International Investing is Harder to Sell

It’s becoming harder and harder to convince families and corporate clients that international diversification is good for them. 

Back in 2013

It’s completely understandable. US stocks have done far better over the last 6 years. I wrote about this back in 2013 when I first sensed investor frustration that their professionally constructed portfolios were under-performing the S&P 500 (which is almost all Large US companies).

3 More Years Have Passed

Three ...

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The Dow vs. Another Index

The Dow Jones Industrial Average is not behaving like the other market indexes today. The reason is IBM.

Interestingly, I have another post that deals with precisely this issue and how it can occur, especially because of IBM.

Here is a link to that post: The Dow, IBM and Benchmarking

I think it is worth a read because having a good understanding of indexing can help calm a lot of stress and also ...

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Do Higher Interest Rates Mean Better Return?

Many investors are frustrated with low interest rates, but the actual (real) return is not as bad as they think.

We’ve all heard the complaints. Interest rates are at historic lows, which frustrates many investors that want income, especially from low risk investments such as CD’s, money market funds or high grade bonds.

Interest rates on low risk investments have been near zero for several years now. Many investors are remembering the old days when government bonds and bank ...

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Do Inheritors Need to Beat the Market?

“Beating the market” shouldn’t be anyone’s investment goal, and this especially applies to families that have inherited investment portfolios.

Oddly enough, most of the investment industry and investing public is fixated on the idea of “beating the market.” For too many investors, that ends up being the point of it all. Why? I’m not entirely sure, but I think it has a lot to do with trying to make the client feel like they are “winning” the game. If ...

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Has the Stock Market Ever NOT Been Rigged?

Is the stock market rigged? This could have been the headline for the last 400 years – possibly longer – depending on when you claim the stock market “started.”

It seems like every week the media “uncovers” that the market is rigged. Some of the coverage is thoughtful, and some is not.

Today the focus is on high frequency trading. ...

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The Golden Ticket Trap

One of the toughest realities for investors to face is that it does not pay to try to get rich with one good pick.

The temptation to attempt this is strong and understandable. We can always look back into the past and say, “If I had only just bought ______.”

It can feel like the costs to try to buy the next big winner are small – much like the costs for a lottery ticket are small compared to ...

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Gone Fishin’ Portfolio Posts Incorrect 2013 Numbers

In a previous post I speculated as to how the Gone Fishin’ Portfolio guys would react given how poorly their portfolio did in 2013.

I notice on their home page they now have a long explanation about asset allocation, diversification, etc, which is about half correct and half wrong. This is one of my major problems with them. They mix in deceptive principles like survivorhsip bias along with solid principles like diversification.

But more curious to me is that ...

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Gone Fishin Portfolio – Doing it Live

Live investing is completely different from casual investment theorizing.

Yesterday I noted that the “Gone Fishin’ Portfolio” underperformed the S&P 500 by 21.48% in 2013.

What about longer term numbers?

Here are the 3 year returns:

Gone Fishin’ Portfolio     6.88%

S&P 500                             16.18%

Difference                        -9.30% per year

And 5 year returns:

Gone ...

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