 is now becoming a not-so-recent… Read More >

In this commentary, we explore the underlying mechanics of what goes on inside a bond fund and how its price changes over time if interest rates experience a one-time increase. I. Introduction Interest rates are at historic lows, and while… Read More >

The white paper, “Creating Equity Portfolios,” poses the question “Why do we recommend certain equity allocations?” The paper reviews the nuts and bolts of diversification and the factors we consider in forming equity portfolios. By considering data and research on… Read More >

Research has shown that selection of asset classes is the most important factor in determining the variation in returns of an investment portfolio across time and among portfolios.[1] This paper reviews PW&Co’s approach to selecting asset classes for inclusion in… Read More >

Having experienced a period of falling rates that have positively influenced the return on bonds, many people are worried about the prospects that interest rates will increase. We do not believe that we can profit by predicting interest rates or… Read More >

Investment expenses can be a significant drag on investment performance. Some investment expenses are easily identified, and others are hidden from view. Authoritative studies of total investment expenses are scarce. The following table presents estimates developed by William J. Bernstein,… Read More >

The government started issuing Treasury Inflation Protected Securities (TIPS) in March, 1997 to offer investors protection from unexpected increases in inflation. Since inception in March, 1997, the Barclays Capital US TIPS Index has returned 6.5% per year versus 6.2% per… Read More >