For some of us, 2014 performance has been more difficult to explain to clients than 2008, and I understand why. U.S. Large Cap indexes, the ones our clients zero in on, have been up over 10% for the year, strongly outperforming a globally-diversified portfolio.
I was in New York City last week and attended an IMCA hosted event featuring 2002 Nobel Prize in Economics winner Daniel Kahneman. A psychologist by trade, his expertise has been in the judgment and decision-making areas of behavioral finance.
Addressing the crowd he made several salient points key to the client/advisor relationship: Continue reading
What were people worried about in 2014? Looking at the chart above of frequent Google searches, you can see that there were some big news events last year. Ebola in the U.S. was a big concern in October. And about the time that Ebola worries were at their peak, the S&P 500 hit a low… Continue reading
“Baseball is a lot like life. It’s a day-to-day existence, full of ups and downs.”
Ernie Harwell, the voice of the Detroit Tigers
There are plenty of baseball sayings you can relate to investing — keep your eye on the ball, step up to the plate, don’t let the fear of striking out keep you from playing the game — but there’s a great lesson baseball can teach us about diversification. Continue reading