Category - Investing

1
Growth Funds Should Be Part of Your Portfolio
2
We Now Return You to Your Regularly Scheduled Update on the Economy and Markets …
3
The ABCs of Behavioral Biases (S–Z)
4
The ABCs of Behavioral Biases (O–R)
5
“It’s Greek to Me!” – Understanding the Meat in Your Investment Statements

Growth Funds Should Be Part of Your Portfolio

I’ve had some great conversations with clients recently and wish to take this time to explain a bit about growth stocks. In particular growth mutual funds.

 “Send your grain overseas, for after many days you will get a return. Divide your merchandise among seven or even eight investments, for you do not know what calamity may happen on earth.” Ecclesiastes 11:1-2

U.S. growth stocks are certainly one of the seven or eight investments I usually recommend all clients have in their portfolios. By definition, growth stocks make up about half of the S&P 500 index. In fact, about half …

Read More

We Now Return You to Your Regularly Scheduled Update on the Economy and Markets …

THURS, NOV 2nd, 2017

The U.S. economy continues down its years-long path of expansion. Despite the endless cacophony of hoopla and noise from the new regime in Washington D.C. the track of growth has neither picked up nor dissipated. Our broad assessment infers that the bedrock of the economy – e.g., jobs, sentiment, private sector balance sheets, and aggregate demand – is healthy. Meanwhile lawmakers have been in a state of gridlock for the majority of the year. Taken together, a measured and stable economy with little in the way of dramatic new policies from the Beltway is a celebrated …

Read More

The ABCs of Behavioral Biases (S–Z)

We’re coming in for a landing on our alphabetic run-down of behavioral biases. Today, we’ll present the final line-up: sunk cost fallacy and tracking error regret.

Sunk Cost Fallacy

What is it? Sunk cost fallacy makes it harder for us to lose something when we also face losing the time, energy or money we’ve already put into it. In “Why Smart People Make Big Money Mistakes,” Gary Belsky and Thomas Gilovich describe: “[Sunk cost fallacy] is the primary reason most people would choose to risk traveling in a dangerous snowstorm if they had paid for a ticket to …

Read More

The ABCs of Behavioral Biases (O–R)

So many financial behavioral biases, so little time! Today, let’s take a few minutes to cover our next batch of biases: overconfidence, pattern recognition and recency. 

Overconfidence

What is it? No sooner do we recover from one debilitating bias, our brain can whipsaw us in an equal but opposite direction. For example, we’ve already seen how fear on the one hand and greed on the other can knock investors off course either way. Similarly, overconfidence is the flip side of loss aversion. Once we’ve got something, we don’t want to lose it and will overvalue it compared to its going …

Read More

“It’s Greek to Me!” – Understanding the Meat in Your Investment Statements

By Eve Kaplan, Certified Financial Planner™

When you look at your monthly investment statement, do you think “this looks like Greek to me”? Do you ignore all but the first page, after checking to see how much money you “made” or “lost” last month? If so, you’re in good company.  However, there’s a lot of meat in your investment statements so here’s a deep dive into some of the important elements:

  1. Don’t just compare changes in account value this month (vs. last month), be aware of sub-components that add or subtract value each month: e.g. “dividends and interest,” “market appreciation/depreciation”
Read More

Copyright 2014 FiGuide.com   About Us   Contact Us   Our Advisors       Login