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
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 ...
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 ...
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 ...
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 ...
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 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 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 ...
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 ...
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 ...
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 ...
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 ...
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 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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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