The Independent Market Observer

Brad McMillan, CFA®, CFP®

Brad McMillan, CFA®, CFP®, is managing principal, wealth management, and chief investment officer at Commonwealth. As CIO, Brad chairs the investment committee and is a spokesperson for Commonwealth’s investment divisions. Brad received his BA from Dartmouth College, an MS from MIT, and an MS from Boston College. He has worked as a real estate developer, consultant, and lender; as an investment analyst, manager, and consultant; and as a start-up executive. His professional qualifications include designated membership in the Appraisal Institute, the CFA Institute, and the CAIA Association. He also is a CERTIFIED FINANCIAL PLANNER™ practitioner. Brad speaks around the country on investment issues and writes for industry publications, as well as for this blog.
Find me on:

Recent Posts

Global Moment: Saudi Arabia, China, and the U.S. Markets

January 5, 2016

It certainly didn’t take long for markets to set the tone in 2016.

The first trading day of the year kicked off with big declines around the world, and investors were quick to start worrying. At 9:40 A.M. yesterday, someone asked me what I thought of the “January effect”—the notion that what happens in January determines the outcome for the year—and if I believed 2016 would be a washout. My response, in brief, was that 10 minutes probably isn’t a long enough time frame to judge the entire year.

Continue reading → Leave a comment

Monday Update: Consumers Confident, but Housing Slows

January 4, 2016

Last week was a short one thanks to the New Year holiday, with limited economic data released. Overall, the data was positive, indicating that improved consumer confidence should continue to drive the economy. But one of the major components, housing, may be slowing down, suggesting more of a slow but steady recovery.

Continue reading → Leave a comment

Examining the Theory of a 7-Year Cycle in U.S. Financial Markets

December 31, 2015

This post originally appeared last summer. Now, as we close out 2015, I want to revisit whether the theory actually played out.

Predictions of doom and gloom in the financial markets or economy tend to try my patience—unless they are supported by fact—so I’m understandably skeptical of the Shemitah, a prophecy that suggests the potential for a financial crisis every seven years. Imagine my surprise, though, when I looked more deeply into this story and discovered that there is something to the theory of a seven-year cycle in U.S. financial markets.

Continue reading → Leave a comment

Navigating Mutual Fund Results

December 30, 2015

This post originally appeared in February 2015, but it’s worth a refresher as we start a new year.

Did you know that South Boston is actually to the east and East Boston to the north of the city? And that there’s one local highway where you’re really traveling south but on a northbound route at the same time? I’m not sure who drew up the plans, but I think they might have had a screw loose.

Trying to make sense of mutual fund gains and losses can be equally confusing.

Continue reading → Leave a comment

Avoiding Shortsightedness: Looking at Returns for the Next 10 Years

December 29, 2015

I shared this post last spring, and I think it’s a great reminder to help us keep our expectations in check for the new year.

The recency effect is a well-known cognitive bias in which events that have occurred most recently are given more weight than a longer-term trend. Recency bias poses a problem when it comes to evaluating investment returns—most people will only look at the last year’s returns, disregarding historical trends.

Continue reading → Leave a comment

Monday Update: Mixed Data, But More Signs of a Slowdown

December 28, 2015

On a shortened week with the Christmas holiday, last week’s data releases gave a mixed look at the consumer and business sectors, with notably different results.

Continue reading → Leave a comment

Renewal and Hope for Christmas

December 24, 2015

As 2015 draws to a close, the time has come for my traditional Christmas post. Best wishes to you and yours this holiday.

I have always loved Christmas. But as I grew older, I think I lost much of the wonder and the spirit behind the love and giving of the season. Now I have a seven-year-old son who is wrestling with the stress of being good under the eye of the “Elf on the Shelf,” eyeing presents under the tree, and baking cookies with his mom. His anticipation and enthusiasm are infectious, and I realize that, thanks to his influence, I am recovering much of what I had lost.

Continue reading → Leave a comment

Core Truths About Investing

December 22, 2015

This post originally appeared last spring in response to questions I had received about my investing approach.

Given what I do for a living, it’s not surprising that I have frequent conversations about investing. I was asked something recently that on the surface seemed like an easy question to answer: What core truths do you know about investing? There are endless factoids, trends, and theories, but what do you believe to be the basic constants?

Continue reading → Leave a comment

Monday Update: U.S. Good, Abroad Not So Good

December 21, 2015

Last week’s releases included consumer prices, sentiment in the housing industry, housing starts, and industrial production. Plus, of course, there was the most important one: the decision by the Federal Open Market Committee to start raising interest rates.

Continue reading → Leave a comment

Rising Interest Rates, Part 3: What About Investments?

December 17, 2015

This post originally appeared last spring and is part 3 of a series on what happens when interest rates start to rise.

As this is the final post in my series on interest rates, it’s time to talk about what everyone is probably thinking: What happens to investments when interest rates rise? This question is especially pertinent given yesterday’s decision by the Federal Reserve on a rate hike.

Continue reading → Leave a comment

Subscribe via Email

AI_Community_Podcast_Thumb - 1

 

Episode 9
July 23, 2025

Episode 8
June 18, 2025

Episode 7
May 14, 2025

Episode 6
April 23, 2025

More


Hot Topics



New Call-to-action

Archives

see all

Subscribe


Disclosure

The information on this website is intended for informational/educational purposes only and should not be construed as investment advice, a solicitation, or a recommendation to buy or sell any security or investment product. Please contact your financial professional for more information specific to your situation.

Certain sections of this commentary contain forward-looking statements that are based on our reasonable expectations, estimates, projections, and assumptions. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Past performance is not indicative of future results. Diversification does not assure a profit or protect against loss in declining markets.

The S&P 500 Index is a broad-based measurement of changes in stock market conditions based on the average performance of 500 widely held common stocks. All indices are unmanaged and investors cannot invest directly in an index.

The MSCI EAFE (Europe, Australia, Far East) Index is a free float‐adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The MSCI EAFE Index consists of 21 developed market country indices.

One basis point (bp) is equal to 1/100th of 1 percent, or 0.01 percent.

The VIX (CBOE Volatility Index) measures the market’s expectation of 30-day volatility across a wide range of S&P 500 options.

The forward price-to-earnings (P/E) ratio divides the current share price of the index by its estimated future earnings.

Third-party links are provided to you as a courtesy. We make no representation as to the completeness or accuracy of information provided on these websites. Information on such sites, including third-party links contained within, should not be construed as an endorsement or adoption by Commonwealth of any kind. You should consult with a financial advisor regarding your specific situation.

Member FINRASIPC

Please review our Terms of Use

Commonwealth Financial Network®