Financial Bubbles

It hasn’t been much fun lately to be an investor.  The S&P 500 hadn’t seen a 10% drop, a so called “market correction,” since 2011.  However, all that changed recently as the index hit a low of 1,867.61 on August 25th, down 12.4% since the record high of 2,130.82 achieved […]

The Elephant in the Room

Performance.  It is considered a vulgar word in the financial advisory industry, and the reasons aren’t hard to understand.  Numerous studies have shown that between 60% and 80% of mutual funds underperform their benchmarks.  It almost has to be that way.  Collectively, the large institutional investors are the market.  After […]

October Investment Comments

The second half of August brought an unfriendly reminder of why stocks are generically called “risk assets.” In just four trading days in August, the S&P 500 declined approximately 10%, ultimately notching a low price that was more than 13% below its all time high set in May of this […]

September Investment Comments

In the late 70’s, the now iconic Saturday Night Live television show was just getting established. One of the recurring skits featured a character named Roseanne Roseannadanna, played expertly by the late actress Gilda Radner. The sketch was formulaic in nature and usually ended with some variant of “It just […]

Academic Validation

I was at a conference recently talking to a prospective client about how we manage equity portfolios.  She was shocked when I told her we build diversified portfolios with only 20 or so common stocks.  Then I told her that since 2000 we have beaten the return on the S&P […]