Category

Investment Returns

Is there a right and wrong time to retire?

The Worst Time to Retire?

By | Investment Returns, Market Index, Retiree, Retirement, Retirement Income, Retirement Planning, Retirement Savings, Returns, Risk | No Comments

Investment News, a weekly national publication for financial advisors, recently published an article titled “Sinking At Retirement” by Greg Iacurci.  The article maintains, “Current market conditions bode horribly for near-term retirees.”  Many baby boomers, including some of our clients, are planning to retire soon.  Should pre-retirees on the verge of retirement be concerned about the impact current market conditions may…

Read More
Market Volatility Can Test the Resolve of Investors Who React Emotionally

Some Perspective on Market Volatility

By | Investing Lessons, Investment Returns, Market Corrections, Returns, Stock Markets, Uncategorized | No Comments

Before the brief ten percent market correction that began on January 26th and ended on February 8th, domestic equity (stock) markets enjoyed the longest period of market calm in history.  Prior to the recent period of volatility, the S&P 500 had not retreated by 3% over one day or several days since November 4, 2016.  The streak shattered the previous…

Read More
2017:  The Year in Review

The Year in Review: 2017

By | Investing Lessons, Investment Returns, Market Index, Returns, Stock Markets | No Comments

Heading into the year, 2017 was viewed by many investors with a great deal of trepidation and concern.  Political turmoil in the US, uncertainty in the global  economy, rising tensions in the middle east, strained relations with North Korea, and an eight year-old domestic bull market gave many investors pause for the prospects of 2017. For all the potential causes…

Read More
A new fifteen year study finds that passive investing strategies beat active investing strategies.

Passive Investing Beats Active Investing Over 15 Year Timeframe

By | Active Investing, Investing Lessons, Investment Returns, Passive Investing | No Comments

“Just wait until next year” was the lament of faithful Chicago Cubs’ fans for over 100 years before last season.  From 1908 until their victory over the Cleveland Indians in the 2016 World Series, fans of “the Lovable Losers” would lick their wounds from the previous season while optimistically looking forward to next spring when the Cubs would begin the…

Read More
Investors Can Learn a Lot from Farmers!

What Lessons Can Investors Learn from Farmers?

By | Financial Planning, Investing Lessons, Investment Returns, Passive Investing, Patience, Retirement Planning, Retirement Savings, Returns | No Comments

Spring is my favorite season of the year.  I suspect many of you feel the same way based on the amount of outdoor activity I have observed in recent days.  For me, spring means the start of the Major League Baseball season, hours of therapeutic and relaxing lawn care and landscaping activities, and the opportunity to watch my daughter Erin…

Read More
Warren Buffett has declared himself the winner of the "Million-Dollar Bet."

Warren Buffett Declares Himself the Winner of the “Million-Dollar Bet”

By | Active Investing, Hedge Funds, Investing Lessons, Investment Returns, Passive Investing, Warren Buffett | No Comments

They do not call him the “Oracle of Omaha” for nothing; Warren Buffett knows a good bet when he sees one.  Nine years into a ten-year wager, now referred to as the “Million Dollar Bet,” Buffett has declared himself the winner. What exactly is the “Million-Dollar Bet?”  In 2007, Buffett engaged in a wager with asset management firm Protégé Partners…

Read More
The 'average' investor earned slightly more than 5% in their investment portfolio in 2016.

How Did the Average Investor Do in 2016?

By | Active Investing, Behavioral Finance, Investment Returns, Passive Investing, Real Returns, Stock Markets | No Comments

Openfolio, a company dedicated to providing information and transparency to investors, recently released some data about how investors performed in 2016.  Openfolio aggregates the performance data from over 70,000 subscribers who voluntarily and anonymously share their investment portfolio information with Openfolio.  The idea is that sharing data among its users should help them realize better investment performance.  We will discuss…

Read More
Why You Should Care About Real Rates of Return

Why You Should Care About Real Rates of Return

By | Interest Rates, Investment Returns, Real Returns, Returns | No Comments

Nominal interest rates are currently below zero in many countries, including Germany, Denmark, Switzerland,     Sweden, and Japan.  These levels have shattered the belief that zero is the lowest that interest rates can go.  While negative nominal rates are a relatively new phenomenon, historically speaking periods of widespread negative real returns across countries have been quite common. Those of us who…

Read More