More Money Is Lost Waiting for Corrections Than in Them

We have data for 91 calendar years (or 1,092 months) of U.S. investment returns over the period 1927 through 2016. The average monthly return to the S&P 500 has been 0.95%, and the average quarterly return was 3.0%. With that background, here’s a short, four-question quiz: If we remove the returns from the best 91 […]

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Topics: Advice, Investing, Investment Strategy

Vanguard Debunks Dividend Myth

Dividend strategies have drawn increasing interest from investors around the world as central banks have pursued both quantitative and qualitative easy monetary policies, keeping interest rates at what have been exceptionally low levels since 2008. But this preference isn’t entirely new; it has long been known many investors have a preference for cash dividends. From […]

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Topics: Investment Strategy

A Little Known Investment That Pays Big Dividends

Dan Solin on the power of giving. Read the Article By clicking on any of the links, you acknowledge that they are solely for your convenience, and do not necessarily imply any affiliations, sponsorships, endorsements or representations whatsoever by us regarding third-party Web sites. We are not responsible for the content, availability or privacy policies […]

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Topics: Advice, Investing

Understanding Different Types of Risks

Harry Markowitz received the Nobel Prize in Economic Sciences in 1990 for his contributions to the body of work known as “modern portfolio theory.” Probably his greatest contribution was to turn the focus away from analyzing the risk and expected return of individual investments to considering how its addition impacts the risk and expected return […]

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Topics: Advice, Investing, Market Insights

Active Management Falls Short With Bonds, Too

In a July 2017 Q&A with WealthManagement.com, Western Asset Management CIO Ken Leech asserts that passive investing is unlikely to play as large a role in fixed income as it does now in equities because active managers outperform their benchmarks much more in the bond market than they do in the stock market. While the trend toward […]

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Topics: Advice, Investing, Market Insights

Valuations and the CAPE 10: A Metric in Dire Need of Context

With the Shiller CAPE 10 near 30 (29.7 as I write this), it’s likely you have been reading articles that quote gurus who claim the market is on its last legs/breath due to excessive valuations. And the amount of calls I’m getting from concerned investors (especially, it seems, those who hold a certain set of political beliefs) has […]

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Topics: Advice, Investing

Annuities…The Good, the Bad and the Ugly

Too often, I’ve heard this all-too-familiar story. A client brings in an annuity policy to review, either for themselves or a family member. They bought it to create a steady annual flow of income on later life, as insurance against unexpected longevity. But what we see is a jaw-dropping set of numbers that reveal poor […]

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Topics: Advice, Investing

An Integrated Investment Plan Is Key

Earlier this week, we looked at the importance of incorporating different types of risk—specifically, human capital risk—into an overall financial plan. Today I will focus on mortality and longevity risk, and using “tax alpha” strategies to improve the odds of achieving your financial goals. Mortality Risk For those families whose human capital makes up a substantial […]

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Topics: Investing, Investment Strategy

Europe’s SPIVA Results Are Nothing New

Earlier this week, I provided some highlights of from the S&P Dow Jones Indices Versus Active (SPIVA) 2016 U.S. Scorecard. Today we’ll look at the SPIVA Europe Scorecard, which compares the performance of actively managed equity funds to their appropriate index benchmarks. The year-end 2016 Scorecard provides us with 10-year data. While not surprising to those familiar […]

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Topics: Advice, Investing, Market Insights