From: thinkadvisor.com
Dalbar’s annual study of investor behavior shows that self-directed investors work against themselves largely by chasing the market.
Investors are their own worst enemy, or so is the conclusion of Dalbar’s 22nd annual Quantitative Analysis of Investor Behavior study that compared equity fund returns of directed investments versus the market benchmark. This year’s study found that in 2015, investors returns came in at -2.28% for…
From: marketwatch.com
A bear market will still come, and you are still responsible for saving enough for retirement
America voted for change on Tuesday. Whether you celebrate that result or dread it, don’t react by making significant changes to your investment portfolio.
Yes, the immediate aftermath of the election is greater market volatility, but that was obvious hours before the election results…
Seeking diversification to help mitigate the effect of volatility on their portfolios, investors often consider REITs, commodities, and hedge funds, but overlook high-quality bonds, which just might be the Rodney Dangerfields of the investment world. They don’t get any respect.
This chart demonstrates various investments’ track records during turbulent periods for equity markets. By sorting monthly equity returns into deciles and examining the worst periods, we find that high-quality bonds have proved to be one…
From: marketwatch.com
Some big percentage of voters will be disappointed with what the new president can achieve next year.
But a larger percentage of investors may be even more dissatisfied with their financial advisers.
A recent study from Natixis Global Asset Management shows that investor expectations about the total return they can squeeze from a portfolio remain sky high compared with what advisers…
From: financial-planning.com
(Bloomberg) — Holdings in bond ETFs climbed to records in the U.S. and Europe, spurred by ease of trading and the lure of higher yields in emerging markets.
Bond ETFs now manage $428 billion in the U.S. and $150 billion in Europe, according to BlackRock. The iShares Core U.S. Aggregate Bond ETF also became the first fixed-income ETF to surpass…
From: financial-planning.com
Rebalancing client portfolios is a strategy most advisers embrace wholeheartedly. Yet sometimes even this seemingly obvious technique takes a measure of courage to implement.
Imagine this scenario: A client comes to the adviser’s office and expresses unhappiness with the funds in her portfolio that have not performed well. The adviser suggests that a rebalancing be done.
“Great, what does that involve?” asks the client.
“Well,” says the adviser,…
From: thinkadvisor.com
Dalbar’s annual study of investor behavior shows that self-directed investors work against themselves largely by chasing the market
Investors are their own worst enemy, or so is the conclusion of Dalbar’s 22nd annual Quantitative Analysis of Investor Behavior study that compared equity fund returns of directed investments versus the market benchmark. This year’s study found that in 2015, investors returns came in at -2.28% for…
From: cnbc.com
Remember inflation?
It’s been a while since it was a big part of American life. Inflation has been so low that Social Security payments were not increased for 2016, and the Federal Reserve has even raised the possibility of negative interest rates.
Yet inflation has not disappeared, and for retirees, even low inflation can have an outsized effect on their finances, according to recent research by…
From: fa-mag.com
About four years ago, I authored an article for Financial Advisor in which I examined risks to the “4.5% safe withdrawal rule,” which I had developed over many years of research. At that time, my conclusion was that the rule was still viable. But when you consider the case of the person who retired on January 1, 2000 (someone who had to contend with not…
From: thinkadvisor.com
In exclusive interview, Lou Harvey laments the scarcity and necessity of advisors’ client hand-holding.
The Boston-based consulting firm just released its famous Qualitative Analysis of Investor Behavior (QAIB) study, now in its 21st annual edition, and it once again exposes a wide gap between investment returns — the return of a benchmark index — and the much smaller returns…
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