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]
Articles and resources related to International Investing.
In this video clip, Adam Hoffmann, CFP®, AIF®, Chief Investment Officer, discusses why CCM believes international investing is a key part of a successful diversified portfolio. He covers the general framework for our approach, provides historical benefits and discusses what we, as investors, might expect in the future. NOTE: The information provided in this video is intended for clients of Carlson Capital Management. We recommend that individuals consult with a professional ... [Continue Reading]
TRIVIA TIME: how many stocks make up the Wilshire 5000 Total Market Index (a widely used benchmark for the U.S. equity market)? While the logical guess might be 5,000, the reality is that as of December 31, 2016, the index actually included around 3,600 companies. In fact, the last time this index contained 5,000 or more companies was at the end of 2005.1 Surprisingly to most, this reduction in investable companies is nothing new. Over the past two decades, there has been a steep decline in ... [Continue Reading]
As the new year begins, one of the most common questions I’m asked in my role at the firm is, “What do you think about 2016? Was it a good year?” In this context, the question typically refers to the year from an investing perspective. However, assigning a letter grade or a broad ranking to the span of a year doesn’t necessarily align with the depth of our experience and how the world’s events impact our lives. Categorizing a year as exclusively good or bad can overlook the complexity of events ... [Continue Reading]
“If you can predict the future, you shouldn’t worry about being diversified” – Greg Carlson, CCM CEO and Co-Founder Diversification has many benefits for investors when utilized appropriately. A diversified portfolio can have lower volatility, higher returns and increase the probability of a successful retirement. Because portfolio diversification is so universally accepted and often coined as ‘the only free lunch in investing,’ people frequently assume that it will only have a positive ... [Continue Reading]