Last year reminded everyone that investing is hard. It can be uncomfortable and unpleasant. Market volatility can diminish willpower and cause determination to waver. The main risk is not portfolio declines. The real risk is that instincts override the discipline investors need to achieve their long-term plan.Read More
Today, a few clicks lets you buy stocks anywhere. With the world's stocks on every menu, investors' have collectively allocated capital according to the cartogram. Yet individually, investors greatly prefer domestic portfolios.Read More
This is yet more proof of the importance of diversification. Global events are too unpredictable (most experts were wrong on Brexit) to effectively jump in and out of the market. The answer isn't to try to avoid trouble. It is to diversify so you are never overexposed to the downside of one event.
The world runs on incentives. Often, the challenge in investing is to figure out how to entrust your money with people whose incentives are best aligned with your own.Read More
Advising clients during the Great Recession demonstrated what a powerful call-to-action pessimism is. Pessimism demands action – “Sell! Get out now!” In comparison, optimism – “Stay the Course” – sounds weak and oblivious to risks.Read More