February 7, 2016

Investors Want Non-Correlated Assets Until They Experience Non-Correlation

Investors Want Non-Correlated Assets Until They Experience Non-Correlation

While many investors say they want a low-correlation portfolio, they don’t want to actually experience a low-correlation portfolio.

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Is There A Christmas Rally In the Markets?

Is There A Christmas Rally In the Markets?

While Santa Claus usually brings something positive for the markets, it isn’t enough to worry about jumping in and out of your investments.

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Don’t Mistake Volatility For Loss

Don't Mistake Volatility For Loss

“Nothing has provided greater risk control over the long term than equities, which are historically without principal risk over 30-year periods…”

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What Games Can’t Teach You About Investing

What Games Can't Teach You About Investing

Many people are first exposed to investing in grade school through a very simple game. Unfortunately, this game teaches all the wrong lessons.

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How to Help Clients Cope With Scary Markets

How to Help Clients Cope With Scary Markets

Staying the course when an index investment is down is very uncomfortable in the short-term but usually the best course of action in the long run.

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Do The Opposite of Wall Street Consensus?

Do The Opposite of Wall Street Consensus?

Contrarian indicators have paid off historically.

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The Crowd Is Usually Wrong

The Crowd Is Usually Wrong

Stocks less frequently traded have better returns.

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Nobel Prize Worthy Advice On Investing

Nobel Prize Worthy Advice On Investing

Here’s how a good advisor should respond when you call about losses in your account.

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Does Past Performance Have Anything To Do With Future Results?

Does Past Performance Have Anything To Do With Future Results?

Is there a correlation which would justify talking about “the momentum of the markets”?

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Guess What Statistic Has The Highest Correlation With The S&P 500?

Guess What Statistic Has The Highest Correlation With The S&P 500?

David Leinweber calls this technique, “torturing the data until it screams.”

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What Investors Really Want

What Investors Want

“In reflecting on our experiences as advisers and investors, we’ve come up with what we believe are the key and often unspoken wants and needs of our investors.”

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Mailbox: Which States Allow Prize-Linked Savings Accounts?

The Drive of the Lottery

There are thirteen states so far. Does your state allow them?

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Bogle’s Best Advice: Don’t Peek

Don't Peek

When it comes to finances, just shut your eyes and keep them closed.

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If You Wouldn’t Buy It, Why Keep It?

Lego Shop

The stock market is one of the few places that when things go on sale we are less likely to want to buy.

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Advisors Focus On Panic Prevention In Volatile Market

Panic Button

Our brains are not wired well for handling the fluctuations in the stock market. Could a financial advisor help?

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Driving Emotions From Your Investment Process: A 12-Step Program

Brain Scan

Don’t let short term volatility ruin a brilliant long term investment strategy.

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Don’t Do Something. Just Stand There!

Sisters Forever

You learn a lot by the discipline of reading old news.

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How To Save Wealthy Clients From Themselves

Brain Scan

“Emotion can undo the best-laid financial plans.”

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Advisors Must Stop Client Self-Destruction

Koala Bear

Sometimes the best advice is when a competent advisor tells you that you are wrong.

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Active Management Has An 82% Failure Rate

Active management failure

Managing investment assets requires managing investor expectations.

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Is A Financial Apocalypse Coming?

The Disaster Diaries by Sam Sheridan

Should you buy as much gold as you can get your hands on?

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The Blank Slate by Stephen Pinker

The Blank Slate by Stephen Pinker

Although it would be wonderful if we lived in a world that lived up to the ideals of the Utopian Vision, we believe along with Stephen Pinker that reality supports the Tragic Vision.

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The Driver of Future Behavior

Brain Scan

Investments consistently outperform investors.

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Thou Shalt Not Covet Thy Neighbor’s Tesla

tesla_t

Since it is inevitable that each group of friends will represent a spectrum of financial capacity, healthy relationships require that all be prepared to manage these pressures.

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The Optimist’s Antidote

RIP best ideas

Behavioral psychology research suggests that you should send your best ideas to the grave.

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Improve Your Financial Decisions (Book Review)

lazy brain_t

Behavioral psychology is uncovering many common mental lapses and offers new ideas for improving decision making in light of these heuristics.

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The 24/7 Financial News Media Machine

Financial Noise

“Here are a few of the things we’re worried about – and the ways in which our firm is preparing for them.”

