What are Alternative Investments?
Diversification has been called the only free lunch in investing, so what’s the alternative? This idea is based on research showing that diversification, through a combination of assets like stocks and bonds, could reduce volatility without reducing expected return or increase expected return without increasing volatility compared to those individual assets alone. Many investors have […]
Where is the Value Premium?
From 1928–2017 the value premium1 in the US had a positive annualized return of approximately 3.5%2. In seven of the last 10 calendar years, however, the value premium in the US has been negative. This has prompted some investors to wonder if such an extended period of underperformance may be cause for concern. But are […]
Tuning Out the Noise
For investors, it can be easy to feel overwhelmed by the relentless stream of news about markets. Being bombarded with data and news headlines presented as impactful to your financial well-being can evoke strong emotional responses from even the most experienced investors. News headlines from the ”lost decade”1 can help illustrate several periods that may […]
Sailing with the Tides and Winds
Embarking on a financial plan is like sailing around the world. The voyage won’t always go to plan, and there’ll be rough seas. But the odds of reaching your destination increase greatly if you are prepared, flexible, patient, and well-advised. A mistake many inexperienced sailors make is not having a plan at all. They embark […]
Recent Market Volatility
After a period of relative calm in the markets, recent market volatility in the stock market has resulted in renewed anxiety for many investors. From February 1–5, the US market (as measured by the Russell 3000 Index) fell almost 6%, resulting in many investors wondering what the future holds and if they should make changes […]