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Demystifying Investment Jargon: What Is Correlation?

Created on Wednesday, 27 June 2018. Posted in Content/our blog

... +1.0. It quantifies whether—and by how much—two holdings have behaved differently or alike in various markets. Correlation matters because if we can identify holdings with weak or no expected correlation ...

A Focus on Fixed-Income

Created on Thursday, 24 May 2018. Posted in Content/our blog

... or bond funds can smooth out that bumpy ride and serve as a safety net against market risks. They can also contribute modestly to a portfolio’s overall expected returns, though that is not their primary ...

Eight Tips for Navigating Market Downturns

Created on Monday, 02 April 2018. Posted in Content/our blog

The first quarter of 2018 has delivered a clear reminder that the law of gravity remains in force and markets can go up as well as down. Intellectually, experienced investors know a certain amount of volatility ...

Monthly Newsletters

Created on Friday, 02 March 2018. Posted in Content/main

Sign Up NowFor Email Marketing you can trust.  ...

Is it Time to Rebalance Your Portfolio?

Created on Thursday, 01 March 2018. Posted in Content/our blog

... and so on. Assigning these weights is called asset allocation. Then time passes. Because markets don't move in tandem, your investments stray from the original allocations. Even if you've done nothing, ...

ABCs of Behavioral Biases: The Last Word

Created on Thursday, 28 December 2017. Posted in Content/our blog

... past your System 1 thinking into more deliberate decision-making for your long-term goals. (On the flip side, financial providers who are themselves fixated on picking hot stocks or timing the market on ...

ABCs of Behavioral Biases: O to T

Created on Thursday, 28 December 2017. Posted in Content/our blog

... as greed, confirmation bias and familiarity bias), overconfidence fools us into thinking we can consistently beat the market by being smarter or luckier than average. In reality, it's best to be brutally ...

ABCs of Behavioral Biases: H to O

Created on Tuesday, 28 November 2017. Posted in Content/our blog

... of market risks and rewards. Hindsight bias is undesirable because it means you're assessing your decisions based on the outcome, not whether the process was sound or not. If a high-risk investment happens ...

ABCs of Behavioral Biases: F to H

Created on Tuesday, 28 November 2017. Posted in Content/our blog

... do more than score isolated victories in the market; you've got to win the war. This requires strategic planning and unified portfolio management, with individual holdings considered within the greater ...

ABCs of Behavioral Biases: A to F

Created on Thursday, 26 October 2017. Posted in Content/our blog

... – such as an investment is a good/bad idea, or a market is about to tank or soar – we want to keep believing it. To remain convinced, we'll tune out news that contradicts our beliefs and tune into that ...

Market Correction

Created on Wednesday, 20 September 2017. Posted in Content/our blog

... Buffett's ability to crystallize investing wisdom is remarkable. His most recent letter, covering 2016, was no exception, including this powerful insight about market downturns: "During such scary ...

Building a Healthy Relationship with Investment Risk

Created on Tuesday, 15 August 2017. Posted in Content/our blog

... it means sacrificing potential rewards. For example, world events can have a real impact on your personal and financial well-being. But the markets tend to price in unfolding news far more quickly than ...

Evidence-Based Investors Approach Investing Differently

Created on Monday, 31 July 2017. Posted in Content/our blog

... investors try to beat the market through stock-picking and market-timing. By contrast, evidence-based investors participate in the market to earn expected long-term returns according to time-tested academic ...

Investing Resolutions for 2017

Created on Tuesday, 13 December 2016. Posted in Content/our blog

... to overeat, you may find that the scale has tipped in an unhealthy fashion. The same is true with your portfolio. Markets fluctuate all the time and that’s why it’s so important to evaluate your portfolio ...

The Importance of Rebalancing

Created on Friday, 11 November 2016. Posted in Content/our blog

... to align with your targeted allocation. Markets move up and down, asset classes perform differently over time and particular investments go in and out of favor. The geo-political landscape can also strongly ...

