Mr. Market Is Distorting Your Tolerance for Risk

When NPR’s update of the day’s headlines mentions the stock market’s lack of volatility, conditions must be extraordinarily calm. Such is the case right now. The Chicago Board Options Exchange’s Volatility Index (the CBOE’s VIX)—an obscure index to those who don’t focus on the financial markets—made the morning news. While most investors prefer calm conditions…

 

Trading More Frequently Leads to Worse Returns

This interview originally appeared in the November 2014 issue of the AAII Journal. What impact does active trading have on portfolio performance? Terrance “Terry” Odean, professor of Finance at the University of California, Berkeley, has done quite a bit of research into the performance of individual investors. He spoke with AAII on his studies and their…

 

Advocating the Paycheck Strategy for Lifetime Investing

This article originally appeared in the October 2014 issue of the AAII Journal. The Paycheck Strategy for Lifetime Investing is outside of the current investment paradigm of professional investment advisers, but we believe it can be the basis for a strategy to ensure a flow of income. Instead of focusing on periodic investment gains and losses,…

 

Market Volatility Puts Buy-and-Hold to the Test

In a recent InvestmentNews blog post, Jeff Benjamin discusses how the latest market volatility has put a strain on long-term, buy-and-hold investment strategies. For those feeling the temptation to to sell, fearing a big market pullback, Benjamin offers some statistics that may keep you from placing those sell orders. “BUCKLE UP” Benjamin cites research from Todd Rosenbluth,…