Investments are at the core of what we do, and here is some commentary on various aspects of the financial markets.
It is difficult in investing theory to determine which narratives have the appropriate underlying evidence to support them and which narratives are not worth following. Often it is necessary to be both a mathematician and a skeptic to filter out what is even worth considering.
“I am no longer an advocate of elaborate techniques of security analysis in order to find superior value opportunities.”
A good narrative describes what happened in the past. And even though past earnings may have something to do with current share prices, they don’t have anything to do with future share prices.
Why do our portfolios systematically overweight healthcare stocks?
Beware of reading too much into three days of market movements.
On the surface it seems like option 3 (VHT) is the best deal. Is there anything I am missing?
Energy’s low correlation with nearly every other major asset class means even very conservative investors should consider over-weighting Energy stocks.
We allocate a portion of our managed portfolios to foreign stocks, and Hong Kong is the highest ranked country on the latest edition of the Index of Economic Freedom.
I receive dire predictions with such frequency that were I to act on even a fraction of them I would never be invested in the markets.
Return comes with an element of risk. There is no safe investment which also pays a good rate of return.
This Bear market is considered one of the greatest challenges to retirement planning.
Many advisors and most investors don’t really understand the math on how to compute investment returns.
Our minds are wired to quickly generalize on perceived trends and react to them.
Bear Markets are unpredictable, but there is no reason that they should be a cause of distress.
The future may be uncertain, but the markets are quite reliable in the long run.
The larger the spread, the more likely you should neither buy nor sell the asset.
Most investors think that whenever you buy or sell a security the money is immediately deducted or deposited into your account. This is not true.
Too much leverage is risky because it endangers meeting your goals.
Continually curating a list of low cost funds is valuable for long term investors.
“It is always a difficult experience for investors to stay in markets.”
“Historically there has been a wide variety of returns from US and International stocks, and when one does poorly often another does well.”
Index investing seeks to track the return of a portion of the market. The opposite is active management.
David John Marotta was interviewed on radio 1070 WINA’s Schilling Show discussing three big investing mistakes.
We don’t recommend high yield bonds because they do nothing good for your overall portfolio.
David John Marotta was interviewed on the Schilling Show discussing how the markets performed last year and lists 4 mistakes to avoid.
Gold sounds like it should provide a safe haven of your purchasing power much more than it has actually done so.
Taking inflation into account changes nearly everything about financial planning.
While volatility can make a fund more attractive on the way up, it can also make a fund less attractive on the way down.
The stock is more likely to go up than down, but how volatile are the markets really?
Here is a review of Marotta’s 2015 Vanguard Gone-Fishing Portfolio and a description of our changes for 2016.
Adding a little bit of Chile to your portfolio can boost returns and reduce volatility.
We do not recommend using stop loss orders. Now, it appears that the New York Stock Exchange agrees.
We’ve written about how to select securities but in this article we are going to apply those principles to the process of selecting a specific fund for a specific sector of the economy.
While many investors say they want a low-correlation portfolio, they don’t want to actually experience a low-correlation portfolio.
While Santa Claus usually brings something positive for the markets, it isn’t enough to worry about jumping in and out of your investments.
“Nothing has provided greater risk control over the long term than equities, which are historically without principal risk over 30-year periods…”
The Journal of Financial Planning featured a nice column by Harold Evensky entitled “These Innovative Research Papers Deserve Your Attention.”
October showed a sharp reversal of the movements of Resource Stocks.
Examining past Bear Markets can help provide some context when we experience the next one.
Here are seven sage investing lessons from the J. Paul Getty era.
The lessons of each bear market are visible with the wisdom of 20/20 hindsight.
For a calm investor, a crash will just mean that the stocks you would have bought anyway are temporarily on sale.
A crash is defined as an index dropping at least 50% from some previous high. Since 1950, there has been exactly 1 stock market crash in the S&P 500 Price Index.
When the market drops, resist the impulse to “do something.”
This year, almost every U.S. asset class is in the red except for growth stocks. When the market is throwing punches, you need a tactical defense.
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.
David John Marotta was interviewed on radio 1070 WINA’s Schilling Show discussing market volatility.
They are based on different indexes and have different expense ratios.
Every time the S&P 500 hits new highs everyone wonders if these new highs will stick.
How often did it pay to heed the star rating? Most of the time, with a few exceptions. Is there a better method to use?