Tag

Behavioral Finance Archives - Wealthspire Advisors

quarterly commentary

2019 3rd Quarter Commentary: “The Recession is Coming! The Recession is Coming! What is a Recession Anyway?”

Market Commentary
Click here to view printable PDF version One of our least favorite things about investing is the remarkable imprecision of language. There are so many terms like "risk," "momentum," "smart beta", and "asset class" (among many others) that have no precise definition-- and yet, everyone assumes they know what those terms mean. We were thinking about this recurrent complaint while being barraged with articles and narratives about the inevitable coming "recession." While we don't want to seem callous, our concern is with the effect of a "recession" on portfolio returns, not the actual economic effects. Assuming the next "recession" is…
Read More
FOMO

2019 2nd Quarter Commentary: “From Fear to FOMO”

Market Commentary
Click here to view printable PDF version It was just over six months ago that we penned a piece about the then market sell-off, cautioning against knee-jerk reactions to short-term headlines such as “Worst December Since 1937” amongst others. Well, it did not take long. At 4:01 ET on Friday, June 28, a headline flashed across the Bloomberg terminal: “S&P 500 Has Best First Half of Year Since 1997.” This time around, we again urge calm, in this case against the fear of missing out, or FOMO. We often write about why we choose to be strategic investors, and will…
Read More

2019 1st Quarter Commentary: “When Hindsight Isn’t 20/20”

Market Commentary
Click here to view printable PDF version “Before, You Are Wise; After, You Are Wise. In Between, You Are Otherwise.” -David Zindell Most of us are attracted to round numbers.  Attentions peak around calendar years and familiar anniversaries that have meaning beyond the numbers themselves.  Rarely do we celebrate someone being at a company for 28.14 years or ask about performance over the last 3,147 days, but we do celebrate 20-year reunions and the beginning of a new century.  So, for a society fond of round numbers, the opportunity arrived in early March to count and reflect.  Ten.  In our…
Read More

2018 4th Quarter Review: “Holidays, Goldilocks, Resolutions and Strolling Along the Laffer Curve”

Market Commentary
Click here to view printable PDF version In the grand scheme of things, this holiday season was probably no different from those of the past. Like many others, my family went through some combination of joy, distress, kindness, alienation, reconciliation and everything in between (sometimes all in a matter of minutes). Ultimately, the kids were happy to be out of school and together with the family, and although they occasionally fought and complained, there were still glimpses of heartwarming Rockwellian moments. On the other end of the spectrum, the adult dinner conversations were probably more Orwellian in nature, highlighting how…
Read More

Market Volatility for Retirement Plan Participants

By Blog
How you should think about recent stock market activity In recent years, U.S. Stocks have experienced the longest bull market on record, and investors have become accustomed to portfolio returns that are higher than what has been historically expected. But with some volatility returning to markets in early 2018, followed by several notable drawdowns in the last few months of the year, many Americans are increasingly revisiting their 401(k) holdings with some level of anxiety. If you, like many Americans, are a 401(k) participant, should you be doing anything? We’ve answered a lot of questions for our clients recently, so…
Read More

Don’t Panic, Prepare: What To Do Before the Next Market Correction

By Blog
Before the most recent market correction of late-January and early-February this year, investors hadn’t experienced 10% (or greater) retreat in market prices since January 2016.  The bull market that seemingly produced a new record high each week in 2017 was confronted with historic market realities in early 2018. Now that we have experienced some volatility in 2018, we need to prepare ourselves for the next market correction.  There’s no telling when it will come, but a savvy investor is one who is aware of the market’s history of volatility and has a game plan for achieving long-term investment goals, even…
Read More
behavioral finance

Our Habits Matter

By Blog
My five month old daughter is just beginning to understand the concept of cause and effect. She is learning that when she shakes her rattle it will make a sound and that when she giggles mommy and daddy will make a big fuss. In these small ways she is starting to form her first conceptions about the world around her. These initial observations will create the foundation for the development of her very first habits. While we have more control over our actions than a five month old, the reality is that our habits evolve in exactly the same way. When we observe…
Read More