March 15, 2017
Yesterday’s post ended with the idea that, if interest rates go up, market valuations will have to rise for many investors to meet their return goals. Based on the example we used, market valuations would have to increase by 3 percent per year for investors to see their required returns.
March 14, 2017
I’m at the Commonwealth Chairman’s Retreat this week, which, as usual, is a real treat. The conference is always held in a wonderful location, with great speakers and content—not to mention the chance to connect with some of the best financial advisors in the world.
March 8, 2017
After the market's record-setting run, we’re now seeing a small pullback. This seems an appropriate time to take a look back at history and evaluate where we stand—not so much on the valuation and risk front, but with a general eye to how the market behaves over time and how we should react.
Will the stock market rally continue? That’s a big question right now, and the answer will depend on two things:
March 2, 2017
With the Dow cracking 21,000 yesterday, just over a month after breaking 20,000—and other indices setting records as well—there are a few questions we need to ask.
February 24, 2017
We left off yesterday with the conclusion that the price you pay for an investment can determine your returns over time. It's a commonsense principle: other things being equal, someone who pays more for an investment will, over time, do less well than someone who pays less.
February 23, 2017
We concluded yesterday that time, in and of itself, does not explain how investments should behave over the next several years. The question now, of course, is what does?
February 22, 2017
Last week, we started thinking about what the long run really means for investors. It was a decent first cut, but the graphs I used to illustrate my point were not as useful as I had hoped. Today we’ll take a more numerical look at the argument.
February 17, 2017
As I wrote earlier this week, for investors, the difference between the short term and the long term is not as obvious as it would seem. Where does one end and the other begin?
February 10, 2017
One of the emerging issues I see many investors grappling with is the short term/long term dichotomy.
