We spend a lot of time as investors trying to understand and mitigate risk.  Sometimes this can seem difficult as prices can move up and down drastically for seemingly no reason.  However, in studying the history of the stock market, we take for granted a lot of the risk that we no longer have to…

Read More

Before the election, I wrote a post talking about how the market didn’t react in predictable ways to the election of a president.  Despite all of the evidence, many investors and experts alike predicted a crash if Biden was elected.  The theory was that his policies of wanting to raise taxes and make it harder for…

Read More

In the course of about a year, we’ve gone from fears of the next great depression, to rumblings of asset class bubbles all around us.  So what is an investor to think?  Are we in a bubble?  To properly answer that, we need to look at where prices are, what’s fueled the rise, and what…

Read More

“If you torture the data long enough, it will confess to anything” – British Economist Ronald H. Coase In investing above maybe any other discipline, if you know where to look, you can find data on almost anything.  In general, this is a great thing; it allows us to be extremely informed on many fronts…

Read More

It’s not very often that a story about a hedge fund making a small bet against a thinly traded stock would become the biggest news story in the world, but we live in a new world where Reddit, Robinhood and Gamestop have dominated the news cycles over the last week.  So what in the heck…

Read More

So far in 2020, and really for the past few years, investing has seemed pretty easy.  Invest in the big, well-known companies that everyone has heard of and uses, and you outperform the rest of the market and probably most professional investors.  Historically, investors have realized a premium in terms of risk-adjusted outperformance by investing…

Read More

Generally this phrase is used in relation to the value of real estate, but it can have important implications for regular investment accounts as well.  Understanding how to efficiently utilize asset location strategies is the one freebie we have in investing.  What I mean by this is that is that investors can increase their wealth…

Read More

Understanding risk and knowing how to best control or mitigate it is probably the most important factor in creating and maintaining a successful investment plan.  It’s also one of the most misunderstood and ignored factors.    In most conversations I have had with investors related to risk, the concern is primarily related to a substantial…

Read More

As someone who manages investment portfolios for a living, one of the most common questions I get from friends, family, and random people sitting next to me on a plane is some variation of “so where do you think the market is headed?”  My usual response is to give the basic academic answer that the…

Read More

To say 2020 has been a crazy year is a massive understatement.  On Dec 31, 2019 the economy was doing well, the stock market was near all-time highs, and most people probably assumed the election would be far and away the biggest news cycle of the upcoming year.  Fast forward 8 months and we’re still…

Read More