Low Risk, Great Returns
Take a look at the following chart*, which was published in a book I am reading called “Adaptive Markets” by Andrew Lo. Based on the performance you see here, if you were to invest your entire life savings into one…
Lost Client, Lost Upside
Our firm recently lost a client. When we lose a client, which happens from time to time, we always reach out to that client to thank them for their business and ask why they left. This particular client had a…
The Worst Asset Class in 2017
Most people know that stock markets across the globe had a great year in 2017. Few people take the time to review what didn’t work in the past year. This chart from Deutsche Bank helps us visualize the returns (in…
Against The Gods
I recently picked up “Against The Gods – A Remarkable Story of Risk” by Peter L. Bernstein because it was on a number of must-read lists for investing nerds. The book is essentially history book on the topic of risk….
Investing Trends: Emerging Markets
If you are a US based investor, you can be forgiven for ignoring Emerging Market stocks over the last few years. Investors tend to gravitate towards good returns and Emerging Market returns have been anything but good in recent years. …
What Is The Point Of Bonds?
I think investors often miss the point of bonds in a portfolio. And not just individual investors – pension funds, financial advisors and portfolio managers are guilty as well. In my opinion, the role of bonds in a diversified portfolio…
Investing Backwards
Investing backwards is easy. Here is how it works: you take a look at a stock/mutual fund/asset class/allocation that has performed very well over the last few years and that’s where you invest. Done. Super easy. The problem is that…
Diamonds
I often meet people with investment accounts at Edward Jones, Merrill Lynch, Morgan Stanley, etc. When they learn that I am an Independent Financial Advisor the next question is usually this: “how are you different from my guy at insert…
Investing Trends – Floating Rate Bonds
Since the FED interest rate hike in December of 2016, floating rate bonds have caught the attention of bond investors. Floating rate funds are being sold to income investors as a way to make money in bonds during a raising…
Why I Don’t Watch CNBC Anymore
It was mid February 2016 and the S&P 500 was down almost 15%* from its recent high. The market action on this particular day was especially bad so I did what I always do – I turned on CNBC. As…