In investing, correlation tells us how an asset or portfolio moves in relationship to another asset or portfolio on a scale of +1.0 to -1.0. For example, over the last ten years, investment grade bonds have had a correlation of -0.06 relative to U.S. stocks (S&P 500). Meaning, if U.S. stocks went up by 1.0%,[…]
Investing has never been easier. Today, there are more than 200 robo-advisors in the U.S. From platforms that invest “rounded up” purchase amounts on your behalf to applications that offer unlimited stock trading right from your phone. What was once reserved for only the rich is now accessible to everyone. But as the saying goes,[…]
In finance, the term “generational buying opportunity” (or GBO, for short) is used to describe when asset prices have dropped so dramatically that it’s highly unlikely one will ever see them that low again. Hence it happening “once in a generation.” For some investors, even whispering this term makes the tiny hairs on the back[…]
During an interview with a reporter last week, I was asked what I thought was the easiest investment concept to explain. It was a fantastic question that momentarily put me on my heels. I knew there was no single right answer, but I began racing for one while I ran downstairs to grab a cup[…]
While reading about Bitcoin’s most recent plunge, I stumbled across a blog post from Charlie Bilello titled “Big Winners and Big Drawdowns”. In it, Charlie examined the massive, stomach emptying drawdowns experienced by shareholders of Apple, Amazon, Microsoft and Alphabet at various times throughout the last two decades. I heard that Amazon’s -94% dot-com bubble drawdown[…]
They say socially responsible investing (SRI) and Millennials go together like participation and trophies. According to a 2018 Harvard Kennedy School study titled “Money, Millennials and Human Rights”, SRI is getting a boost from Gen Y’s demand to establish a greater link between their money and their values. This increased demand, coupled with an alleged[…]
Last week was a tough one for the markets, but any financial planner worth their fee knows that pull-backs, corrections and recessions are all part of the long game. However, even we planners are not completely absolved of the emotional impact market volatility can cause (we feel it too), but good planners are well disciplined[…]
Target-date funds is a phrase you may come across when looking at investment options in a 401(k), 403(b) or other type of defined contribution retirement plan. The media loves to talk about them as well. In fact, according to Morningstar, there is over $750 billion invested in target-date funds. But do you know what a[…]
I know this question isn’t probably top of mind for Millennials. Do you even know what “financial independence” means or looks like for you? Let me give you an idea. Financial independence is the new term for retirement because for many of us, it doesn’t mean playing bridge or golfing every day in sunny Florida.[…]
Remember the stock market crash of 2008? My bad for bringing up ugly memories, but, hey, it hit us all pretty hard. For many, the first thought was “Sell! Sell! Sell!” however if you had a good (and sane) financial advisor they probably told you this: Don’t panic! Our financial climate is constantly changing, and[…]