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

SPIVA Survey Continues Passive Winning Streak

Since 2002, S&P Dow Jones Indices has published its S&P Indices Versus Active (SPIVA) Scorecards, which compare the performance of actively managed equity funds to their appropriate index benchmarks. For the first time, the year-end 2016 U.S. Scorecard includes 15 years of data. The longer time horizon provides us with a more complete measure of the effectiveness […]

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Topics: Advice, Investing

Political Biases Can Impact Your Investing

“It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it […]

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Topics: Advice, Investing, Investor Behavior

Don’t Be Distracted By Gold’s Glitter

Perhaps fueled by the election of Donald Trump, once again we are hearing and reading stories about investors flocking to gold as both a safe haven and an inflation hedge. I’ve also noted an increase in the number of commercials promoting gold as a way to protect the value of your investments. With that in […]

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Topics: Advice, Investing