Understanding Bonds: A Key Ingredient in Your Retirement Portfolio
Bonds sit in a strange place in our collective consciousness. They’re the “safe” part of our investment portfolios, but they also conjure up images of Wall Street brokers with a brick sized cell phone back in the 80s. Thankfully, we don’t need to consult with Gordon Gecko about our portfolios anymore. But it is worth […]
The Yield Curve is Inverted. Don’t Panic.
It’s pretty easy to make finance stuff sounds scary. What happens in the financial markets has a direct effect on our retirement – but those same financial markets are basically a black box for most people (and a very dark gray box for a lot more). So it’s very easy for the financial media to […]
Are Stocks Safer in the Long-Term?
When you’re investing, you need to focus on the long-term. This is one of those pieces of received wisdom that everyone has heard, but it’s often wildly misinterpreted. There’s an idea that stocks get safer the longer you hold onto them because you can ride out the bad periods if you are disciplined enough – it’s just a matter of sticking around until the market rewards you for being a “good investor.” To put it simply, this is not the case.
What Does it Mean to Call China a Currency Manipulator?
Monday (August 5th, 2019) was a chaotic day for both the world economy and markets. We want to break down what’s happened, and how that will likely impact your investments.
Ignore the Financial Media
The financial media is omnipresent. Whether it’s hearing about what the Dow did today on your drive home, or a talking head pontificating about how the market’s are obviously about to tank, we are constantly immersed in a miasma of prognostication. Everyone has a take on what the markets will do next, and what you […]
Can TIPS Help You?
Inflation is one of the most pernicious risks facing retirees. While there are a lot of ways to manage inflation risk, TIPS, or Treasury Inflation Protected Securities, are one of the few investment options that directly hedge against inflation risk. They aren’t perfect, and there are certainly some things to consider when you use them […]
Should You Try Timing to Avoid Bad Markets?
WHAT IS OCCAM’S RAZOR? Occam’s Razor is a principle attributed to William Occam, a 14th century philosopher. He stressed that explanations must not be multiplied beyond what is necessary. Thus, Occam’s Razor is a term used to “shave off” or dismiss superfluous explanations for a given event. This concept is largely ignored within the investment […]
How Does the Market in 2018 Stack Up Historically
There’s been a lot of ‘sturm und drang’ around what the markets have been doing lately. The financial media has been talking about how this is the sign of the inevitable end of the world. Of course, we’ve had a few things lately that were also supposed to be signs the world crashing down on our ears. But, well, the world is […]
Is There Such a Thing as “Too Diversified?”
A client brought up the concept of being too diversified recently, and it gave me pause. My initial reaction was that there is no such thing . Diversification is a good thing. It allows you to minimize risks inherent in individual investments (company gets sued, senior executive leaves, “next big thing” flops, etc.) and take […]
The Art of Disciplined Investing
Often the least sexy advice is the right advice. It’s not exciting, but it will accomplish your goals. This goes for investing, too. Think of your portfolio as a farm. You’ll have good years and bad years, but if you focus on the important parts and don’t let yourself get distracted, you’ll reap the rewards […]
