2022

Anybody with an investment account, regardless of how it’s allocated, is probably well aware that markets are down significantly this year. That hasn’t always been the case, since in previous market downturns there were other asset classes that held up just fine while stocks declined. The first thing to remember is that although these situations aren’t the norm, they do happen. From time to time, everything moves in the same direction. We have no problem with it when that direction is up, but when it’s down, we certainly take notice. A strategy that normally protects well against volatile market periods…

Nothing reminds you of what you should be doing but aren’t like a good dose of uncertainty.  Inflation and recessions both have the ability to add uncertainty to our lives in the form of higher prices for our necessities, temporary investment losses, and the potential for reduced income.  When you are used to having a certain level of income, be it from employment or investments, and a certain level of expenses, any changes in the wrong direction can be a good wakeup call that what you should be doing to overcome these challenges is probably what you should have been…

Target-date funds have been growing in popularity over the years with their promise that the investments inside them would change over time to stay aligned with their aging investors’ needs for lower volatility and more downside protection as they approached retirement.  Three years ago we wrote a piece (see below) on how important it is for investors to really know just how much risk their target-date funds carry inside them, because we believed that most investors as they approached retirement would want more protection than target-date funds are structured to give.  Fast forward to this year and many target-date funds…

That’s not technically a question, but there are any number of questions contained in that sentence: “Are other people worried right now?  Should I be worried right now?  Are you guys worried right now?. . .” When I hear this question from a client, I always take it to mean there is some amount of worry being experienced on the other end of the phone, but my client doesn’t know if he or she should be worrying. Rather than admit to that worry straight out, it feels safer to ask if other people are experiencing the worry.  So, when a client says, “I suppose you’re getting…

This question has both a simple textbook answer and one that is much more nuanced. Humans always seek to simplify the complex. We establish shortcuts, or heuristics to help us make sense of things and keep from getting bogged down.