Posts filed under “Investing”

Investors Always Seem to Miss Stock Market Rallies


Source: Business Insider

 

 

UPDATE: We’ve shown the opposite over the years as well — here is what happens if you manage to miss the worst days.

Missing Best & Worst Days in Markets – April 28th, 2011

• Missing Best & Worst Days of S&P500 – September 14th, 2010

The fascinating wrinkle about this is they often occur around the same time. Avoiding the worst yet still catching the best is a very very challenging trick to execute.

Category: Cycles, Investing, Markets

Shareholder Value Maximization: The World’s Dumbest Idea?


Source: CFA Institute

Category: Corporate Management, Investing, Video

Two Election Winners

Two Election Winners David R. Kotok, November 5, 2014       Two winners emerge after the election. One is the Gini coefficient. It measures the income divide of the population. It has been widening. Those at the top income level have improved their wealth. The middle income level has been eroding and is experiencing…Read More

Category: Investing, Politics, Think Tank

Disbelief in Equities is What is Driving Them Higher

As a fan of investor psychology, I find sentiment intriguing. Measuring it is a challenge. We can’t trust what people say because they become bullish after they buy and bearish after they sell, convincing themselves that past trades were the correct way to go. Humans are notorious liars — especially to themselves. When they are…Read More

Category: Investing, Psychology, Sentiment

Find a financial adviser who will put your interests first

Find a financial adviser who will put your interests first Barry Ritholtz Washington Post, October 26 2014       Today’s column is going to be on the wonky side, but stay with me — it is very important stuff. For investors seeking some help, it can be crucial. If you want financial advice, there…Read More

Category: Apprenticed Investor, Investing, Legal

Misunderstanding the Magazine Cover Indicator

One of the more infamous and misunderstood market signals is the magazine-cover indicator. Created by Paul Macrae Montgomery, this contrary indicator essentially tells us when some investment theme or fad has reached a crescendo. The thinking goes that by the time the editors of Time find out about some hot investing trend, it is all…Read More

Category: Contrary Indicators, Investing

Why There Are Two Standards for Financial Advice

> My Sunday Washington Post Business Section column is out. This morning, we look at the various legal standards of care financial advisors must adhere to. The print version had the full headline Why Two Standards for Financial Advice? while the online version was Find a financial adviser who will put your interests first. As I…Read More

Category: Finance, Investing, Legal

Asset Classes: Real 10-Year Expected Return

Source: Research Affiliates   Rob Arnott of Research Affiliates writes: In a world of low bond yields and slow economic growth, historically realized 5-6% real (7-8% nominal) asset class returns may be unrealistic expectations for the future. In other words, assets with above-average valuations may not deliver the sort of returns people came to expect…Read More

Category: Asset Allocation, Investing, Markets

You Are Worrying About the Wrong Things

No, you are not going to die from Ebola. To quote a wag on Twitter, “More Americans have been married to Kim Kardashian than have died from Ebola.” But the latest scare does have a small positive: It provides me with yet another opportunity to lecture you about how incredibly dumb your lizard brain is….Read More

Category: Investing, Politics, Psychology, Really, really bad calls

What Town Should We Visit Next?

  We just got back from D.C. where we visited lots of existing (and future) clients. We also met lots of folks who were interested in LiftOff. We are planning our next trip for earlier next year, and decided to throw this open to the crew: What town should we visit next? If you would…Read More

Category: Asset Allocation, Investing