Are You Still Investing Without a Margin of Safety?
In retrospect, Brexit turned out to be more meaningful than Grexit. And while the immediate reaction of global financial markets (NYSEARCA:VT) to the England’s decisive vote…
Category: Retirement Planning
Sexy vs. Boring: Who’s Winning?
Higher investment risk leads to higher investment returns, right? It’s a Wall Street axiom that we’ve heard so many times it’s become ingrained in us.…
How Should Your Non-Core Portfolio Look?
I’ve written extensively about the role of an investor’s non-core portfolio. It’s one of the three cornerstones of a well-built portfolio (see figure below) and…
Should Correlations Drive Your Investment Decisions?
Do stock market correlations matter? Statisticians use correlations (or cross-correlation) to measure the relationship between asset classes or investments. The general idea is to better…
The Performance of Active Managers Keeps Getting Worse
Years ago John Bogle once quipped, “If the data do not prove that indexing wins, well, the data are wrong. ” Here’s the latest: There’s…
Is “Saving More Money” Always the Cure?
Wall Street’s remedy for fixing whatever problems that afflict your investment portfolio is simple: “Save more money.” And if you happen to be among the godforsaken group…
A $1.58 Million Portfolio with No Captain
Has your financial advisor contacted you lately? Although global stock markets (NYSEARCA:VT) have recovered from their earlier in the year losses, it could’ve revealed flaws with your investment…
3 Reasons Why Robo Advisors are Hazardous to Your Wealth
“Robo advisors will manage over $5 trillion in 10-years.” Have you seen headlines like this? According to the reports, robo advisors are so wonderful, they’re going to…
4 Moments When “Stay the Course” is the Wrong Investment Advice
The worst January start for U.S. stocks since 2009 should get your attention. If you’ve been hiding underneath a rock or hibernating in a cave-like dwelling, it’s…
If You’re Not Preventing Stock Market Losses, You Better Start Now
What’s more important? Making gains in the stock market or preventing losses? Before answering that question, let’s list a few common fallacies about risk: •…
Don’t Count on the Fed to Backstop Your Investments
Yes kids, stock prices can sometimes plummet. And they did during the first trading session of 2016. It’s a helpful reminder to forgetful innocents about this…
(Podcast) Your 2016 Investing Philosophy in Just Three Words
The beginning of a new year is always an important moment for personal reflection. And whatever it is that we want from our lives –…
4 Things to Understand about Your Portfolio’s Margin of Safety
Does your portfolio have a margin of safety? I ask that question because the total U.S. stock market (NYSEARCA:SCHB) has been rocky over the past…
DON’T Invest a Single Dime Without this Crucial Document
Imagine hiring a builder to construct you a home. You tell the builder how you want the home to look and you tell them about all your desired features.…
The Cost of Investment Advice is Still Too High
There are 118 million U.S. households and 108 million have under $500,000 of investable assets while 100 million have less than $100,000 to invest. What…
The Proper Context of Hedge Fund Money
In case you missed it, Wall Street’s rich and famous are having their worst yearly performance since 2011. Big bets by hedge funds on energy (NYSEARCA:XLE),…
Improving Bogle’s 50/50 Portfolio
Jack Bogle has made changes inside his personal investment portfolio. In a news interview last week, the legendary indexer revealed that his 60% allocation to U.S.…
Wall Street’s Perennial Optimists Strike Again
It’s been said the only bubbles that Wall Street sees are the bubbles in its champagne glasses. It appears those words are true because year-end targets…
Portfolio Report Card: A $1.75 Million Account Sunk by Heavy Cost
Is the risk character of your investments compatible with you? If not, it’s a telltale sign that your investment portfolio is seriously flawed. Frequently, these risk…
Portfolio Exam: A Hyper-Aggressive $1.29 Million Portfolio with Flaws
It’s commonly and incorrectly presumed that people with large investment portfolios are smart investors. But as counterintuitive as it may sound, this false presumption is…