Happy Pi Day (Cherry Pie Included)!

In case you are feeling short of things to celebrate, there is always Pi Day – March 14 (3/14).
 
As you remember from high school math, Pi (Greek letter “π”) is a mathematical symbol representing the ratio of a circle’s circumference to its diameter — which is approximately 3.14159.
 
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No One Knows What Will Happen with Brexit… But Long-Term Investors Probably Shouldn’t Worry Too Much

This blog is from the July issue of Portfolio Perspectives.
 
Unlike fans of horror movies, markets hate scary surprises.
 
On June 22, many markets, even betting parlors, were predicting that British voters would opt to stay in the European Union (the odds went as high as 80% for staying). On June 23, gamblers and markets were proven wrong and stocks fell precipitously around the world, plunging more than 5% in the U.S. in just two days.
 
Some of the doomsayers from January, when the S&P 500 Index sank more than 10% and then rebounded to positive territory again by the end of Q1, came out of the woodwork to predict new Brexit-related disasters. Even European Council President Donald Tusk said, “I fear that Brexit could be the beginning of the destruction of not only the EU but also of western political civilization in its entirety.” Continue reading

Ho Ho Horrible Holiday Investing Myths

(This blog was originally published in 2014.)
 
Instead of sitting back with a glass of egg nog and overdosing on Rankin/Bass holiday specials, some investors spend year-end trying to decorate their portfolios with dubious investment ideas. Here are three holiday follies that are even nuttier and harder to digest than fruitcake.
 
Santa Claus Rally
Yes Virginia, there may be a Santa Claus, but don’t count on a Santa Claus Rally — a small upward blip in stock prices that sometimes occurs between Christmas and New Year’s. Explanations for the rally, which was “discovered” in 1972, include bears and other pessimists giving in to the holiday spirit, year-end tax planning, even investors spending Christmas bonuses. Continue reading

The Last Redoubt of Active Management—Down Markets?

Blog_Sad_BearSo there I am, at a recent Loring Ward Conference during a break. We’d just wrapped up a presentation on Asset Class Investing that includes a number of slides on the challenges active managers have in consistently and predictably outperforming the market. Continue reading

Ho Ho Horrible Holiday Investing Myths

Instead of sitting back with a glass of egg nog and overdosing on Rankin/Bass holiday specials, some investors spend year-end trying to decorate their portfolios with dubious investment ideas. Here are four holiday follies that are even nuttier and harder to digest than fruitcake.

 

Santa Claus Rally
Yes Virginia, there may be a Santa Claus, but don’t count on a Santa Claus Rally — a small upward blip in stock prices that sometimes occurs between Christmas and New Year’s. Explanations for the rally, which was “discovered” in 1972, include bears and other pessimists giving in to the holiday spirit, year-end tax planning, even investors spending Christmas bonuses. Continue reading

Busted Brackets

Shakespeare’s Julius Caesar made March famous and NCAA basketball made it fun. In March, all of us college basketball gurus show the world how smart we are — or are not in most cases — by filling out our brackets for the Big Dance. Millions of us do it (even the President) and the results are a testament to just how lousy we as human beings are at forecasting anything.
 
busted_brackets
 
Source: http://www.businessinsider.com/wall-street-2013-sp-500-outlook-2013-1
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