With the U.S. Open recently crowning its champions, I’ve had tennis on my mind. I imagine that for most people, when they think about the sport of tennis, they’re not thinking about how much in common it shares with financial planning. Maybe at first glance, one might think I’m referring to the financial gains one might benefit from by doing really well and succeeding at each of these disciplines. However, what I’m referring to instead is that in both tennis and financial planning, strong ... [Continue Reading]
Articles and Publications
A library of topical publications and articles written by CCM team members specifically for our clients.
Investors are prone to recency bias, a key aspect of behavioral finance that favors recent events over historic ones, and as an example, can result in focusing on companies that have generated the best returns in recent years as opposed to taking a longer view. What's important to remember is that, over time, each area of the market has its moment in the sun; internet stocks in the late 90s, commodities and real estate in the early 2000s, alternative investment strategies during the global ... [Continue Reading]
Last year, charitable donations rose five percent to a record level—$471.4 billion. 1 And yet, despite rising generosity, it’s important to acknowledge that, much like the practice of saving money, it’s not always easy to give charitably, even when you have the desire to do so. The study of behavioral finance explains why it can be difficult to accomplish our well-intentioned financial goals. Behavioral finance, which joins human psychology and economics, seeks answers to the why and ... [Continue Reading]
Headlines are crafted with a goal of grabbing your attention. They are designed to get you to buy, click, or react. And they often do this not by focusing on topics that engage the areas of your brain responsible for logic and reason, but rather the more primal elements of greed and fear. Even armed with that knowledge, their siren song is hard to resist. Take for example the widely discussed financial topic of the moment—inflation. Reading headlines like, “The Specter of ... [Continue Reading]
Cabin season is here! It is the time of year when roads fill up on Fridays and Sundays as people trek to and from cabin getaways. Some of my fondest memories growing up were spending time at my aunt and uncle’s cabin navigating the boat with my grandpa and cousin for the hot fishing spots. The fish tales made their way to the eulogy I gave for my grandpa a few years ago. When my kids were younger, my wife and I would rent a cabin every year over the Fourth of July. After a brief hiatus to ... [Continue Reading]