If performance is any kind of reliable measure the typical mutual fund investor just might warrant a meet and greet with Dr. Kevorkian. It’s a bit extreme but sure gets the point across. Since we’re bombarded with messages about ‘beating the market’ let’s look at how the typical investor faired in 2014. According to the [...]
Further evidence of how emotions are self-defeating when it comes to making decisions.
Ah, the lies we live by. Whether self-told or otherwise we blind ourselves from the truth. Better to avoid reality than accept and do something about it. It’s the most American of behaviors. When will we learn we are often our own worst enemy? Recently the folks at Northwestern Mutual explored attitudes towards finances and [...]
At the start of the evening news the pretty face in the tight clothing (because, after all, it's news and not entertainment - ha!) tells you it’s going to rain tomorrow. You’ll probably bring an umbrella. Later in the program when the full forecast is provided you hear it’ll be nothing more than short-lived drizzle. [...]
We (think we) know how to grow wealth...but do we know how to preserve it? As counterintuitive as it may seem the way to preserve wealth isn’t to eliminate risk but to (smartly) take some. Consider that successful wealth preservation requires a strategy that: 1) preserves purchasing power (i.e. inflation-adjusted value) 2) sustains wealth over [...]
According to a recent survey by the Certified Financial Planner Board of Standards 86% Americans say they’re stressed about their finances. What do they do about it? Nothing...at least in a meaningful or productive sense. 27% say that having a financial plan is the best way to reduce stress 22% say the answer is having [...]
A recent study by Legg Mason about investor attitudes, concerns and choices yielded this little nugget: the average investor spends about 90 mins/day thinking or worrying about money while the top 10% spend 2-3 hours per day. That means having a financial plan in place and a planner creating/monitoring/adjusting it could save the average person [...]
...is you. Thank you Josh Brown for this enlightening look at how people can't seem to get out of their own way. If you're an Apollo client (and, if not, why aren't you?!) or a reader of our blog/newsletters you would be correct in assuming the behavioral finance themes underlying the reactions to market stress [...]
Not long ago a prospective client inquired about Apollo’s views of the fixed income markets and, specifically, muni bonds. It was a simple discussion – one we’ve had with our clients a number of times since the ‘market meltdown’ of 2007-2009. We explained that with ‘risk-free’ 10-year Treasuries yielding 2% and the questionable balance sheets [...]
The following is an excerpt from an article by Carl Richards originally appearing in the December/January 2015 issue of Morningstar magazine. We've bolded a few of the more interesting points. I suspect you’ve heard a version of this phrase at least once in your career. It usually makes an appearance after you offer a recommendation [...]