With economic and market uncertainty on the mind of investors, gold prices have rallied from $450 to over $1,300 in the last 5 years. But, unlike most commodities, gold has no true economic value beyond niche products such as jewelry, therefore the driver in its price is what the next person is willing to pay [...]
Tag Archives: Investor Behavior
Going with the “Flows”
Source: J.P. Morgan Asset Management Tweet
2009 Net Fund Flows
Despite and impressive run in equities, $375 billion moved into bond funds, and $9 billion exited equity funds. Our concern is that investor behavior is once again the culprit and this inflow/outflow occurred after the equity pullback early in 2009 – causing this. Chart: J.P.Morgan Asset Management Tweet
Bubbles…Is Gold next?
The WSJ recently published a chart that we thought was worth examining, and then noting here. The chart draws an excellent comparison between the recent surge in gold prices to previous bubbles of the last decade, giving us a cautionary perspective for those pouring money into gold today: Tweet
The Power of an Investment Policy Statement
Before we can give appropriate investment advice, we work with our clients to construct a comprehensive Investment Policy Statement (IPS). Creating an Investment Policy Statement (FPA Press), by Norm Boone and Linda Lubitz Boone, spells out the purpose and benefits of using an Investment Policy Statement: Identifies specific client objectives, risk tolerance, and time horizon. [...]
20-year Annualized Returns by Asset Class
20-year period ending 12/31/08. S&P 500 Index = 8.4% Average Investor = 1.9% The culprit = Investor Behavior source J.P. Morgan Asset Management Tweet
Forecasting: Interest Rates and Market Changes
The function of economic forecasting is to make astrology look respectable. – John Kenneth Galbraith I’ve been in the forecasting business for 50 years, and I’m no better than I ever was, and nobody else is either. – Alan Greenspan And the cost of reacting to forecasts, stock market promoters and other financial [...]