Asset Allocation Factors: Time and Emotion
When we meet with a new client, one of our tasks is to determine an appropriate asset allocation for the funds they invest. At a very basic level, the question we are trying to answer is “what percentage of the investment portfolio will be comprised of equities (stocks), and what percentage will be fixed-income (bonds)?” […]
Asset Allocation Factors: Time and Emotion
When we meet with a new client, one of our tasks is to determine an appropriate asset allocation for the funds they invest. At a very basic level, the question we are trying to answer is “what percentage of the investment portfolio will be comprised of equities (stocks), and what percentage will be fixed-income (bonds)?” […]
Some Perspective on the Fed’s Latest Meeting
Key Takeaways With ongoing inflationary pressures and a continued decline in the unemployment rate, the Fed appears ready to pick up the pace of normalizing monetary policy. The Fed confirmed that at this point they plan to raise the fed funds rate at the March meeting but reiterated that the pace and frequency of rate […]
Behavioral Finance and Asset Allocation
Summary Points: An emotional investor is very likely to make poor decisions over his or her financial life. Various experts (DALBAR, American College, etc.) have done in-depth studies to measure exactly how investor returns have lagged overall market performance. Measuring this behavior over an extended period for an “average investor” has proven difficult. The exact […]
Robinhood and a New Generation of Investors
Warren Buffett is one of the most famously successful investors of all time and his firm, Berkshire Hathaway, trades today near its all-time high, closing Friday at $433,124/share. Mr. Buffett has stated that he does not intend to split these original A shares as they attract like-minded, long-term investors. However, Berkshire did issue B shares […]
