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…
Having the knowledge and foresight to understand that it “isn’t different this time,” and that we have experienced these conditions before may help you keep the discipline long enough to “wait until tomorrow” for market conditions to change.
When I began my career in the financial planning and investment advisory industry I worked for one of the large brokerage firms in downtown Toledo. As a trainee in the firm’s development program, I soon befriended another trainee. I will call him Nelson. Like me, Nelson was making a significant career change in joining the firm. We got to know each…
Clients of Bollin Wealth Management LLC who follow Dimensional Fund Advisors (DFA) mutual funds in the news may have recently seen some exciting news about a familiar face. Professor Eugene Fama, a finance professor at the University of Chicago’s Booth School of Business and Dimensional Fund Advisors board member, was one of three winners of the Nobel Prize in Economics;…
It had all the makings of a great investment horror story, especially since it was occurring in the month of October. The showdown between Democrats and Republicans wrangling over the government shutdown and debt ceiling had many in the media and on Wall Street predicting financial Armageddon. “If the U.S. were to default on its debt obligations, the financial world…
T. Rowe Price recently barred 1,300 American Airline employees from trading in their 401(k) plans in an effort to discourage mass trading. The company acted after providing several warnings to the barred employees. According to company spokesman Edward Giltenan T. Rowe Price “took this step to protect all fund shareholders against the disruptive impact of excessive trading,” The group of…
Anticipating market volatility ahead of a potential Federal Government shutdown over the debt ceiling debate and an expected announcement that the Federal Reserve will begin to slow down its quantitative easing program, investors headed to the sidelines in droves in August. Investors sold more than $30 billion of bonds and bond funds in the month of August. August also saw…
Recently we have had a few inquiries from prospective clients about a relatively new annuity product called a deferred-income annuity. Insurance companies are touting the new product as a way to build your own future retirement pension. So consumers, especially baby boomers, are naturally interested. In fact, sales of deferred-income annuities have more than doubled over the last year alone….
Although it probably didn’t come as much of a surprise for many observers, earlier this month the city of Detroit filed for bankruptcy protection making it the largest city to ever do so. Detroit was once the fourth largest city in the United States, with a population of just under 2 million residents. For a multitude of reasons (government corruption,…
Each January, a group of prominent investment professionals gather in New York as members of the Barron’s Roundtable to trade quips, stock ideas, and the outlook for markets and economic trends worldwide. Barron’s-a weekly financial newspaper with a small but devoted following of professional and do-it-yourself investors-publishes a transcript of their remarks over three successive issues. The quotations above are…
