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Tag Archives | diversification

Portfolio Performance More Than Beating the Market

Are your investment returns beating the market? That question isn’t as simple to answer as you might think. First of all, “the market” isn’t easy to define. You can compare your investment returns to the Dow Jones Industrial Average, but that index is made up of only 30 large companies. If your portfolio is properly […]

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Average Market Returns, A Winning Investment Strategy

When it comes to investing, it’s a losing proposition to try and be anything better than average. I was recently reminded of this important investing precept when I attended a presentation by Ken French, a noted professor of finance at Dartmouth College. If there’s no point in trying to beat the market through “active” investing, […]

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Consider Source of Dire Economic Predictions

“Sell Everything!” That’s the advice to investors from RBS, a large investment bank based in Scotland, which issued the dire recommendation to its customers on January 8. The warning urged investors to sell everything except high-quality bonds, predicting the global economy was in for a “fairly cataclysmic year ahead….similar to 2008.” They said this is […]

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Be Wary of Investment Guarantees

The prospective client interviewing me was nervous and skeptical. She insisted on some type of guarantee that, if she hired my firm to manage her investments held for retirement, we would make her money. I asked her what she meant by “make her money.” She said that her balance would never go down. “No, I […]

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When Doing Nothing is Investment Strategy

A few weeks ago, when the US markets started dropping dramatically, a reporter for The Wall Street Journal called. He asked me if I had received any calls from worried clients. I told him I had heard from 5% of my clients. “What changes in their portfolios are you making?” he asked. “I’m not making […]

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