Thinking About Losing – Part 2
-By Charles Brown, M.Brown Financial Advisors -June 29, 2023 Dollarizing Losses Daniel Kahneman and Amos Tversky, pioneers of behavioral psychology, studied how losses affect individuals. Their studies concluded that the pain of losing money is about twice as much as…
Thinking About Losing
-By Charles Brown, M.Brown Financial Advisors -May 4, 2023 No one likes to think about losing. If you play a sport, you probably never think about losing the game before the game starts. Investing is different. We need to understand…
The Optimism Bias
– By Charles Brown, M. Brown Financial Advisors, November 30, 2020 I am currently reading a book titled “The Optimism Bias: A Tour of the Irrationally Positive Brain” by Tali Sharot (see below for Amazon link). The Optimism Bias is simply:…
Three Key Investing Charts for 2020
By Charles Brown, January 6, 2020 As the 2020 investing year gets going, I thought I would post a few of the charts* that I think are important for investors this year. This first chart is of the performance of…
Who Wants To Lose Money?
By Charles Brown, M. Brown Financial Advisors If you are an investor, the chart above should be on your radar. It’s a chart representing the dollar value of negative yielding debt globally. The chart, as of June 20th 2019, just…
Investing Trends – Commodities
If you follow the financial markets, you have most likely seen the “I” word recently – inflation. Although benign since 2008, inflation is on the “risk radar” of many asset managers heading into 2018. Some asset managers believe that higher…
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…
What’s Your Carry?
Most people are unfamiliar with the investing term “carry”. Carry is simply the cost or benefit of owning an asset. Bonds have a “positive carry” since they give you periodic coupon payments. All things being equal, bonds pay you to…
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…