Jarrett Simpson, Wealth Advisor When the subject of Social Security comes up during retirement planning conversations, both younger and older investors often greet it with a healthy dose of cynicism. Such discussions tend to include comments like, “Oh yeah, sure. If there’s even anything left for me” or “Isn’t Social Security going bankrupt?” Sometimes I…
It was hard to miss the headlines about escalating trade tensions between the U.S. and China this week—and hard not to notice the up-and-down market activity that went along with it. But what, if any, long-term impact does trade policy have on the economy and, by extension, our portfolios? The BAM ALLIANCE’S Director of Investment…
May 2019 “I have found that the importance of having an investment philosophy—one that is robust and that you can stick with— cannot be overstated.” — David Booth The US stock market has delivered an average annual return of around 10% since 1926.[1] But short-term results may vary, and in any given period stock returns…
Prior to joining Buckingham Strategic Wealth, I worked with institutional clients educating them and supporting their use of indexes within their global equity portfolios. At the time, I was working with MSCI – the index giant – out of their Chicago and San Francisco offices. My clients included some of the largest public pensions in…
Ever since the Great Financial Crisis of 2007-2008, when the correlation of all risky assets rose toward 1, investors have been hearing that because of globalization, the world has become flat and the benefits of diversification are gone. The explanation is generally that the world market has become more integrated and financial markets more globalized….
Women face all the same issues that men face in retirement, plus they have additional complicating factors. Larry Swedroe and Katie Keary address these factors and offer tips to help even the scales. Find it on Kiplinger.com By clicking on any of the links above, you acknowledge that they are solely for your convenience, and…
Every year, the markets provide us with lessons on the prudent investment strategy. Many times, markets offer investors remedial courses, covering lessons it taught in previous years. That’s why one of my favorite sayings is that “there’s nothing new in investing, only investment history you don’t yet know.” 2018 supplied 11 important lessons. As you…
Every year, the markets provide us with lessons on the prudent investment strategy. Earlier this week, I covered lessons one through three. Today, I’ll tackle lessons four through seven. Lesson 4: Volatility doesn’t stay low forever. Your discipline will be tested. While the VIX’s long-term average has been about 20, we entered 2018 with the Volatility…
Every year, the markets provide us with lessons on the prudent investment strategy. I’ve so far covered what they taught us in 2018 in lessons one through three and then lessons four through seven. We’ll finish up today with lessons eight through 11. Lesson 8: Inflation wasn’t, and isn’t, inevitable. One of the most persistently asked questions I’ve…
There’s always something to worry about when it comes to the stock market, but panic selling all-too-often ends in disaster. That, Larry Swedroe writes, is why it’s so crucial for investors to have a prudent, well-thought-out financial plan in place. As the director of research for Buckingham Strategic Wealth and The BAM Alliance, whenever markets…
In a look at the historical data on stock returns following periods of negative performance, Jared Kizer explores why revisiting the market’s longer-term properties can help put last quarter’s volatility into broader context. From March 2009 through September 2018 — a period encompassing almost 10 years and the aftermath of the Great Financial Crisis —…
Given their long underperformance relative to U.S. stocks, some investors may be questioning whether it makes sense to own international equities. Jared Kizer looks at five reasons why you should remain committed to a globally diversified approach. Since the financial crisis of 2008, U.S. equities have earned substantially higher returns than international equities. Ken French’s…
New report, same old story. Larry Swedroe unpacks highlights from the most recent SPIVA scorecard that offer still more powerful evidence of active management’s continued failure to persistently outperform. Since 2002, S&P Dow Jones Indices has published its biannual Indices Versus Active (SPIVA) reports, which compare the performance of actively managed equity funds to their appropriate index…
Some active mutual funds have prospectus benchmarks that understate risk and, thus, overstate relative performance. Larry Swedroe unpacks a study that explores how such funds benefit from that overstatement at investors’ expense. Evaluating the performance of actively managed mutual funds generally involves comparing a product’s results with some passive benchmark (the SEC requires that funds…
Why do investors choose to keep playing the loser’s game? Larry Swedroe offers some explanations of his own, then unpacks a study that suggests a form of the conjunction fallacy has a role in active management’s survival. The opening chapter of my first book, “The Only Guide to a Winning Investment Strategy You’ll Ever Need,”…
Whatever your views of the candidates on the ballot next week, given the length and pervasiveness of election coverage this cycle, it’s natural to have a sense of uncertainty regarding how the outcome of the election will affect your life and, in particular, your financial plan. In times like these, when the “stomach acid test”…
