The numbers show that active management simply doesn’t work. There are several arguments against active fund managers, but one of the most damning is that winners don’t seem to repeat.
Every four years we talk about how this year’s Presidential election is the most important ever. Along the way, people make a whole host of sweeping statements about how picking their team will lead to all of the good things happening, but picking the other team will lead to all of the bad things happening […]
The market is going to drag your portfolio through every mud puddle it finds. It’s your job to pick your portfolio up, dust it off, and point it back in the right direction. Rebalancing brings your portfolio back into line, and ensures that you are taking the right amount of risk through time.
Everyone always talks about investing (and planning) for the long term. But they’re usually vague about what the “long term” actually means. Does that mean 5 years? 10 years? More? (Spoiler: the answer is definitely more). And frankly, talking about how you need to focus on the long term can feel like a bit of […]
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 management landscape. This newsletter […]
It’s been a pretty wild ride with GameStop. But while there has been a lot happening, does it actually mean much? We’ve examined the details of what happened elsewhere, so I’m going to focus on some of the bigger questions that this whole affair raises, and specifically how this all impacts long-term investors. So let’s […]
It’s a bit of an understatement to say that GameStop has been in the news lately. There are a lot of people opining about what is going on, but we want to cut through that and look at what actually happened (we look at what it all means in another article). So what actually happened, and […]
There’s no magic formula for investing. The financial markets seem to take some sort of cosmic joy in bringing people back down to Earth. And it’s value investing’s turn – in fact, it’s been value investing’s turn for a while now. To put it mildly, this has been a rough decade and a half for value stocks.
Interest rates are one of the key tools that the Federal Reserve has to manage the economy. Changing how much it costs to borrow money can slow down an economy or give a the economy a nudge.
Today, March 9th, 2020, was a bad day for the financial markets. There are four main elements to this story that I want to pick apart…