 Headlines
- Three Officers Dead in Baton Rouge Shooting
- Police Departments Shift Tactics After Shootings to Protect Officers
- French Police Detain Eighth Person in Investigation into Bastille Day Attack
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The 10 Cornerstone Principles to Asset Allocation
Principles can be described as the beginning, the foundation, the source, or the essence upon which things build and expand. They are important in  investing because they bring structure to your financial plan. There are 10 cornerstone principles of asset allocation and each one plays a vital role in establishing and maintaining a truly optimal asset allocation. By practicing these principles, you can build an appropriate portfolio for your situation. Keep in mind that asset allocation does not ensure a profit or protect against a loss.
Cornerstone Principle 1: Market Efficiency
Market efficiency is the golden principle of all asset allocation cornerstone principles. Without some degree of market efficiency, we would not employ asset allocation and would probably focus instead on security selection. Fortunately, our financial markets are highly efficient and are becoming even more so as information technology gets better with time.
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The Markets
... was not in the Department of Labor (DOL)'s June Employment Report Summary, but it may as well have been. A positive jobs report revved  investor optimism and sent U.S. stock markets sprinting higher last week.
Job growth was strong in June with 287,000 new jobs created. That helped soothe worries raised by a less than stellar May jobs report. The Wall Street Journal wrote:
"A powerful rebound in hiring last month eased fears about an economic downturn as the U.S. expansion enters its eighth year, putting the nation on solid footing to absorb global shocks and market turbulence."
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By the Numbers
Notes: S&P 500, Gold, DJ-UBS Commodity Index returns exclude reinvested dividends (gold does not pay a dividend) and the three-, five-, and 10-year returns are annualized ... more important disclosure mentions found here. (We urge you to read the entire disclosure statement.)
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