The Full Motley: 3Q 2013

I have to admit; quarterly reinvesting may not be the most productive method of account management. Unless you're one of those obsessive types.  So, count me in!  Regardless, it is that time of quarter again (almost the mid-point, actually) where I have historically re-balanced my portfolio.  Not surprising, there was not much movement.  The overall balance in my stock-heavy portfolio had increased with the market, and I was surprised that last quarter's lagging fund was not lagging after the most recent three months.  In fact, it was the actively-managed PRIMECAP Fund that was lagging of the three biggest stock funds.  Only the Explorer Fund and the Total Stock Market Index Fund were up beyond their target allocation, which does not mean the other funds had lost money; it only means that those two fund earned at a greater percentage than the other funds.

Here is the basic breakdown:

Fund	Current	Target	Change
Explorer	27.4%	25%	-2%
High-Yield	4.5%	5%	0.5%
PRIMECAP	24.5%	25%	0.5%
Total Bond	7.3%	8%	0.7%
Total Int'l	9.5%	10%	0.5%
Total Stock	26.2%	25%	-1.2%

Regardless, it is a great time to be in the market.  It is also a fun time to be a financial blogger.  If only I had more time to comment on all the stories I have read in the recent past.  The most intriguing story was about a survey released by McDonalds indicating how employees could easily start saving for retirement.  Two elements that captured headlines; the spreadsheet required a second job and there was no expense for gasoline.  Also, the numbers used in their example were severely under-stated to current times.

Since that article, there have been several others, largely based around the protests of minimum wage earners and their sporadic protests.  The most well-organized one has been in NYC.  The cause is noble, but the dream is fantasy.  The sad truth is that America lost its ability to offer a modest living within its national minimum wage when the world's economy became globalized.  The simple truth is that Americans are competing for jobs on a worldwide scale now.  If America takes it upon itself to modify its national minimum wage, then it loses its place in the global economy because its assets and liabilities will be higher.

The paradigm has shifted.