If you earn a state pension or live in a state that has a shortfall in their pension then you need to pay attention to pension obligation bonds. Borrowing to Replenish Depleted PensionsThe idea is that a state issues bonds, borrowing money from bondholders, and invests the bonds […]
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Targeting Portfolio Volatility
Volatility is an important factor in designing portfolios for clients. First off, volatility tends to be negatively correlated with returns, meaning when volatility of an asset increases returns tend to decrease. Second, volatility can hamper the “investor experience”. We have talked about the idea of […]
The Biggest Mistake Investors and Advisers Make
Study after study of the money managers who have had the best long term performance shows the same thing—-while the money managers made a lot of money over time, the average client lost money. This isn’t some sort of Ponzi scheme, it is because investors […]
Avoiding Momentum Head Fakes
Momentum is an extremely powerful investment strategy. The basic idea is that objects that are in motion tend to stay in motion—when stocks are strong they tend to stay strong, when bonds are strong they tend to stay strong, etc. Momentum investing is based on individual […]