Author: Peter Lazaroff

Volatility Is Not the Enemy

A few months ago we discussed keeping return expectations in check as higher valuations increase the probability of lower returns.  We have no idea what the future holds and whether lower stock returns will come to fruition, but we do expect stocks to provide you with the best chance of outpacing Read more…

Risk Tolerance

Today we continue a discussion that began with defining risk and then focused on measuring the risk/return tradeoff. To briefly summarize those articles, we learned: Read more…

Do It Yourself or Hire an Advisor?

A common dilemma that everyone faces at one time or another is the choice of whether to manage your own investment portfolio or hire the help of a financial professional. As an investment professional myself, I am biased towards seeking out help, but I’d like to share a story to help frame this Read more…

Measuring the Risk and Return Tradeoff

In an earlier post, we started the process of defining risk by introducing three key ideas: Read more…

Asset Location Strategies

Everyone is thrilled that tax season is behind us. Now it’s time to focus on future tax bills. Read more…

Defining Risk

We frequently say that risk and return are related, but many people don’t understand exactly what we mean by the word “risk.” Read more…

Evaluating Cash

“Today people who hold cash equivalents feel comfortable. They shouldn’t. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value.” Read more…

Valuations and Return Expectations

Valuation – the price you pay for earnings, assets minus liabilities, cash flow, etc – is one of the best indicators of future returns.  In general, we experience lower returns when valuations are high (i.e. stocks are more expensive), and higher returns when valuations are low (stocks are cheaper). Read more…