A few weeks ago we received a question from a concerned client. After reading an article about negative interest rates on many Eurozone government bonds, he wanted to know: “How worried should I be?” But now, with German bonds rebounding from negative or near-zero rates, it highlights what we communicated. The quote below, from Reuters on May 6th, shows just... Read More
Q1 Educational Topic – Managed Futures
Key Points: Futures are an agreement to purchase something in the future with the price set today. Managed futures funds typically seek to capture returns by taking advantage of “momentum” in investment prices. Investing in managed futures is not as straight forward as other investments. There are several things to be aware of. Last time on the blog, we reviewed... Read More
Quarterly Investment Review: Q1 2015
1st Quarter Market Performance Key Points: Investments in most areas had positive returns in the first quarter. For the first time in a while, U.S. stocks were not the best place to be. Commodities were down in the quarter, but still serve a role in the portfolio. Investments in most areas (i.e., asset classes) were up in the first quarter... Read More
The stock market is not the economy
Should we invest based on economic forecasts or the potential growth rates in different countries? Country XYZ is growing really fast right now. Should we increase our allocation to this part of the world? The economy of the ABC region is really terrible right now. Shouldn’t we just avoid it altogether? Here at Cordant, we hear these types of questions... Read More
How to overcome emotions and be a better investor
*Note: This is Part 2 of a two-part series. Click here to check out Part 1, where we discussed how emotions can inhibit our ability to make wise investment decisions. To receive helpful posts like this directly to your inbox, sign up for our free newsletter! Last time on the Cordant blog, we discussed how emotional responses can derail you... Read More
The cost of emotion: why you make poor investment decisions
*Note: This is Part 1 of a two-part series. Stay tuned next time on the Cordant blog, where we’ll explore strategies for overcoming your emotions to make more advantageous investment decisions. To receive Part 2 and other helpful posts directly to your inbox, sign up for our free newsletter! What if I told you that someone with brain damage is... Read More
The Risks Of Owning Individual Stocks
Should I own an individual stock? This is a question we hear frequently in regards to Intel, given our focus on wealth management for their employees. It also comes up with non-Intel clients who are considering other stocks for their individual or trading accounts. And the answer? According to the research, probably not—for two main reasons: Individual stocks are riskier... Read More
Five Investment Tips to Remember in 2015
Google “2015 predictions” and you’ll get 94 million results—23 million of which are for “2015 investment predictions.” As humans, we’re fanatical about obtaining a sense of control—which means making every effort to predict the future. This makes the New Year the perfect time for all manner of peering into crystal balls. But before you get sucked into the 23 million... Read More
Should Struggling Economies Affect Your Investment Strategy?
As the U.S. economy continues to recover from the 2007–2009 recession, much of the rest of the world is falling back into a recession (or is teetering on the brink). Does this mean that global diversification is a bad investment strategy right now? A Treacherous Economic Landscape To help answer this question, let’s explore an oft-documented period of our own... Read More
Driving in the Rear-View Mirror
"In investing, what is comfortable is rarely profitable." - Robert Arnott Investing in U.S. stocks over the last five years has been a pretty comfortable experience, with the U.S. stock market again coming in as one of the best markets worldwide in 2014. Whether you look at YTD returns or the last five years, the U.S. stock market has easily... Read More