In part one of our quarterly recap we looked at the bumpy ride over the last three months and we saw how a disciplined approach paid off. Now let’s look at two common questions investors are currently considering. The questions are: The market’s had a good run since 2009, so how much longer can the recovery last? But, the market’s... Read More
Q1 Asset Class Performance
The S&P 500 eked out a seemingly benign 1.4% return in the first quarter—an unremarkable result but a bumpy ride. This positive return came despite the “worst 10-day start to a calendar year ever,” and Q1 became the first quarter since 1933 to fall by as much as 10% and still finish with a positive return. Top performing asset classes... Read More
Why You Should Ignore the “Best” Timing Signal on Wall Street
I came across an article the other day on Yahoo Finance with the scary sounding title of “One of the best signals in the stock market is saying it may be time to sell.” I hate articles like this. They prey on people’s emotions and (sometimes) limited knowledge of market history. I have enough context built to know that articles... Read More
An Active Management Performance Update
A couple of weeks back, Bloomberg published an article titled “The World's Most Popular Stock Picks Are Sinking.” And from the first line, the conclusion was clear: “A successful strategy to avoid the worst of this year’s equity retreat: ask your analyst what to buy and sell, then do the opposite.” As we’ve written before, not making investment decisions based... Read More
Investing Lessons From Intel’s Copy Exactly Philosophy
Last week, in the New York Times Gary Belsky wrote an article titled “Why We Think We’re Better Investors Than We Are." In it, he lists several common cognitive biases which lead people to make poor investment decisions. However, I suspect (due to the first bias Belsky lists—overconfidence) a lot of individuals who read this article are going to think,... Read More
The Most Horrendous Lie on Wall Street is Getting Exposed
“It is difficult to get a man to understand something, when his salary depends on his not understanding it.” ― Upton Sinclair Earlier this month writing in Fortune Magazine, Josh Brown, the CEO of Ritholtz Wealth Management, called opposition to a pending Department of Labor (DOL) rule “The Most Horrendous Lie on Wall Street.” It turns out, this lie is already... Read More
Should You Hedge Against Natural Disasters?
Note: This article is an attempt to quantify the investment impact of natural disasters. It is not meant to minimize the terrible emotional and financial toll they take on of those directly affected, or downplay the devastating loss of life which occurred, and will happen again in future disasters. Last summer the New Yorker published an article titled “.” Since... Read More
Is it Time to Abandon Emerging Market Stocks?
Emerging market stocks have struggled quite a bit recently. Down 15% last year and significantly underperforming U.S. stocks since mid-year 2012, some investors are wondering: Is it time to abandon Emerging market stocks? The quick answer is no. And here’s why. Allocating to emerging markets means investing in stocks of companies based in developing countries around the world. Over its... Read More
How to increase investment options in your Intel Retirement accounts
Integrate, v. ˈin-tə-ˌgrāt To form, coordinate, or blend into a functioning or unified whole A frequent complaint we hear from Intel employees surrounds the investment restrictions in their retirement accounts. While the investment options in the accounts are increasing, you are still limited to a preset menu in each account. Those wishing to expand their allocation beyond this list of funds cannot... Read More
The Myth of Wall Street and Ben Graham on The Power of a Simple and Consistent Approach
Everyone enjoys a good story. Whether reading a book, watching a movie, or talking with friends, stories are a great way to share, learn, and connect. But when it comes to investing, the stories we believe—the stories told in the financial media and by Wall Street—often lead us astray. The entire purpose of a good story is to trigger an... Read More