Exploring For Higher Returns
If you're like a lot of people, you've got most of your portfolio tucked into a broadly diversified core fund. That's a sensible approach. But what if the returns are not enough to meet your financial objectives?
The usual advice these days is to put off retirement -- or cut spending to the bone so you can put additional income or savings into your portfolio. That's good advice as far as it goes. But it's not very satisfying.
There's another option that should be considered. That's putting some of your assets into an "explore" portfolio. How much? That depends on your confidence in selecting the right areas to invest in, and in the skill of the person, whether it’s yourself or a manager, who will be picking the stocks. There are no guarantees, of course, but if your other choices are working longer or reducing your standard of living, an explore portfolio should at least be on the table.
Even in bad markets some stocks do well
Although the overall market has not done well so far this decade some sectors of the market have delivered solid returns. When the returns are due to factors that are ongoing and long-lasting, there is the possibility that those solid returns are not yet exhausted. Those are the areas that are worth exploring for higher returns.
Managing an explore portfolio requires significant industry expertise and a network of industry contacts to separate the winners from the losers. This is why we recommend that if you want to manage your own explore portfolio, you focus on an industry in which you have significant firsthand experience. If you want to explore in other industries, we recommend you hire the most skilled manager you can find to help you.
Through our managed account program you can access Marketocracy's mFOLIO Masters – m100 members that we have evaluated enough that we believe their model portfolio can stand alone.