The market fools experts yet again (an interest rate story)
In the last year, interest rates have fallen dramatically. At the end of the 3rd quarter in 2018, the yield on a 10-year note from the U.S. Government was 3.05% and today it stands at 1.68%. This decline in interest rates is unusual, but not unprecedented. Given the vast resources of the world’s largest money […]
The least prepared in decades
A recent headline in the Wall Street Journal declared, “A Generation of Americans Is Entering Old Age the Least Prepared in Decades.” The article starts out by stating, “Americans are reaching retirement age in worse financial shape than the prior generation, for the first time since Harry Truman was president.” It is a familiar story […]
Why Perspective Matters
I often say that one of our primary roles as an advisor is to provide context and perspective for clients, allowing us to collaboratively make better decisions. Behavioral economists have identified narrow framing as the tendency for investors to make decisions without considering the big picture or long-term effect on their portfolio. This behavior can […]
Do You Suffer from “Narrow Framing”?
Oftentimes, many investors get caught up in short-term results rather than looking at the big picture. This is known to behavioral economists as “narrow framing,” or “a tendency to see investments without considering the context of the overall portfolio.” Unfortunately, this idea can lead to many missed opportunities for investors. Narrow framing can cause investors to either […]
Brexit Votes and Market Outcomes
Believe me, we get it. After yesterday’s Brexit referendum and its startling outcome, it’s hard to view today’s news without feeling your stomach twist over what in the world is going on. Whenever the markets scream bloody murder, your instincts deliver a sense of unrest ranging from discontent to desperation. Financial author Larry Swedroe has […]
How to Get the Right Financial Adviser
Selecting the right financial adviser is crucial. You want someone who is trustworthy and who will act in your best interest, but they are not as easy to find as you would think. A recent article in the Wall Street Journal provides tips on finding an adviser who is the right match for you. The author of […]
Tempted to Trust Your Gut? – Another Reason to Commit to a Disciplined Strategy
“The three worst words of stock market advice: Trust Your Gut.” That was the headline of a recent article by Jason Zweig in The Wall Street Journal, reporting on a new academic study. Dr. Robert Shiller of Yale, who won the Nobel Prize in economics in 2013, has been surveying investors about their expectations since […]
When Stock Pickers Stop Picking Stocks
Many investors pay high fees for actively managed funds. Traditionally with these funds, an investor pays the “manager” of the fund to select investments that they believe will outperform the market. This, in turn, should give the investor a higher return than the market produces. Although many expect a higher rate of return, evidence shows […]
Clearing Up Confusion About New Social Security Rules
As you may have heard, there have been some drastic changes to Social Security regarding the file-and-suspend and restricted application methods of filing. These changes were announced back in October 2015 when Congress passed their 2016 budget. (You can read more about the specifics of these changes in this article.) As expected, there has been […]
The Devil’s Financial Dictionary
There is an endless amount of terminology that surrounds the finance and investment industries. It can certainly be confusing to the average investor, and may be responsible for some uncertainty when it comes to how to invest and which advisor to trust. The Devil’s Financial Dictionary is a book that has recently been released by […]