Blog Posts

Large Caps Continue Positive Trend

Despite a 6 week long correction, large cap stocks continue to gain new ground. The global slow down, threat of Ebola, protests in Hong Kong, potential Ukraine-Russia conflict, weakening of Europe’s economy and many, many other dark clouds, the US market is finding a...

The Iron Law of Valuation

The discipline which holds that stocks and the market in aggregate have a fair value based on past, current, and estimates of future earnings. This method is calculated through exhaustive mathematical analysis and statistical back-testing.  Through this methodology, a...

Jobs

It has recently been argued by a leading economist that the Federal Reserve's great financial experiment of buying massive amounts of bonds (QE), dramatically dropping interest rates (ZIRP), and flooding the system with newly created money was not about bailing out...

Small Caps Continue to Dance Around the Long Term Trend

With all the discussion of the Fed, the referendum vote in Scotland, the S&P 500 hitting new highs and the IPO for Alibaba, some investors may have lost track of the small caps. They haven’t been so fortunate. Here’s a good article that helps to put this trend...

How to save over $1 million

A young client told me that she wanted to have a million dollars by the time she retired. In her mid-twenties, she has time on her side. By socking away $5,000 every year until she retires, she’ll hit her goal (assuming a 7% annual return). See the blue line. It would...

A Wake Up Call: How Not to Deal With an Inheritance.

The following story offers a great example of what can go wrong when a young, financially inexperienced individual becomes wealthy overnight. This author’s advice at the end is exactly what we recommend to clients in this situation: Get advice from someone on how to...

You Can’t Predict the Next Black Swan Event

What’s wrong with this chart? Give up? The folks that created the chart are trying to predict the next Black Swan - the next significant event that could derail the economy. The problem is, that by definition, black swan events are unpredictable and exceptionally...

What’s the best investment?

In a recent Gallup poll, Americans were asked what they thoughts was the best investment to make over the long term. Their choices: Real estate Gold Stocks Savings Accounts Bonds The average American incorrectly believes that Real Estate is the best investment over...

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