After taking a closer look at interest rates and inflation we come to the heart of the matter: When interest rates, inflation, or both are on the rise, what’s an investor to do? Big picture, we ...
May 24, 2022
The Finley Wealth Advice Blog
It's About Helping You Become The Hero Of Your Own Financial Story
The latest articles from our blog:
Choose your area of interest:
Financial Education & News
Investing in Uncertain Times
Has rising inflation got you down?
In our last post, “Fed Takes Center Stage” we explored how rising and falling interest rates can impact a healthy economy. Today, let’s add inflation to the conversation. How Do We Measure Inflation? Inflation is the ...
Fed Takes Center Stage
At its March 15–16 Federal Open Market Committee (FOMC) meeting, the U.S. Federal Reserve raised its federal target funds rate by a quarter-point. It was the first increase since December 2018, but it wasn’t a huge ...
Ukraine
Despite our fervent hopes that Ukraine’s sovereign rights would prevail over tyrannical aggression, it’s now clear that Vladimir Putin has doubled down on the latter. Time will tell how his plans will play out. If there’s ...
Navigating Geopolitical Events
The recent conflict between Russia and Ukraine is an important reminder that geopolitical risk is a part of investing in global markets. Navigating geopolitical events requires expertise and flexibility. Dimensional’s systematic active approach is designed to ...
The Small Caps That May Be Holding Back Your Portfolio’s Returns
The stock market is off to a rocky start in 2022. Some shares have fallen more than others: Exhibit 1 shows how small caps have lagged large caps in 2021 and into 2022, at least when ...
You Want the Size, Value, and Profitability Premiums … But How?
You have made the decision to target the size, value, and profitability premiums in equities, which is great, but it is only a great starting point. There are many questions to consider when incorporating these premiums ...
Noise in the Estimates of Internally Developed Intangibles
Introduction Intangible assets have always been a part of the economic landscape.1 They include patents, licenses, and computer software as well as branding, reputation, and goodwill. A company may develop those assets internally or purchase them ...
Fighter Planes and Market Turmoil
Have you been reading the daily headlines—watching markets stall, recover, and dip once again? If so, you may be wondering whether there’s anything you can do to avoid the motion sickness. If you already have a ...
Investment Advice
Ideal Investment Portfolio Management: Principle 10 in Evidence-Based Investing
We wrap our 10-part series on the principles of evidence-based investing with how a fiduciary financial advisor can add value to your investment portfolio management. Most importantly, by combining financial expertise with personalized guidance, we help ...
Six Hacks for Maintaining Investment Discipline: Principle 9 in Evidence-Based Investing
Investment discipline is all about being able to see past the daily market distractions to maintain a long-term perspective. A big challenge here is knowing how to identify and ignore your own emotional investing biases. They ...
Emotional Investing Is Risky Investing: Principle 8 in Evidence-Based Investing
Many people struggle with emotional investing. That is, they find it difficult to make consistent, rational investment decisions. Instead, they tend to react to current market conditions out of fear, excitement, or other gut instincts. Emotional ...
Why Stick with a Globally Diversified Portfolio? Principle 7 in Evidence-Based Investing
Why buy and hold a globally diversified portfolio instead of reacting to breaking news? Political, social, and economic headlines come and go. But you never know which market segments will outperform from day to day, or ...
Diversify Your Investment Universe: Principle 6 in Evidence-Based Investing
Expanding your investment universe by holding securities across many market segments can help manage overall risk. In a word, we call this “diversification.” But diversifying within your home market may not be enough. Global diversification helps ...
What Really Drives Higher Expected Returns? Principle 5 in Evidence-Based Investing
There is a wealth of academic research into what really drives higher expected returns. Simply put, expected returns = current market prices + expected future cash flows. Investors can use this basic equation to optimize their ...
Understanding How Markets Work for You: Principle 4 in Evidence-Based Investing
The financial markets have rewarded long-term investors. Understanding how markets work is a worthwhile investment of time and resources. People expect a positive return on the capital they supply, and historically, the equity and bond markets ...
