Yearly Archives > 2015

Sep
23

Realizing Value

Written by: and

“Out of clutter, find simplicity.  From discord, find harmony.  In the middle of difficulty lies opportunity.” – Albert Einstein From 1970 through 2014, large cap value stocks outperformed large cap growth stocks by 2.4% per year with an average annual return for value of 10.7% versus 8.3% for growth, according to Morningstar.  Furthermore, since 1926, […]

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Sep
1

The Volatility…Continued

Written by: and

August was awful for the stock market.  The iShares Core S&P 500 exchange-traded fund lost 6.14% for the month and the iShares MSCI All-Country World Index declined 6.81%.  Adding insult to injury, with today’s action, September is off to a pitiful start. When experts point to the reasons for the recent market slump, they cite […]

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Aug
13

Commodity Funk

Written by: and

On March 11, 2011, we wrote an essay entitled “Commodity Craze,” which argued that the pricing of most commodities – from gold to oil to wheat – was too high.  The crux of our argument was the disconnect between inflation (especially inflation expectations) and the prices of commodities. We didn’t predict a collapse in commodity prices, […]

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Jun
9

Indexing Is All the Rage

Written by: and

Since 2006 investors have pulled more than $700 billion from actively managed U.S. stock funds and added an equivalent amount to index mutual and exchange-traded funds.  As of year-end 2014, Empirical Research Partners found that index funds account for 35% of total stock “fund” assets (combined mutual and exchange traded funds), up from 25% in […]

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Jun
1

Advisor’s Alpha

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In 2001, Vanguard, the mutual fund behemoth based in Valley Forge, PA, created the concept of “Vanguard Advisor’s Alpha” to describe the value that financial advisors can add through financial planning, discipline and ongoing guidance.  In other words, they were attempting to quantify the benefit that a financial advisor’s clients receive above and beyond the […]

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Apr
30

Sell in May?

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Most investors have heard the old stock market adage, “Sell in May and go away.” So should investors heed this advice as we say farewell to April showers and welcome May flowers? Over the last 20 years, the Dow Jones Industrial Average has actually averaged a May gain of 0.17% with positive returns half of […]

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Apr
15

Health Savings Accounts and Investing

Written by: and

In the spirit of tax season, below is an explanation of Health Savings Accounts (HSAs). These vehicles are another way to defer dollars and lower your annual tax bill if you have access to an HSA-qualified plan. If you are self-employed with a higher income, such a plan is probably worth exploring. If your employer […]

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Apr
7

Our Long-Term Investing Values

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Since developing our investment philosophy nearly seven years ago, we have maintained five core investing values: diversification, tax-efficiency, low turnover, transparency and consistency. Much of our industry outright dismisses or merely pays lip service to these core values, which is why we continue to categorize our approach as contrarian. Understanding that an investment strategy’s level […]

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Apr
2

Treasury Inflation-Protected Securities (TIPS)

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For clients who have a fixed income (bond) component to their portfolios, we use a strategy called laddering, which is a series of individual bonds with chronological maturity dates. Every year when a bond matures we extend the ladder another year by purchasing a new bond at the end of the ladder. Our ladders usually […]

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Mar
13

Happy Birthday, Bull Market!

Written by: and

Earlier this week, the bull market celebrated its sixth birthday. Since World War II, only three other bull markets lasted this long. After 72 months without a drop of 20% or more, the stock market isn’t as cheap as it used to be. And while far from exuberant, investors have grown more comfortable with stocks, […]

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