What can skydiving teach us about investing? It teaches about risk and reward, and can give you a perspective on risk that may change the way you think about investing. Continue reading
This is the first in a two-part blog of our Quarterly Investment Committee Briefing.
So far this year, one of the big stories in global markets was the surprise Brexit vote in the third week of June. Conventional wisdom was that this event was a harbinger of future economic weakness and lower markets. Markets fell a bit on the news; however, as so often happens with conventional wisdom, it was quickly cast aside. By the start of Q3, the S&P 500 had almost recovered to its 2016 high levels. In the weeks that followed, the S&P 500 and several other major stock indexes crept higher… until August 15 when they broke through to an all-time record high level. Continue reading
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
“It is absolutely impossible for a client with a fundamental fear of the future to become a successful investor, or even to formulate a rational long-term financial plan.” (Nick Murray)
How do you think your clients feel when they leave your office or get off the phone with you — optimistic or pessimistic?
The answer may lie in how you define your investment process for clients (and embrace a wider wealth management process as well). Continue reading
Whenever markets take a dip, it’s natural to question performance. Is my portfolio behaving differently than it should? Is this downturn worse than the last one? Is it different this time? Continue reading
The gold standard. Good as gold. The golden years…
So many of our expressions of value and excellence derive from gold. We even use it to symbolize the lifelong commitment (ideally) of marriage. But when it comes to investing, this soft, shiny metal isn’t so precious.
When will investors (and many financial advisors) learn the potential perils of chasing returns?
Take a look at the chart below showing flows into bond funds from 2009 through 2012. Billions of dollars poured in, year after year.
Equity and Bond Flows 2004 – 2013
Meanwhile, despite five-in-a-row positive years for U.S. equity markets, investors fled stocks until the bond market turned sour in 2013, with a 15.1% decline in 30-Year U.S. Treasuries.