• Call Us: 425-373-9393

Archive For: Investing

Value of Diversification

I was meeting with a client yesterday for one of our regular reviews of which investments is always one part of the review session. He’s a busy tech guy and doesn’t pay too much attention to his investments until we meet (a good trait as far as I’m concerned). Anyway, ... Read More
 

Active Mutual Funds in Europe Do Poorly Too

According to a report from the S&P Dow Jones Indices,  every actively managed equity fund in Europe investing in global, emerging and US markets has failed to beat its benchmark over the past decade. The study looked at 25,00 actively-managed funds and found that “98.9 per cent of US equity ... Read More
 

Market Bounced Back, Again

I don’t know if you noticed, but the S&P 500 Index (a proxy for the U.S. stock market) closed higher yesterday than it opened on January 2, 2016. In the meantime, there has been a dip in investment markets that was sudden and sharp that caused many investors to be ... Read More
 

Majority of Active Mutual Funds Fail, Again

According to the S&P Dow Jones Indices just released results, over the one-year period ending Dec. 31, 2015, 66.11% of large-cap managers, 56.81% of mid-cap managers, and 72.2% of small-cap managers underperformed their respective benchmarks. Over the five-year period ending on 12/31/15, the results are even worse for active mutual ... Read More
 

Regency Bias

Recency bias is a term that behavioral finance people use to describe our tendency to put too much emphasis on recent events instead of having a longer view. A case in point. There is the stock of a large U.S. company that has lost 15% of its value in the ... Read More
 

Stock Market in Presidential Election Years

I love to watch the theater that is our Presidential Election process. After the latest round of primaries, I started to wonder what effect this goofy process might have on the stock market. After all, this year has been off to a rocky start. Might this foretell a down year? ... Read More
 

Stories Affect Investment Markets

Even though we talk about investment markets as being efficient, they are not perfectly efficient because people are involved and people like stories. Since the dawn of our species, mankind has made up stories to explain what we could not understand. Greek myths explain how evil came to exist in ... Read More
 

Fiduciary Standard Debate

There is currently a hot debate going on that the Department of Labor (DOL) has fostered regarding whether or not the fiduciary standard should be required for advisers who provide advice to retirement plan participants. The President is behind the standard as is Hilary Clinton and many other politicians. Aligned ... Read More
 

Deadly Investment Sins

While working on an article about investing, I started by making a list of the most common investment mistakes that investors make. The list is long (waaaaay too long) so I divided individual mistakes into categories. I’ve dubbed these the “7 Deadly Investment Sins.” Here they are: Greed Fear Ignorance ... Read More
 

Simple Formula for Investing Success

The simplest formula for investment success is to follow the three “P’s”: Perspective: markets go up and down and this too will pass (good or bad). Persistence: long journeys require putting one foot in front of the other and sticking with it. Patience: raising kids, planting gardens, learning a new ... Read More