Understanding “Value” Investing

Value stocks or mutual funds comprise a key element in many investors’ portfolios. But what does value mean? What distinguishes value stocks from all others, especially growth stocks? Every value stock has its own story, but the common elements connecting all value stocks relate to price and risk. Price: Value stocks are often referred to […]

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In Search of Higher Returns?

¬†   1.8% That’s all you can expect to earn over the next ten years if you¬†invest in Ten Year US Treasury Notes. Doesn’t seem very attractive to you? You aren’t alone. These days, investors are searching for ways to increase the yield on their portfolios. In the bond market, there are two basic ways […]

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Is Past Performance a Reliable Predictor of the Future?

Many investors look at past mutual fund performance when deciding choosing an investment. There is only one problem with this strategy: it doesn’t work reliably. Lets look at the evidence. In the chart below we see that from 2001-2006, there were a total of 557 US large-cap equity funds. One hundred thirty nine of the […]

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Protecting Your Wealth

Taking a comprehensive approach to managing your wealth means more than just managing your investments. It requires comprehensive wealth management betting colludes wealth protection. There are essentially 2 ways to protect your wealth: Mitigating risk means taking actions that will minimize your exposure to risk and, should that risk occur, minimize its impact. Transferring risk […]

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First Quarter Perspective

The first quarter of 2012 was great for equity markets. We experienced a global-wide rally of double digit returns in many indexes. Here at home, the S&P 500 Index rose 12.59% and the Russell 2000 Index rose 12.44%. Overseas, international markets faired just as well with the MSCI EAFE Index gaining 10.98%. The trend upward […]

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The Long-Term Care Dilemma: Insurers Leaving, Premiums Increasing

We often receive questions about long-term care insurance and those questions have increased lately with the news that several insurers are leaving the long-term care market. While most of our clients have done a fantastic job of accumulating assets and self-insuring their long-term care needs, parents, family and friends may benefit from the following insights […]

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Why Is The Average Investor’s Performance So Poor?

The data is conclusive. The average investor’s returns are, umm, below average. How can this be? What appears to be statistically impossible is due to two basic factors, investment discipline and costs. Over the last 20 years, the average stock investor earned 3.49% compared to the S&P 500′s return of 7.81%. A $100,000 investment in […]

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