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Showing posts from November, 2018

Painkillers vs. Vitamins

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November 15 is a big date for hedge fund investors and their managers.  November 15 is the date investors must inform managers that they would like their money back in January.  The October statements could scare clients into making the decision to redeem.  Successful investors warn against making emotional decisions we might eventually regret.  While we might block out past erroneous decisions, a good investor and their experienced advisors can be a good sounding board.  This week we will look at resources that can help us make good decisions on November 15 and beyond.
Dalbar
Wealth managers often reference the results of the annual Dalbar study.  The poor results that retail investors continue to experience were at first shocking but have now become ‘Meh”. Our advice is to educate your clients on how they can avoid the Dalbar pit.  We have found that establishing an IPS during calm times and reminding our clients the importance of adhering to the IPS commitments when markets become …

Midterms

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Now that the Midterms have finally come and gone, we will have more brain capacity and TV capacity to focus on other issues in our life.  An October 26, 2018 episode of Hidden Brain entitled "Too Little, Too Much" shared some academic research on our limited brain capacity that can guide us.  Freeing up the Midterm capacity will create mental capacity that will allow bloggers and investors the opportunity to focus on issues that impact our financial and emotional lives. This post will address what the wealth management industry can learn from successful midterm strategies without clouding our judgment by requiring we pick a side.
We are shocked and appalled by the billions spent on political campaigns.  Let’s examine where the money was spent and examine where the strategies worked.


Brand
The financial crisis created brand backlash against Wall Street.  This backlash opened the door for independent advisory firms to position themselves as the anti-Wall Street and helped the…