Investment Risk

The Realities of Trying to Outperform Market Returns: What Investors Need to Know

Insights, Investing, Investment Risk

There are many approaches when it comes to investing. At one end of the spectrum is passive investing. Passive investors believe that because markets are basically efficient, it is extremely difficult to outperform the markets over time, especially after fees and costs are taken into account. Therefore, rather than try to beat the market, own the market. On the opposite end of the spectrum is active investing. Active investors believe that through research and analysis, they can identify what and when to buy and sell, and as a result, outperform the market.

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U.S. Debt Ceiling Debate: A Long-Term Investor’s Perspective

Economics, Investment Risk, Market Research, Planning Perspectives

The debt ceiling debate is dominating the headlines. In a nutshell, the debt ceiling is a limit that is set by the U.S. Congress on the total amount of debt that the Federal government is legally allowed to borrow.  Since the 1960’s, the debt ceiling has been raised a total of 78 times.   There have been…

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Market Landscape – Q2 2022

Economics, Insights, Investing, Investment Risk, Market Research, Market Update, Portfolio Management

With inflation and recession fears dominating headlines, both stocks and bonds continued their fall in the second quarter of 2022. At times, it useful to put short term market conditions in the context of longer market cycles.  If we go back to the January 1, 2009, we observe that the S&P 500 (with dividends reinvested)…

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US Stocks Continued to Dominate in 2021, but What Does That Mean for the Future?

Asset Allocation, Economics, Insights, Investing, Investment Risk, Market Research, Market Update, Portfolio Management

As the global pandemic extended into 2021, the markets continued the remarkable run that began the third week of March 2020. Since that time, US large company stocks, as measured by the S&P 500 Index, have more than doubled in value. For 2021, the broad US stock market generated a positive return of more than…

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Investing versus Speculating

Blog, Investing, Investment Risk, Portfolio Management

When it comes to determining how to allocate your savings, what is the difference between investing and speculating? Investing is characterized by: Productive capacity: An investment involves deploying capital in a company, property, or other entity that produces something of value. A stream of benefits: The value produced by an investment can ultimately be measured…

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What To Do About the Coming Inflation (or Deflation)

Blog, Economics, Investing, Investment Risk, Investor Behavior, Planning Perspectives, Portfolio Management

The annual change in the Consumer Price Index “CPI” exceeded more than 5% for the second month in a row, raising concern that we may be entering an inflationary period. How concerned should investors be? Before we get into that, we should begin with a short primer on what inflation is. Inflation refers to an…

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The 2020 Election and Your Investment Portfolio

Blog, Economics, Investing, Investment Risk, Investor Behavior, Planning Perspectives, Portfolio Management

With election time now getting closer, we are inundated with opinions and prognostications about not only who will win but what that victory will mean for the markets.  When you couple the uncertainties of the election with the other trials facing our country including, but not limited to, high unemployment, the economic and personal consequences…

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The Economy vs. The Market

Blog, Economics, Investing, Investment Risk, Market Research, Market Update, Portfolio Management

The terms “stock market” and “economy” are often used interchangeably, but they are not one in the same.  Perhaps this has never been more evident than over the past several months.  The state of the economy, according to most measures, is bleak, with economic activity contracting, an unemployment rate of more than 10%, and an…

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