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Recent Market Advances Fail to Overcome Mental Accounting

satisfactionsanp500_t

The S&P 500 has nearly doubled in the last four years. Yet many investors are left feeling more disillusioned with their investments than ever before. Some of this discontent can be combated by understanding the psychological effects of market volatility.

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Making Peace with your Money Past

money peace

Money plays such a personal role in our lives that most people learn early on to keep their financial affairs a secret. These shadows promote many different varieties of financial pathologies and distress.

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The Smart Money Philosophy of Doug Lennick

Roulette Wheel

Follow a philosophy so that there is always a smart place to get money

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Financially Savvy Kittens on the Definition of Success

BottomMeasurement_t

This kitten measures success from the bottom not the top. Be more like this kitten.

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Marshmallows and Investing?

marshmellows_t

Parents take note: Research on delayed gratification shows connections from children through adulthood.

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How are foreign stocks doing compared to stocks in the United States? Fall 2012

The United States of America

Sometimes the medium term trend seems to weigh more heavily in our minds than the long or short term trends.

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Suddenly Wealthy

Windfall

Studies show that onetime windfalls can actually impoverish you. They make you feel rich, which inevitably leads to overspending. But wealth is what you save, not what you spend.

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A grown-up discussion on income and wealth inequality in America

Girl with tongue

Most work toward equality of results impoverishes everyone.

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Stress Is Not Your Enemy

Cat On Mailbox

How often do you intentionally push yourself to discomfort? Do you think the best retirement is relaxing and recreating? Think again.

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Video: The Benefits of Having a Financial Advisor

David Marotta Video Green Background

If you want to get in shape and need push in the right direction, you hire a personal trainer. If you want advice and a push in the right direction to be in good financial shape, hire a financial advisor.

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Women are more afraid of becoming “bag ladies” than men

Bag Lady

Women are more afraid of becoming “bag ladies” than men, and it makes them approach investing and saving for retirement differently, assuming they have managed to tackle either of those chores.

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Countering Resistance

Castle With Moat

Client resistance is an inevitable part of the financial planning process. It’s a sign the advisor is doing his or her job.

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Radio: Grow Rich Slowly: The Four Secrets of an Automatic Millionaire

Marotta on the Radio

Listen to David John Marotta’s interview on growing rich slowly: the four secrets of an automatic millionaire

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Best Marketing for a Small Business

Search Engine Optimization

For a small business, marketing and advertising seeks an answer to the question “How will prospective customers find me?” Most small businesses would benefit from enhancing their website presence by blogging and social media connections.

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Economic Lessons from Farmville

Farmville

To interest me, a game must have a simple but thought-provoking premise that allows for deep strategy. I’d never played Farmville but decided to recently because the parent company, Zynga, is going public this Thursday, December 15, 2011.

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A Wealth of Satisfaction

Purple Grape Vine

True life planning begins when you realize you are unique. There will never be another you in the history of the universe. Your calling is yours alone. Understanding yourself is the first step in managing your financial affairs to support your life plan.

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Three Reasons to Give Thanks

praying hands tatoo_t

Here are three reasons to make time for thanksgiving during this national holiday weekend.

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Economic Lessons from “Settlers of Catan”

Catan

What makes Catan particularly interesting is that just producing the most resources is not sufficient to win the game. Knowing what mix of resources you need to meet your objectives is critical.

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Economic Lessons Learned from Chess

Chess Prodigy

I love strategy games. Many people dismiss games as a waste of time. But at their best they teach principles of cause and effect that we can use as paradigms for real life.

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Stop Telling Yourself These Three Financial Lies

Lemon Basket

Most of us rationalize why we can’t get our finances together right now. Many Americans prolong these excuses during their entire working careers. Here are three lies you must stop telling yourself in order to build a solid financial foundation.

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Test Before You Invest

$ Questions

Q: I am 53 years old and have never invested in the stock market. I have inherited $150,000 from a family member, and my son is recommending that I invest this money in the market. Do you agree?

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Video: The Four Deadly Sins of Investing

Marotta Youtube

In both good times and bad times, investing is really about managing your emotions. If you want to be an investor, you have to grow to understand not only the relationship between risk and return, but also your own reaction to it.

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Video: University Students and Credit Cards

Marotta Youtube

Every University student knows they should have a credit card. You have to have a second form of ID on many financial transactions. You have to have one to establish good credit. And, the more you use them, the more you will accrue bonus points toward cash, mileage credits and various “free gifts”. P.T. Barnum said, “There’s a sucker born every minute.” But it doesn’t have to be you.

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