Private Wealth Management Insights

“Sixty Percent Of The Time, It Works Every Time”

You may recognize the quote in the title from the movie Anchorman. This can be a lot like stock pickers, pundits, and TV personalities. You should run from anyone who is using prediction for the basis of advice.

The Smartest Person in the World Can Still Be a Terrible Investor

Have you ever felt intimidated by the markets? Thought that investing was only for brilliant people?  Maybe you hear jargon like “beta,” “derivatives,” or “standard deviation,” and it just goes over your head? Contrary to what you may think, you can be the smartest person in the world and still be a terrible investor.

Is Relying On Stock Markets For Economic Signals A Mistake?

If we had signals that told us with certainty what direction the economy was headed, we might have an edge in our investment strategy; we would know when it was a good time to invest when to proceed with caution or put the brakes on.

How Many Clients Does Your Advisor Work With?

How Barron's Top 1,200 financial advisors effectively serve 521 clients? We have clients from these firms coming to our firm every month looking for a better solution.

More Conflicts At Big Brokerage Firms

Did you ever wonder how a financial advisor makes their investment recommendations?  There are thousands of mutual funds on the market today.  How does he/she pick one over the other?  If your advisor works for a big brokerage firm like Morgan Stanley or Merrill Lynch, some of the decision-making is taken out of his/her hands.

How Long Does It Take To Say For Certain Your Investment Manager’s Performance Isn’t Just Luck?

I find it interesting that consultants and advisors in our industry tend to talk about a manager's skill after a period of outperformance.  After several years of outperformance, consultants conclude that this manager is not merely lucky but skillful.

The Dirty Little Secret About Index Funds

If you read this blog regularly, you know that we advocate a passive, low-cost, diversified investment portfolio.  Most people equate that to index funds.  For the majority of investors, index funds are a great alternative to their actively managed counterparts.

Stock Market Predictions Are Worthless

I am not sure what our fascination with predictions is all about.  Whether it is political elections, sports, or the financial markets, everyone seems to be willing to stop and listen to someone willing to make a prediction.  Rarely do we ever go back to evaluate how those predictions pan out?

Invest Like Norway, Not Yale

David Swenson, the chief investment officer of the Yale endowment fund, has gained notoriety over the past several decades to manage the Yale endowment fund.  In the early 1990s, he decided to place a gigantic chunk of the endowment into alternative assets like real estate, hedge funds, and private equity.  The results were spectacular.