Investment Fundamentals
Anson Blog
December 9, 2016
It is an essential investment decision: actively managed mutual funds or index funds? Actively traded investments, outsmarting the market, and “playing the game,” or investing in the index and playing it safer? Whether you are a risk-taker or a risk-adverse investor, you need to know that index funds […]
October 4, 2016
REACTIVE INVESTING IN A MARKET CIRCLE The idea behind investing is simple: buy low and sell high. Easy, right? Insert irrational, emotional human beings and things get a little more complicated. When we allow emotions to impact our investing, leading to reactive decisions instead of staying steady, the […]
July 11, 2016
The difference in returns among portfolios is largely determined by relative exposure to the market, small cap stocks, and value stocks. Stocks offer higher expected returns than fixed income due to the higher perceived risk of being in the market. Many economists further believe that small cap and […]
July 10, 2016
Volatility is the least recognized destroyer of wealth. Most investors have no idea of its negative impact. If two portfolios average 10% per year, shouldn’t they be equivalent? Not exactly. Consider the example above: Both portfolios have an average return of exactly 0%. Both portfolios begin year 1 […]
June 30, 2016
Research by Eugene Fama and other financial academics has offered evidence that the bond markets are efficient and that interest rates and bond prices do not move predictably. This appears to be the case with all types of issues, from short-term government instruments to long-term corporate bonds. This […]
June 15, 2016
Investors who flee the stock market for the safety of cash may experience temporary relief from market volatility. But after leaving stocks, their anxiety may shift to concern over missing a stock market rebound while sitting in cash. The above performance data offer a recent example of the […]
June 28, 2016
The cartogram above displays countries by the ratio of their stock market value to the world’s total market value (free-float adjusted). People invest in various countries’ markets based on factors such as population, GDP, and exports, but more generally, investors gravitate to markets offering the optimal risk-adjusted expected returns. Highlighting […]
Considering Morningstar a Fiduciary is a Bad Idea