Maintaining Equity Exposure in the Current Interest Rate Environment
In today’s interest rate environment, some investors are tempted to lock in “guaranteed” returns through fixed income instruments yielding 5% or more. However, investing solely in fixed income would be a mistake for most long-term investors. Discussed below are a few reasons why that is the case: Higher Long-Term Returns Over the past 90 years, […]
Capital Market Activity (September, 2022)
August saw significant up and downs in stock returns. In the first half of the month a global stock portfolio was up about 3%, then dropped 6% to a loss of almost 3% after Fed Chairman Powell publicly reaffirm its commitment to increasing interest rates until inflation is in check. Domestic large cap equities were […]
Capital Market Activity (August, 2022)
After a sharp decline in the first six months of this year, stocks were up nicely in July; a global equity portfolio was up just over 6%. These results were a welcome respite from what we have experienced thus far this year. Markets look to the future. Let us hope they signal positive expectations for […]
How Accurate Are Market Predictions?
If you ask 100 different financial “experts” about future stock market performance, you’ll get 100 different opinions. Most will be wrong, but some, by sheer luck, will be correct (luck is often confused for skill). Investors often rely on expert opinions on what to do with their investments, especially in volatile markets like we are […]
Market commentary: Q2 2021
Stock Markets: Stocks provided positive results over the most recent twelve-month period. While all markets have done well, especially stocks in domestic markets, the markets that lead and lag vary across the various periods. While not shown in this chart, a globally diversified stock portfolio earned over 12% over the three-year period ending June 30th, […]
SPACs, NFTs, and other jungle creatures
“The American marketplace is an economic jungle. As in all jungles, you easily can be destroyed if you don’t know the rules of survival. … But you also can come through in fine shape and you can even flourish in the jungle—if you learn the rules, adapt them for your own use, and heed them.” […]
Investment lessons found in the year of the coronavirus
Investors nerves were tried throughout 2020, yet those investors who avoided behavioral mistakes and didn’t let their emotions get the best of them were rewarded handsomely. The year was full of lessons, but some highlights were: Market results are unpredictable- Missing the best market day in March would have cost you 10%. That “lost” […]
Historical stock market volatility around elections
With the general election approaching, many investors are worried about heightened volatility in the stock market. We have had several people reach out with three types of concerns: concern around an election without a clear winner (or a candidate not admitting defeat), concern around an election result different than their preference, and concern around general […]
Eight best/worst investment strategies during the coronavirus
The utility of living consists not in the length of days, but in the use of time. — Michel de Montaigne For better or worse, many of us have had more time than usual to engage in new or different pursuits in 2020. Even if you’re as busy as ever, you may well be revisiting […]
It doesn’t take a genius to be a good investor
It doesn’t take a genius to be a good investor And geniuses often aren’t. This summer marked the 300th anniversary of the South Sea Bubble when Britain’s South Sea Company went from £128/share in January of 1720 to over £1,000 by August, and then crashed to £124 by the end of the year. The most […]
