For our Investment Insight this quarter, the chart featured below presents the opportunity to consider the concepts of average market returns, after-tax real returns, and needed returns, while reminding ourselves of what might otherwise seem counter-intuitive.What may be counter-intuitive to us as investors is that annual returns are almost never average. Coming out of 2015—a year in which three of four quarters were significantly positive—demonstrates how the experience we “felt” the majority ... [Continue Reading]
Updates and articles on timely topics from the Investment Team.
Even though today’s market is rebounding significantly as I write, it is still important for us to address the topic of all of the recent volatility. For global stock market investors, the news so far in 2016 has been marked by negative returns. As even the most successful investors realize, negative stock market returns are to be expected from time to time—as often as three years out of every ten. For the US stock market, as measured by the price of the S&P 500, 2015 was the first ... [Continue Reading]
Scan the financial headlines and each day you can find plenty of press on supposed stock market prophets who have found "under-priced" stocks and have taken advantage of them. Anyone who has a career as a stock picker thinks they can do this, and everyone wonders why they can't be the next Warren Buffett. As pointed out in this article, an important fact to consider is that just 4% of actively managed stock funds outperformed the S&P 500 in each of the past four years. In “Can You Pick the ... [Continue Reading]
"It’s tough to make predictions, especially about the future." – YOGI BERRA This past quarter marked the passing of the only major leaguer to have won a World Series ring for each of his fingers. Along with that honor (and many other incredible feats as part of the greatest dynasty in modern sports), Yogi Berra was also known as one of sports’ greatest “philosophers.” Since his death, there have been numerous pieces written reflecting on the best of the best “Yogi-isms” —connecting them with ... [Continue Reading]