Interest rate risk has been THE big worry for bond investors for a number of years now.  It seems that everyone has been predicting a rise in interest rates, but it just hasn’t happened quite yet. This has caused many investors to shift their bond allocation in anticipation of a rate increase and price losses in…

One of the most difficult challenges of transitioning to retirement from the working world is a complete change in mindset with regards to an investment portfolio. You go from being a saver to a spender. There’s no future income or nearly as much time to soften the blow from bear markets. Growth is still necessary but you…

“There are few corners of the investment business where reversion to the mean does not hold sway.” – Michael Mauboussin

Before 1990, there wasn’t an easy way for investors to put money to work in a diversified basket of commodities. Unless you had your own seat on the futures exchange a la Dan Akroyd and Eddie Murphy in Trading Places or hired a broker who did, it would have been nearly impossible to include commodities…

“Successful investing is anticipating the anticipation of others.” – John Manard Keynes

“Beware of geeks bearing formulas.” – Warren Buffett Research Affiliates puts out some of the most interesting and thought-provoking research in the investment industry. Founder Rob Arnott’s work on fundamental indexing is especially innovative. The firm’s latest piece looks at smart beta and a host of factor investing data. One factor they looked into was the…

You can’t go a single day without seeing at least one news story about the Millennials. I’ve heard it all about my generation at this point — we don’t know how to invest; we aren’t buying homes or cars; we live in our parent’s basement; we have too much student loan debt; we aren’t getting…

“It is better to be roughly right than precisely wrong.” – John Maynard Keynes Financial theory tells us that portfolio construction is about finding a group of assets with low correlations to one another in an attempt to find the highest return for a given level of risk. This is one of the main benefits of…

“Life is not complex. We are complex. Life is simple, and the simple thing is the right thing. – Oscar Wilde Financial markets are complex, non-efficient and at times extremely volatile. This dynamic causes investors to forget about their long-term process during times of turbulence. Investors become vulnerable to deviations from an investment plan when short-term market pain…

“We must base our asset allocation not on the probabilities of choosing the right allocation but on the consequences of choosing the wrong allocation.” – Jack Bogle One of the most important decisions investors have to make when constructing a portfolio is how to spread their investments between stocks, bonds, cash and other investments. Asset…