Anson Blog

June 14, 2017

Withdrawal Risk in Retirement

When an investor reaches retirement, there are many changes and adjustments to be made. One of those changes is transitioning from actively earning money to drawing from the money that has been saved for retirement through a portfolio or other investments. When considering how income will be supplied […]
July 11, 2016
Risk & Return are Related

Risk and Return are Related

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 Ahead Sign

Why is Volatility Important?

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
Failure of Active Management

The Failure of Active Management

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
Perils of Market Timing

Perils of Market Timing

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 […]