Blog
So You Think You’re a Risk-Taker?
Nothing is more important for investors than learning how much they can stand to lose. But nothing is harder to learn—before it’s too late. http://blogs.wsj.com/moneybeat/2014/10/24/so-you-think-youre-a-risk-taker/
Will a Stock Market Correction Derail your Goal?
Corrections are more normal than often thought and should be inconsequential. Bear markets, which are periods of more significant decline, should be surmountable if you have planned properly. Stock market “corrections,” defined as drops of 10% or more, are not more likely at the top of a market. Between the years 1900-2013, the Dow (DJIA) stock index dropped 10% or more about once a year. Stocks do not maintain steady…
The Reality of Red Numbers
What’s your guess as to how many months the stock market declines or rises each year? And in bad vs. good markets? Our yearly update of “The Reality of Red Numbers” shows you, and illustrates that market volatility is often a reasonable price to pay as part of a diversified portfolio, to help capture long-term positive returns… whereas inflation (purchasing power risk) is often a more harmful risk in the…
Goin’ up, goin’ down… let it roll
“Goin’ up, goin’ down, goin’ up-down-down-up… any way you want, let it roll” (song lyrics). Volatility has been low in the past few years. As measured by the VIX volatility index, market fluctuations are at the lowest level since before the global financial crisis. That doesn’t mean high volatility is immediately around the corner, but it is important to remember that smooth markets are not the norm. All investors should…
WealthStep Update
The Advisory Group of San Francisco, the company that operates WealthStep, was recently ranked in FT Top 300 Registered Investment Advisors, in Financial Times 6/2014 study.
Quarterly Thoughts – Q1 2014
Are there clear patterns of investment market returns over time? How does a “balanced” portfolio compare to individual asset classes over time? Our chart entitled “The Periodic Table of Investment Returns – A Case for Diversification Amid Uncertainty” is a colorful illustration that addresses these questions. People are not naturally wired for investing. Without discipline, it is human nature to make mental errors, often due to “recency bias” and the…
Quarterly Thoughts – Q4 2013
Will a disciplined investment process improve your health? Recent research says yes. Stress caused by dramatic market movements, the financial press, and investors’ common behavioral mistakes can make people feel queasy… or worse. A March 2013 study by the University of California at San Diego found that hospitalizations rise on days when stock market prices fall. Another study published in the American Journal of Cardiology showed a significant correlation between…
Quarterly Thoughts – Q3 2013

Consider focusing where you can make an impact, in terms of your life goals and financial goals. The simplicity of this diagram is profound. The world around us is complex and full of “noise,” both statistical and theatrical (e.g. TV news, etc.). The senses are bombarded with eye and ear-catching attempts to grab your attention. The challenge is to remain focused on what counts. Insufficient focus leads to distraction and…