Market Timing

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…

Read More

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…

Read More

Are the Markets’ New Highs the Current Worry?

There are a handful of times a year when certain events precipitate a market drop. So much so, that we feel it is helpful to provide perspective on why investing in the stock market is a great way to help you build your asset base so when you retire you can better generate retirement income…

Read More

Rebalancing Frequency

Almost everyone agrees that rebalancing your portfolio is one of the keys to having a successful investment outcome. We know that your asset allocation determines how your portfolio will perform. Successful investors spend a lot of time determining what they want to include in their portfolios, and how they want to spread out their assets.…

Read More

Should You Own Bonds in a Rising Rate Environment?

Most people don’t think too much about their bonds. They really are the boring foundation for your portfolio. However, occasionally they spring to the surface, and this is one of those times. Lately, a number of people have been wondering why they should be investing in bonds, since we’re obviously in a period of rising…

Read More

What are Market Valuations? (Part 2)

Taking distributions from an investment portfolio amplifies the impacts of portfolio volatility, making retirement income planning particularly tricky as distributions tend to be the primary income source for retirees. We can use Monte Carlo simulations to show the increase of money-weighted investment returns in retirement, which has important implications about the choice for a fixed portfolio return assumption.

Read More

Can You Time Risk Premiums?

No one really likes risk. We all can deal with it, but that doesn’t mean we want to. Yes, there are people who live to jump out of airplanes and walk on tight ropes with no net, but I’m talking about financial risk. Unfortunately, at least in investing, risk and return are tightly intertwined. If…

Read More

A World of Opportunities: The Benefits of Global Diversification

If the beginning of 2016 has you re-evaluating your asset allocation, you’re not alone. While we’re not looking at big losses anymore, it’s been a bumpy ride. A quick glance at the global market, though, hasn’t offered any relief. China keeps devaluing its currency, and the economies of Russia and Brazil are slumping. U.S. stocks…

Read More

Are Oil Prices Lower Because of the Stock Market?

Oil seems to be quite volatile in the market lately. Many people have even asked if falling oil prices mean the stock market is declining. And financial news isn’t helping. Yes, oil is rather volatile right now. But that’s nothing new. And yes, the markets have been pretty out of sorts so far in 2016.…

Read More

How Should an Overvalued Market Affect Your Investment Plan?

Even with the rough month we just had, people are still talking about how the market is “overvalued.” They could be right or wrong. No one in the entire world knows. Markets don’t move capriciously. They move because something new has happened – new information has arisen. The market has already absorbed all currently available…

Read More