Resist Chasing Past Performance: Principle 3 in Evidence-Based Investing
Some investors select mutual funds based on their past performance. Yet, past returns offer little insight into a fund’s future returns. For example, most funds in the top quartile (25%) of previous five-year returns did not ...
Trying To Outguess the Market Has No Role: Principle 2 in Evidence-Based Investing
The market’s pricing power works against investors who try to outguess the market. As evidence, only 23% of US equity mutual funds and 8% of fixed income funds have survived and outperformed their benchmarks over the ...
Embrace Market Pricing: Principle 1 in Evidence Based Investing
Each day, the world equity markets process billions of dollars in trades between buyers and sellers—and the real-time information they bring is what drives market pricing.You, the Market, and the Prices You PayWhen it comes to ...
Investing in Uncertain Times
After taking a closer look at interest rates and inflation we come to the heart of the matter: When interest rates, inflation, or both are on the rise, what’s an investor to do? Big picture, we ...
Has rising inflation got you down?
In our last post, “Fed Takes Center Stage” we explored how rising and falling interest rates can impact a healthy economy. Today, let’s add inflation to the conversation. How Do We Measure Inflation? Inflation is the ...
Retirement Advice
Investing in Uncertain Times
After taking a closer look at interest rates and inflation we come to the heart of the matter: When interest rates, inflation, or both are on the rise, what’s an investor to do? Big picture, we ...
Has rising inflation got you down?
In our last post, “Fed Takes Center Stage” we explored how rising and falling interest rates can impact a healthy economy. Today, let’s add inflation to the conversation. How Do We Measure Inflation? Inflation is the ...
Fed Takes Center Stage
At its March 15–16 Federal Open Market Committee (FOMC) meeting, the U.S. Federal Reserve raised its federal target funds rate by a quarter-point. It was the first increase since December 2018, but it wasn’t a huge ...
You Want the Size, Value, and Profitability Premiums … But How?
You have made the decision to target the size, value, and profitability premiums in equities, which is great, but it is only a great starting point. There are many questions to consider when incorporating these premiums ...
Noise in the Estimates of Internally Developed Intangibles
Introduction Intangible assets have always been a part of the economic landscape.1 They include patents, licenses, and computer software as well as branding, reputation, and goodwill. A company may develop those assets internally or purchase them ...
Fighter Planes and Market Turmoil
Have you been reading the daily headlines—watching markets stall, recover, and dip once again? If so, you may be wondering whether there’s anything you can do to avoid the motion sickness. If you already have a ...
Wealth Protection
The ABCs of Behavioral Biases (H–O)
There are so many investment-impacting behavioral biases, we could probably identify at least one for nearly every letter of the alphabet. Today, we’ll continue with the most significant ones by looking at: hindsight, loss aversion, mental ...
ABCs of Behavioral Biases (A–F)
Welcome back to our “ABCs of Behavioral Biases.” Today, we’ll get started by introducing you to four self-inflicted biases that knock a number of investors off-course: anchoring, blind spot, confirmation, and familiarity bias. Anchoring Bias What ...
ABCs of Behavioral Biases – Series Intro
By now, you’ve probably heard the news: Your own behavioral biases are often the greatest threat to your financial well-being. As investors, we leap before we look. We stay when we should go. We cringe at ...
Has rising inflation got you down?
In our last post, “Fed Takes Center Stage” we explored how rising and falling interest rates can impact a healthy economy. Today, let’s add inflation to the conversation. How Do We Measure Inflation? Inflation is the ...
When Everything Screams Inflation
How quickly things change. Two years ago, the New York Times reported, “Federal Reserve officials are increasingly worried that inflation is too low and could leave the central bank with less room to maneuver in an ...
Is Inflation Haunting Your Financial Dreams? (Part 2)
Part 2: What We Can Do About It In our last piece, we covered the recent uptick in inflation, and what to make of it in historical context. For investors, it’s important to take a step ...
© 2022 Finley Wealth Management, LLC - Naples - Bonita Springs - Fort Myers - Estero