The Price You Pay Matters In our last piece, we described our marvelous markets, and how to account for their being both robust and random at the same time. Today, we’ll look at how stock pricing works, and why Nobel laureate William F. Sharpe was correct when he reminded us: “Asset prices are not determined […]
Even though we know it was just dumb luck, can we get a round of applause for seeming to forecast last month’s surprisingly strong market returns? It’s almost (but not really) as if the market were reading our mind when three broad U.S. stock indexes ended July 2022 with their best returns since 2020—up 9.1%, […]
After taking a closer look at interest rates in part 1 and inflation in part 2, we come to the heart of the matter: When interest rates, inflation, or both are on the rise, what’s an investor to do? Big picture, we are continuing to deploy the same core principles we use to help people […]
Have you been reading the daily headlines—watching markets stall, recover, and dip once again? If so, you may be wondering whether there’s anything you can do to avoid motion sickness. If you already have a well-structured, globally diversified portfolio tailored for your goals and risk tolerances, our answer remains the same as ever: Your best […]
In our last piece, we covered fund management costs. Next, let’s take a step back from the mutual funds, ETFs, or other holdings you decide to invest in. Where do these holdings live—and what does it cost to buy, sell, and hold them? An Account of Your Accounts First, let’s define a few terms: Investment […]
What are your investments really costing you? If you’re not sure, you’re not alone. It’s not like you’re handed a menu of charges to choose from when it’s time to place your order. Even when you know where to look for investment costs, the information can be difficult to digest. Let’s fill in some of […]
“You can outsource expertise but never your understanding, especially when it comes to your finances.” — Ben Carlson, “Don’t Fall For It” As we covered in the most recent installment in our “How To Be Positively Skeptical” series, there are only so many hours in the day to do all the fact-checking you’d like to […]
“All media shares one thing: Someone created it. And it was created for a reason. Understanding that reason is the basis of media literacy.” — Common Sense Media In previous installments of our “How To Be Positively Skeptical” series, we covered the many forces that tease us into falling for misinformation. Bottom line, our brains […]
“[T]he challenge for all investors is to consume the news without being consumed by it.” — Jason Zweig In a recent post, we introduced our multipart series on the importance of separating fact from fiction – as an investor, as well as in your everyday life. Today, let’s talk about your emotional reaction to unfolding […]
“I’m not an optimist. That makes me sound naïve. I’m a very serious ‘possibilist.’ That’s something I made up. It means someone who neither hopes without reason, nor fears without reason, someone who constantly resists the overdramatic worldview.” — Hans Rosling, Factfulness Whether you’re considering an investment opportunity or simply browsing various media for insights […]