There is no getting by our emotions at any time, especially when it comes to investing. The same brain chemicals and responses to kittens (friendly), or lions (fear) right in front of us, also happen when we look at our investments; good markets (friendly) and bad markets (fear). Add to fears of misbehaving markets, are recessions, inflation (or […]
Archive | Dimensional DFA
Happiness and investing? Can you do both?
The Happiness Equation, as it relates to investing, is an interrelationship between your perceptions and expectations of investing and events. How do you manage happiness when you can’t manage the markets or the events that influence the markets? The inserted article below explains. The happiness equation from Better Financial Education Note: Your […]
The Markets: Who Buys When People are Selling?
You may hear, when markets get “volatile,” that there are more sellers than buyers. Can that even happen? What does that phrase even mean? BTW, you hear it too in any market, including the real estate market. The article below, “A Question of Equilibrium,” explains the basics of how buyers and sellers always agree on […]
9 Key Questions as an investor to ask yourself
The time for reflection comes to all of us at one time or another. These are 9 key questions an investor should ask themselves. This is not an exhaustive list, rather one that gets to the meat of the matter. The questions and answers are timeless, applying all the time. What sort of competition do […]
Record highs (at anytime) means what exactly?
With stock indices continuing to set new highs, does this mean negative returns for stocks are on the horizon? If prices increasing over time was a troubling development, what would be the point of investing at all? You would think investors would realize there is no potential for future gain, and not invest. So why do […]
As Goes January, So Goes the Year?
As investors ring in the new year, some may see the occasional headline about the “January Indicator,” “January Barometer,” or “January Effect.” This theory suggests that the price movement of the S&P 500 during the month of January may signal whether that index will rise or fall during the remainder of the year. So every […]
What is the Frequency of Positive Returns?
People focus on returns, average returns, good or bad returns. Rather, progress isn’t made over short terms, but over the longer term. So how often have the markets been positive? The below article explains how to better view markets and how you should participate in them for healthier and wealthier outcomes. It illustrates how infrequent […]
Markets are always uncertain
Markets are always uncertain. Actually, as the article below states, markets aren’t uncertain … uncertainty is a human condition that is emotional and the markets simply reflect this emotion among the many other emotions market participants feel. I like to schedule posts in advance. You’ll notice the article below is dated May … when the […]
Your Complete Guide to Factor-Based Investing – Review
What are factors for investing? How are they determined? Why are they useful? Your Complete Guide to Factor-Based Investing: The Way Smart Money Invests Today Paperback – October 7, 2016 by Andrew L Berkin and Larry E Swedroe discusses this. What are factors? “A numerical characteristic or set of characteristics common across a broad set […]
The cost of indexing – and an approach how to reduce those costs
There is a cost to indexing that most investors are unaware of. It is called “reconstitution.” What is reconstitution and how may the costs involved be solved? What is an index? An index tracks changes in the markets – think of it kind of like a weather barometer. The first article below discusses how the reconstitution effect […]