An Enduring Investment Philosophy
Combining an enduring investment philosophy with a simple formula that helps maintain investment discipline can increase the odds of having a positive financial experience. Investing is a long-term endeavor. Indeed, people will spend decades pursuing their financial goals. But being an investor can be complicated, challenging, frustrating, and sometimes frightening. This is why it is […]
Tariff Trepidation
One of the focal points following the presidential election is the potential for an increase in tariffs applied to goods produced outside the US. Many investors have wondered what this could mean for markets. One period offering perspective on this issue is President Trump’s first term in office. Beginning in 2017, the administration eyed China […]
1971: The Beginning of a New Way to Invest, Based on Science
I’d rather be an investor in 2024 than in 1971. Back then, investment options were limited, opaque, and expensive. Portfolios were based on predictions and often highly concentrated. Starting in the mid-1960s when computers became available, leading academics began developing and testing theories with stock market data. Within a short period of time, seminal research […]
Gold Hasn’t Been Effective at Tracking Inflation
Gold is sometimes touted as a tool for protecting wealth from rising prices. But history shows the challenges of using gold to offset the impact of inflation. Since 1970, gold has often experienced large price swings relative to annual inflation, as Exhibit 1 shows. An effective inflation-hedging tool should have return volatility that is more […]