Tag Archives: Investor Behavior
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:
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.
Explains the [...]
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
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 media commentators - leading to poor investor [...]
Two-Thirds Don’t Have a Financial Plan
Despite increasing pressure to slash debt and rebuild retirement funds, nearly two-thirds of consumers do not have a written financial plan, according to the 2009 National Consumer Survey on Personal Finance.
The survey, released today by the Certified Financial Planner Board of Standards, found that 64% of respondents do not have a written financial plan in [...]
Posted in Home Also tagged 529, asset allocation, College Savings, Diversify, Educational Planning, Financial Goals, Investments, Retirement Planning Comments closed
It’s All about Discipline
You don’t have to be a genius to be a successful investor. Warren Buffet once said, “Success in investing doesn’t correlate with IQ once you’re above the level of 25. Once you have ordinary intelligence, what you need is the temperament to control the urges that get other people into trouble in investing.” It’s true [...]
2009 Net Fund Flows