Blog

Markets Reward Long Term Investors….Most Stock Don’t!

June 15, 2017
With permission I have copied a recent blog from  J. William G. Chettle, Vice President, Loring Ward discussing the rewards of long term investing. There are some great tidbits of information in this short article. Our passionate belief is long term asset-class investing gives you the best chance of becoming a successful investor.  The benefits are overwhelmingly positive. Asset class investing eliminates stock picking and market timing from your investment strategy. It keeps investment costs low and allows you to focus on what's really important to you in life rather than scouring the market for next best thing or always…

FinTech

May 26, 2017
What Can You Expect in the Future From Financial Technology?         In today’s day and age it seems as if the role of technology in daily life is increasing at an astounding pace. Studies suggest that the exponential growth rates that we have observed over the last decades seem to promise more exciting technological advances in the future[1]. Automation, connectivity, and efficiency have all been common attributes of this technological revolution, and it seems as if there are mixed feelings amongst the masses towards this change. On one side you have people who dislike the change, who…

The Incredible Shrinking Time Horizon!

June 15, 2016
What's your Investing Time Horizon?   I had an interesting conversation with a client today regarding their "time horizon" for investing. What was so interesting was the client's idea of what an "investing time horizon" is compared to my definition. This really got me thinking more critically about this question in an effort to coach the client in choosing the correct portfolio for their individual situation. https://youtu.be/jEKBl-kXOCM To understand this more completely a little background may be helpful here.  The client is single, age 63 and plans on retiring at age 65. Like most folks, my client would like to…

The Vortex of Returns & Why It’s Important

April 21, 2016
"The Best Defense is a Good Offense"- Jack Dempsey Setting Rational Expectations of Portfolio Performance Do you know engineers design skyscrapers with the knowledge that there will be some movement in the wind? Skyscrapers can actually move upwards of 2 1/2 feet during strong winds. If they were perfectly rigid structures with no movement at all they would snap with catastrophic results. Would you say the engineers have a reasonable expectation of wind movement entering into the design phase, long before they build the structure?  Absolutely they do! And this expectation of movement is not only reasonable,  it's rational. So…

After The Crash!

December 14, 2015
“The investor’s chief problem – and even his worst enemy – is likely to be himself.” -Benjamin Graham “The Intelligent Investor”. How do you respond when the market takes a nosedive? A better question may be how do you feel when the market takes a nosedive? Do you "feel" anxious, remorseful, fearful, panic-ridden? If you feel any of these emotions you’re not alone. These emotions, I believe, are the common state of the average investor. And, as Benjamin Graham quoted above, are likely to be the average investor's chief problem and worst enemy. How do we know this is the…

Efficient Market Theory Explained in a Nutshell!

September 10, 2015
There’s not a day that goes by where a so-called “expert” goes onto national television and spouts some lofty and usually outrageous prediction about where the market is heading or what stocks to buy or sell in your portfolio.   Typically these folks work for the active management industry as an analyst, portfolio manager, CEO, or in some other capacity. Sometimes they are so enamored with themselves and their self-proclaimed expertise that they even write a book touting their predictions. By the way, it’s not by accident that these predictions typically forecast “Armageddon” in the markets. After all, that’s what…

The Magic Number of 3 When it Comes to Your Retirement….part 2!

June 9, 2015
In part 1 of "The Magic Number of 3 When It Comes to Your Retirement" we discussed how devastating the actions of stock picking, market timing, and track record investing can be to your investment results. Let's assume you have taken that advice to heart and have since built a globally diversified portfolio adjusted for your personal risk preference and have put in place a rebalancing strategy to grow your wealth overtime.  This is commonly called the accumulation phase of planning and is part 1 of the 3 phases of retirement planning.  The other two are preservation and distribution. Preservation…

The Magic Number of 3 When it Comes to Your Retirement!

March 31, 2015
Does the number 3 have magical powers?   When I was a kid I always had a ritual on Saturdays mornings.  I would usually wake up before my two older sisters,  so I would have the TV all to myself. I would typically grab the largest bowl I could find and fill it to the brim with my favorite cereal at the time, Captain Crunch, pour in the milk and plop in front of the TV for Saturday morning cartoons.  Those who grew up in the 70’s most likely remember Schoolhouse Rock, the animated musical series that was entertaining and…

Is Wall Street Gas-lighting the little guy?

December 16, 2014
Gaslighting or gas-lighting; an increasing frequency of systematically withholding factual information from, and/or providing false information to, the victim - having the gradual effect of making them anxious, confused, and less able to trust their own memory and perception. ref. urban dictionary. Is Wall Street gas-lighting the little guy? Reading the above definition may make you question whether this plays out on a daily basis within the close confines of that eight block section between Broadway and South Street in lower Manhattan known as Wall Street. Could they possibly be systematically withholding factual information and/or possibly be providing false information to the general investor, therefore…

The Myth of Stock Picking

November 23, 2014
The definition of a myth is a story made up to explain a phenomenon beyond the science of the day. Have you ever thought about the myths that have been propagated throughout society for centuries? Famous myths like “The world is flat and you can sail off the edge!” How many of you believe in that myth? In today’s world, I hope not many but centuries ago this was a widely held belief. How about the popular myth that humans and dinosaurs inhabited the earth at the same time? I think most people may still believe this as the case…

Why Rebalancing Your Portfolio Makes Sense!

October 31, 2014
Why should I rebalance my portfolio and how often should I do it?   "Gambling: The sure way of getting nothing from something."

-Wilson Mizner.   You may say that’s a strange way to start an article about rebalancing your portfolio. After all what does gambling have to do with rebalancing? Surprisingly, it has a lot to do with rebalancing and in my opinion, rebalancing is the antithesis of gambling with your investments.   In this article I am going to explain why it is crucial for you to rebalance your portfolio, what is rebalancing, how often you should rebalance, and…