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Stock Markets

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…

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Bitcoin:  Wave of the future, or bubble in the making?

Should You Bite on Bitcoin?

By | Bitcoin, Crypotcurrency, Expected Return, Investing Lessons, Returns, Risk, Speculation | No Comments

No matter where I went over the holidays it seems there were three subjects everyone wanted to discuss.  Whether it was a formal holiday party, or an informal gathering of old friends, discussions centered around 1) The new tax plan and what it would or wouldn’t do for the economy, 2) The job Donald Trump has done as President in…

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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…

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Sir Isaac Newton's South Sea Bubble experience provides investors with valuable lessons.

Lessons from Newton’s South Sea Bubble Disaster

By | Investing Lessons, Market Corrections, Stock Markets | No Comments

If I were to postulate that Sir Isaac Newton (1642 – 1727) was one of the most brilliant minds the human race has ever seen, I would have ample evidence to support my position.  The English physicist and mathematician is legendary in his contributions to the advancement of mankind.  Newton is credited with inventing the reflecting telescope in 1671.  Newton…

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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…

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Over one, five and ten year periods over 80% of actively-managed funds under-perform their benchmarks.

Active Managers Trounced Again in First Quarter of 2016

By | Active Investing, Passive Investing, Stock Markets | No Comments

Volatile markets are generally viewed as a prime opportunity for active managers to shine and demonstrate their stock-picking and market-timing skills and prowess.  Equity markets don’t get much more volatile than they were in the first quarter of 2016, but the investment results for active managers were disappointing. How volatile did equity markets get?  Well, consider that the S&P 500…

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