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 […]
Uncategorized
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 […]
ETF Trading Basics
Now that our ETF is out we have been getting a lot of questions about how to trade ETFs. Here are some basic guidelines:1. Volume has nothing […]