Tag Archives | structured investing

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The Role of Bond Funds in a Portfolio

Bonds tend to have less risk than stocks, but at the cost of less return. However, a proper use of certain kinds of bonds may temper the risk of your overall portfolio using diversification. Most people concentrate on investments only from a focus on returns. Diversification is an important factor to consider too, and bonds […]

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rebalancing

Rebalancing benefits during retirement. Is that all?

Michael Kitces wrote an interesting article comparing “Decision Rules” vs. Rebalancing. He finds that rebalancing under a total return approach has essentially the same results using the “Safe Withdrawal Rate” (SWR) decision rules. I posted a blog a short time ago that compares the SWR approach to a Dynamic Updating approach. I have always maintained […]

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behavior

▶ Stock Market History: A Crash Course for Investors, Part 6 – YouTube

This Part’s message? Diversify and reasons why. When you broadly diversify you don’t have to chase returns because you recognize that different markets, and parts of markets, outperform or underperform in cycles over time. Broad diversification simply allows those different market cycles to wash around inside your portfolio. (Market Timing was in Part 4). After […]

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450px-NYSE-NYX

Forget Market Timing (Stock Market History: A “Crash” Course for Investors, Part 4)

Stock Market History: A Crash Course for Investors, Part 4 (on YouTube below) explains market timing briefly. Rather, “Buy (the market) and Hold” that basket of securities goes beyond the buy and hope that most investors do. A market approach is done through an indexed based approach. An indexed based approach gathers the market and wealth effect […]

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How are medical and financial decisions similar?

My syndicated article through Advice IQ below shows the similarities between making medical decisions and making financial decisions. Most people believe that medicine is pat … yet when you think about it Doctors always discuss risks and benefits. Many medical procedures are not guaranteed. You need to make decisions, and how you decide effects your […]

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patterns

“Why evolution has made us bad investors”

We evolved looking for patterns to survive. But the modern brain doesn’t distinguish between patterns and simple random stuff. By SensibleInvesting.tv* : “Financial author and theorist William Bernstein on why humans just aren’t cut out to be good investors. Our emotions and instincts are invaluable if we are faced with a fierce tiger, but not […]

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gold

Do you really own the Gold you think you own?

There is only so much gold in the world. Wikipedia states all the gold in the world would fit into a 20.4 meter cube. There are many uses for gold: monetary exchange, investment, jewelry, electronics are the first that come to mind (but did you know medicine, food and drink have also used the metal)? […]

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Cracks in the Crystal Ball

Cracks in the Crystal Ball

People tend to think that predicting the markets is possible … even though they realize that predicting anything else is not.     Prediction Addiction Related to the below topic on how we remember PAST events … is our tendency to want to make predictions about FUTURE events. Nobody, least of all me, can know the […]

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Panic

Cycle of Market Emotions

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 mountain lions (fear) right in front of us in our yard, happen when we look at our investments.   We forget the big picture though. So … here it is: Cycle of […]

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Your thinking still stuck in 2008?

The vividness of the 2008 crisis is still influencing investors’ decisions today, likely to the detriment of their portfolios, says Santa Clara University finance professor Meir Statman. Listen and learn about fear, income, capital (investments), how people think money and pots of money, and diversification. His point about Emerging Markets where economies do not necessarily predict stock […]

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