Blog

Hunkering Down in Turbulent Times – First Quarter 2020

“What the imagination can’t conjure, reality delivers with a shrug.” —Trumbo (movie voice-over) Brace yourself. Your First Quarter 2020 report is likely to leave you feeling at least a little disheartened. No matter how much we’ve written about preparing for perilous times like these, planning for it versus actually enduring it is like watching a…

IPOs: Profiles Are High. What About Returns? – Fourth Quarter 2019

Initial public offerings (IPOs) often attract initial public interest—especially when familiar brands become broadly available to investors for the first time. In recent months, investors have had the opportunity to buy shares of ride‑hailing networks Uber and Lyft, workplace productivity services Zoom and Slack, and other high-profile businesses ranging from Pinterest to Beyond Meat.

The Reality of Market Timing – Third Quarter 2019

Over the course of the holidays, it’s not unusual for the stock market to be a topic of conversation at parties and other social gatherings. A neighbor or relative might ask about which investments are good at the moment. The lure of getting in at the right time or avoiding the next downturn may tempt even disciplined, long-term investors. The reality of successfully timing markets, however, isn’t as straightforward as it sounds.

The Uncommon Average – Second Quarter 2019

The U.S. stock market has delivered an average annual return of around 10% since 1926. But short-term results generally vary, and in any given period stock returns can be positive, negative, or flat. When setting expectations, it’s helpful to see the range of outcomes experienced by investors historically. For example, how often have…

Blink Moments – First Quarter 2019

After a turbulent end to 2018 sent stock indices around the globe into bear-market territory, equities staged a big recovery in the first quarter of 2019. For the quarter, the S&P 500 index gained 13.65% and was within a few percentage points of its record high. The Russell 2000 small stock index gained even more…

Why Should You Diversify? – Fourth Quarter 2018

As 2019 begins, and with U.S. stocks outperforming non-U.S. stocks in recent years, some investors have again turned their attention towards the role that global diversification plays in their portfolios. For the five-year period ending October 31, 2018, the S&P 500 Index had an annualized return of 11.34% while…

Where’s the Value? – Third Quarter 2018

From 1928–2017 the value premium in the U.S. had a positive annualized return of approximately 3.5%. In seven of the last 10 calendar years, however, the value premium in the U.S. has been negative. This has prompted some investors to wonder if such an extended period of underperformance may be cause for…

E + R = O, a Formula for Success – Second Quarter 2018

Combining an enduring investment philosophy with a simple formula that helps maintain investment discipline can increase the odds of having a positive financial experience. “The important thing about an investment philosophy is that you have one you can stick with.” David Booth Founder and Executive Chairman…

Sailing with the Tides – First Quarter 2018

Embarking on a financial plan is like sailing around the world. The voyage won’t always go according to plan, and there’ll be rough seas. But the odds of reaching your destination increase greatly if you are prepared, flexible, patient, and well-advised. A mistake many inexperienced sailors make is not having a…

Recent Market Correction – Fourth Quarter 2017

After a period of relative calm in the markets, in recent days the increase in volatility in the stock market has resulted in renewed anxiety for many investors. From January 27 to February 8, the U.S. market (as measured by the S&P 500 Index) fell more than 10%, marking the first stock…