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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16 Sep

Should the Fed Raise Interest Rates This Year?

September 16, 2015Printer-Friendly VersionThe Federal Reserve concludes its two-day meeting on Thursday and will announce whether or not they plan to raise interest rates, specifically the Federal Funds Rate. The Fed has kept the Federal Funds Rate at zero since 2008 and hasn’t raised the rate in over a decade. Since discontinuing its Quantitative Easing (QE) program in October of 2014, the market has been obsessed with when the Fed starts to raise interest rates. This obsession makes sense as the Fed has used “forward guidance” as another monetary policy tool in recent years. However, I believe the first increase in interest rates…

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22 Aug

Risk vs. Volatility

Posted by hancockp Categories: Markets Stock Market Investing Bonds Risk Volatility s&P 500

August 21, 2015Printer-Friendly VersionAs an avid reader and follower of global financial markets, it’s very rare a day goes by that I don’t observe what transpires in markets. I am fascinated by the ebbs and flows of data, information, economies and markets. Learning new ideas challenges my mind and hopefully improves my ability to manage portfolios.One thing I have learned over the years is that there is a lot of noise in financial markets. It’s this noise that can easily throw investors off a long-term financial plan. Case in point is what happened today in global financial market…

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24 Jun

Estate Planning For Everyone

June 24, 2015 Printer-Friendly Version A common misconception is that the term “Estate Planning” is only reserved for the wealthy or the “1%-ers”. However, everyone should have a plan for their estate because everyone will eventually have an estate for someone to manage. There are a few essential documents that everyone should have in their estate plan. In many cases, these documents are easy to prepare and rather in-expensive. Will The Last Will & Testament is the most common document used by individuals to pass property and assets upon death. You’ll designate beneficiaries and appoint an executor to carry out your legal and financ…

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28 Apr

Negative Interest Rates

April 28, 2015Printer-Friendly VersionImagine the following scenario: You wake up one morning and decide it’s time to open a new bank account. You gather your personal information, head to your local bank and sit down with a banker. You: “I would like to open a new bank account.”Banker: “Sure, what type of account are you interested in?”You: “Well, I’m not sure, what are your interest rates?”Banker: “Our current interest rate is negative 0.50%.”You: “Come again?”Banker: “Negative 0.50%.”You: “So, if I deposit $50,000, it will cost me $250 per year?”Banker: “Yes, but you could invest in our 2-yr CD. We have a new special rate…

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