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The Three Key Benefits of Sound Investment Management Advice

Key Points

  • A financial advisor can help with crafting an investment plan that is suited to your goals, needs, and risk tolerance.
  • A Strategic Model Portfolio can then be implemented to meet your investment objectives.
  • Sound investment management that includes Portfolio Construction, Wealth Management, and Behavioral Coaching can provide tangible long-term benefit.

Continue reading → The Three Key Benefits of Sound Investment Management Advice

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Beware: This Strategy Could Cause You To Lose Your Shirt.

The World’s Most Expensive Hobby (Part 2)

Key Points

  • Investing is all about finding a balance that works for the long run.
  • Loss aversion can lead to underinvestment, but overconfidence can lead to concentrated bets, and as we’ll explore in this post, overtrading.
  • According to the research of Barber and Odean, overtrading can cost investors about 7% a year in returns on average. Yikes!

Continue reading → Beware: This Strategy Could Cause You To Lose Your Shirt.

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Behavioral Finance 101 (Part 6)

Key Points

  • Overconfidence and loss aversion can both lead to poor investment performance.
  • Overconfident investors tend to hold overly concentrated investment portfolios, which can increase idiosyncratic risk, and overall risk of loss.
  • Loss aversion can lead to under-participation in the markets, such as by going to cash when the markets begin to falter. This too can degrade investment returns over time.

Continue reading → Behavioral Finance 101 (Part 6)