Cashing Out Is Not a Cash Cow

Created on Thursday, 13 October 2016. Posted in Content/our blog

... and 11 percent in CDs or money market accounts. But while some people view cash as king, there are several reasons why it may not be as desirable for long-term investors. For starters, unlike the 1980s ...

With Investing, the Best Recipe is to Put Politics Aside

Created on Friday, 09 September 2016. Posted in Content/our blog

Amid the election year hoopla, pundits are already theorizing about the impact the candidates will have on the stock market and broader economy. As tempting as it can be to get caught up in this rhetoric, ...

Maximize Your Returns by Minimizing Your Taxes

Created on Thursday, 17 March 2016. Posted in Content/our blog

... experience more moderate market returns over the next few years. Every dollar counts—and that's true whether you have a taxable investment account or a tax-deferred account. Eventually, Uncle Sam will ...

Your Portfolio’s Secret Weapon

Created on Thursday, 18 February 2016. Posted in Content/our blog

The stock market hasn't been a happy place so far in 2016. But for long-term investors, the real risk right now is losing sight of the big picture and making counter-productive short-term decisions. So ...

Our 2016 Prediction: Market Predictions Will Err

Created on Tuesday, 19 January 2016. Posted in Content/our blog

The beginning of a new year wouldn't be complete without a chorus of financial experts making predictions about the stock market. But unless 2016 is very different from years past, the experts will be ...

Turning Investment Losses Into Gains

Created on Friday, 11 December 2015. Posted in Content/our blog

Even in a bull market, certain investments within a diversified portfolio are likely to post losses. The good news, though, is that these losses can be put to good use through a process known as tax-loss ...

Bringing the Evidence Home

Created on Tuesday, 20 October 2015. Posted in Content/our blog

... the key take-home messages from each installment: You, the Market and the Prices You Pay. Understanding group intelligence and its effect on efficient market pricing is a first step toward more consistently ...

Don’t Sweat The Stock Market’s Volatility

Created on Friday, 04 September 2015. Posted in Content/our blog

The stock market has taken investors on a rollercoaster ride over the past few weeks, jangling plenty of nerves in the process. In times like these, looking at some historical perspective can go a long ...

Behavioral Biases: What Makes Your Brain Trick?

Created on Monday, 17 August 2015. Posted in Content/our blog

... biases that arise from our wiring, and how they can sabotage even the best-laid investment plans. Behavioral Bias #1: Herd Mentality Herd mentality is what happens to you when you see a market movement ...

The Human Factor in Evidence-Based Investing

Created on Wednesday, 08 July 2015. Posted in Content/our blog

Over the past several months, our blog series on evidence-based investing has explored the ways we can use stock and bond market factors to help drive an effective investment strategy. We turn now to ...

What Has Evidence-Based Investing Done for Me Lately?

Created on Wednesday, 10 June 2015. Posted in Content/our blog

... ones—and why incorporating them into a portfolio can be tricky. First, a quick reminder that the three well-established stock market factors are equity, value and small-cap. For bonds, the key factors ...

Factors That Figure in Your Evidence-Based Portfolio

Created on Tuesday, 12 May 2015. Posted in Content/our blog

... fade quickly? One explanation is related to risk. Persistent premium returns often seem to be due to the acceptance of market risk in exchange for expected reward. For example, it's presumed that value ...

The Essence of Evidence-Based Investing

Created on Monday, 06 April 2015. Posted in Content/our blog

In our most recent blog, "What Drives Market Returns?" we explored how markets deliver wealth to those who invest their financial capital in human enterprise. But, as with any risky venture, there are ...

What Drives Market Returns?

Created on Tuesday, 10 March 2015. Posted in Content/our blog

In last month's blog, "Get Along, Little Market," we discussed the benefits of diversifying your investments to minimize avoidable risks, manage those that are unavoidable when we're seeking market gains, ...

Get Along, Little Market

Created on Tuesday, 17 February 2015. Posted in Content/our blog

As we discussed in our previous blog, “Managing the Market’s Risky Business,” properly diversifying your investment portfolio helps to minimize unnecessary risks and better manage those that remain. But ...