12 Jan

5 AM Alarm

January 12, 2019Printer-Friendly VersionAs I have aged, it seems my alarm clock goes off earlier and earlier. As a child, I somewhat dreaded waking up early in the morning unless it involved golf or some other sporting activity. Early morning Bible studies were thrown in the mix as I entered college. I have many older mentors to thank for motivating me to get up early and study the Bible. As I started my career, an earlier wake-up was the norm. Of course, once kids came along, the alarm clock was somewhat useless as babies became the new alarm clock (which went…

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4 May

Perseverance in Down Markets

May 4, 2015Printer-Friendly VersionThe first Sunday in April is always one of my favorite days of the year as it typically marks the final round of The Masters Golf Tournament. This year, defending champion Jordan Spieth entered the final 9 holes of the golf tournament with a 5 shot lead. He had been flawless through 63 holes and it was almost a foregone conclusion that he would march through the final 9 holes and be the first back-to-back champion since Tiger Woods in 2001-2002. He bogeyed 10 and 11. Then he stepped to the tee of the famous 12th hole, a 155-yard par three, the middle hole…

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13 Jan

Shifting Sands

January 13, 2015Printer-Friendly VersionBaseball is a funny sport. Just when you thought you have seen everything, something happens in the course of a game that has never happened in the history of the sport. The same could be said for the stock market. Case in point was the first week of 2016. In the United States, the Dow dropped 6.1%, the S&P 500 6.0% and the Nasdaq 7.3% all in one week, making the decline the worst on record for the start of a year. U.S. markets were heavily impacted by a weak Chinese stock market and a devaluation of their currency. China has…

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13 Oct

Short-Termism

October 13, 2015Printer-Friendly VersionWhat does Vanguard’s CEO, a portfolio manager, and an economist have in common? They all agree investors focus way too much on the short-term. “Looking at investments in less than a 5 to 10 year window is time wasted. People should be thinking in 10-year increments around their portfolios because it’s really difficult to have any sense in the short-run what is going to happen.” Bill McNabb, Vanguard’s CEOShort-termism refers to an excessive focus on short-term results at the expense of long-term interests. How do you define “short-term” in investing? My argument has always been that any money you inte…

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22 May

Stock Market Returns & GDP Growth

Posted by hancockp Categories: Stock Market Economics GDP Emerging Markets IMF GMO

In my last article, I summarized the most recent World Economic Outlook from the IMF. In that report, IMF economists stated:The global recovery is expected to strengthen, led by advanced economies. Growth in emerging market and developing economies is expected to pick up only modestly.The gap between developed and emerging growth is expected to narrow, but for the most part, emerging economies are expected to have higher growth rates in the future. Some investors may infer that higher economic growth should translate to better equity market performance. There have been a number of studies on the correlation between…

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