Category: Tag: Investing View all
When international stock returns lag, investors may feel tempted to double down on their home market. Historical data suggests the long-term benefits of diversifying globally.
The path to success in many areas of life is paved with continual hard work, intense activity, and a day-to-day focus on results. However, for many investors who adopt this approach to managing their wealth, that can be turned upside down.
Bitcoin and other cryptocurrencies are receiving intense media coverage, prompting many investors to wonder whether these new types of electronic money deserve a place in their portfolios.
Welcome back to our “ABCs of Behavioral Biases.” Today, we’ll get started by introducing you to four self-inflicted biases that knock a number of investors off-course: anchoring, blind spot, confirmation and familiarity bias. Anchoring Bias What is it? …
Your own behavioral biases are often the greatest threat to your financial well-being. You stand a much better chance of thwarting them once you know they’re there!
There are many other variations on these themes. The point is, indexes using different weightings can reach significantly different conclusions about the performance of the same market slice.
Think of index points as being like thermometer degrees. Most of us can’t explain exactly how a degree is calculated, but we know hot from cold. We also know that Fahrenheit and Celsius both tell us what the temperature is, in different ways.
Early on, indexes were designed to offer a rough idea of how a market segment and its underlying economy were faring.
What is it, and what does it mean to you? Learn about this highly disciplined approach to investment management.
Roger Gibson, the author of the must read book “Asset Allocation: Balancing Financial Risk,” shows that including some portion of commodities in your portfolio of well diversified equity, bonds, and real estate produces better compound average returns–higher, risk-adjusted returns.
“England voted to exit the European Union in 2016 and other countries could follow suit but advisors and fund managers suggest that now is not the time to abandon investing abroad entirely.” –Juliette Fairley. In her article about why investing in Eur …
I recently had a conversation with a client about the upcoming presidential election and how it may impact the markets–and more importantly, their portfolio. We discussed some general guidance about us not knowing the future, current market prices, ma …