Side Effects of the Stock Market May Include…
Pretty much everyone has experienced the agony of having their TV watching interrupted by the ubiquitous pharmaceutical advertisement. In fact, they have become so commonplace that an assortment of entertaining spoofs have been created, like this one. As the video above highlights, one of the memorable aspects for many of these medications is the absurdly…
Read MoreTax Time Sticker Shock
Imagine your client losing 20% of the value of their investment, yet receiving a capital gain distribution that’s also a double-digit percentage. Impossible you say? Well, for some mutual fund investors that is exactly the scenario they face as we approach the U.S. tax filing deadline. What lessons can we glean from 2022 and the…
Read MoreTrends With Benefits
Something that unites almost every asset manager that believes it uses a disciplined, repeatable investment process is our annoyance with performance chasing. The root of this frustration is how performance becomes a shiny object that can distract some investors, and even some financial advisors. It can be particularly difficult to look away from the shine…
Read MoreDid Your Retirement Bucket Spring a Leak in 2022?
Not 2008, not the early 1980s, but 2022 was the worst year for bonds on record, according to an analysis by investment historian Edward McQuarrie. That’s more than a headline for financial advisors who have relied on fixed income as the less-volatile portion of their 70/30 or 60/40 portfolios – especially for their retirement-age clients.…
Read MoreMarket Predictions – Why Bother?
Well, here we are again. It’s that time of year when many asset managers like to make predictions about the year ahead, while Blueprint Investment Partners calls attention to the foolishness of that exercise. As evidence, I give you this January 2022 tweet from Bloomberg media personality Jonathan Ferro, who recaps how 14 leading financial…
Read MoreWhy Buffett & Marks Are Trend Followers (Even If They Don’t Know It)
“When I see memos from Howard Marks in my mail, they’re the first thing I open and read.” Warren Buffett Few (if any) money managers are better than Howard Marks of Oaktree Capital, in our opinion. I mean, can you get a bigger endorsement than Warren Buffett’s quote above? If you are not familiar with…
Read MoreUgly Couple: Capital Gains & Negative Performance
Let’s face it. If you have clients with any level of exposure to traditional assets, such as stocks or bonds, 2022 has been unpleasant. Equities closed at all-time highs in 2021, then steadily declined in 2022. Bond investors have arguably had it worse, certainly on a risk-adjusted basis. Just when you think it can’t get…
Read MoreCan Retirement Income Be Modernized? A Guide for Financial Advisors.
Just one of these scenarios likely would be enough to cause concern for an investor: Yet in 2022, we’re facing all three at once. It’s a potentially catastrophic combination, especially for investors nearing or in the early years of retirement. In my opinion, this is a “perfect storm” (yes, I know that’s a super cliché…
Read MoreWhat The Data Says About Market Crashes
When we travel by air, my wife usually points out that she thinks it would be better if people by windows boarded first; that way, anyone in an aisle or middle seat wouldn’t have to keep standing up. Meanwhile, I think the Southwest Airlines style of pick-any-open-seat is optimal. Our gut feelings were recently rendered…
Read MoreStocks on Sale Or About to Go ‘On Final Clearance’?
During market drawdowns, you often hear financial services media types talking about stocks being on sale. This phrase has always irked me. I think it’s completely imprecise and utterly useless. Clichés may help sell airtime, but in my opinion they get you nowhere toward designing or implementing a comprehensive investment process. Instead of leaning on…
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