Many investors lack a strong understanding of bond portfolio basics. As a result, there are some misconceptions about the use of individual bonds versus bond funds. Many individual bondholders believe the implications of interest rate fluctuations don’t impact them because they will receive their Read more…
Stock Selloff Stats
Market sentiment remains negative with the S&P 500 down 12.3% to date and 13.92% from the high point set in May 2015. Read more…
The Failure of Active Management
For the past 11 years, the S&P Indices Versus Active (SPIVA) Scorecard has been the de facto scorekeeper of the active versus passive debate, and last month they released their mid-year update. Below is a graphic of active funds that failed to beat their respective index. As you can see, the Read more…
Stock Market Correction
I wrote an article at the beginning of the summer titled Volatility is Not the Enemy. I remember thinking it would be the perfect article for whenever the market had a correction. Since it had been nearly four years since the last correction, I figured it should be published and referred back to Read more…
Bond Portfolio Basics
Individual investors never seem very interested in their bond portfolio. Maybe it’s because bonds lack the sense of identity that often comes with owning a stock. Think about it: nobody brags out about lending money to Apple, they brag about owning Apple. In addition, you can theoretically own a Read more…
The Impact of Rising Rates on Your Bond Portfolio
Rising interest rates have been a concern among bond investors for many years. The Federal Reserve is signaling that they remain on track to raise interest rates in 2015, which means that the wait may be finally over. While the Fed may raise short-term interest rates in 2015, longer-term rates are Read more…
Volatility as the New Normal
If, as many investment experts are saying today, volatility is the new normal in equity markets, it makes even more sense than ever to structure a portfolio that can help isolate you to some extent from these major market swings. Read more…
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…
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…
