The Magic of Appreciation in Money and Life

The word “appreciation” has at least two important meanings and applications.  In the world of finance, it refers to the increasing value of an asset. In the inner realm of thoughts and emotions, appreciation involves recognizing the value of and feeling gratitude for specific relationships, resources, and circumstances.

In her book, The Soul of Money: Transforming Your Relationship with Money and Life, Lynne Twist teaches that appreciative thinking is the opposite of scarcity thinking: “When your attention is on what’s lacking and scarce—in your life, in your work, in your family, in your town—then that becomes what you are about.” (more…)

Resilience in the Time of COVID-19

The COVID-19 global pandemic and resulting economic uncertainly have had a profound effect on our sense of safety and control.  The closest experience that many of us have had in our lifetimes was the financial crisis in 2007-2008 followed by a deep recession.  Although the root causes are dramatically different, the impact on our sense of financial well-being is similar.  Few of us expected to face such challenging economic circumstances again within such a relatively short period of time. (more…)

Why a Stock Peak Isn’t a Cliff

Many investors may think a market high is a signal stocks are overvalued or have reached a ceiling. However, they may be surprised to find that the average returns one, three, and five years after a new month-end market high are similar to the average returns over any one-, three-, or five-year period. (more…)

How to Nurture Financially Savvy Kids

In 1988, financial planner and best-selling author Venita Van Caspel wrote in her bestselling book Financial Dynamics for the 1990s:

“Our educational system continues to send forth our young with so little information about financial matters that they are like time bombs about to destroy their own and their families’ economic futures. We equip them to earn good incomes and to live the good life, but we fail miserably as a nation to prepare them to know what to do with the money they earn.” (more…)

The Cost of Trying To Time the Market

The impact of missing just a few of the market’s best days can be profound, as this look at a hypothetical investment in the stocks that make up the S&P 500 Index shows. Staying invested and focused on the long term helps to ensure that you’re in position to capture what the market has to offer.

        • A hypothetical $1,000 turns into $20,451 from 1990 through 2020. (more…)

Stay Invested to Reap the Harvest

By Daniel Campbell, CFA

Historically bad to historically good

Value investors who chose to stay the course through the last few years were finally rewarded for their discipline!

Although it’s hard to believe, if we back up just a few months, the one-year period ending September 2020 was the worst return ever for small value stocks relative to larger, more growthy companies, with small value underperforming by a whopping 52%. The three-year returns were also abysmal, with small value underperforming large growth by nearly 26% per year, which is close to the performance disparity we saw during the tech bubble in the late 1990s. However, with the benefit of hindsight, we now know that September 2020 was the low point, as value stocks roared back to earn nearly 50% more than large growth stocks over the next two quarters.1 (more…)

You Can’t Get Outperformance Without Underperformance

by: Tim Maurer, CFP

Nobody minds market volatility when it’s in the upward direction. But recently we’ve gotten plenty of the type of volatility that we don’t like so much as investors, the kind that inspires headlines with words like “plunge” and that end with exclamation points.

It presents an opportunity, therefore, to remind ourselves of one of the central tenets of the art and science of investing: You can’t get outperformance without underperformance. (more…)

More Holiday Gift Giving Ideas – Nope, More Holiday Enjoyment Ideas

Well, here we are, in the midst of the Holiday Season and yet one more person, a finance planner no less, is going to presume to tell you how to enjoy the Holidays this year. That’s right, but with a twist. Since I really don’t presume to have all of the answers, I’m going to suggest you take this advice from someone else, not me.

The free eBook from Family Circle Advisers: Hip Family’s Guide to Happier Holidays is, quite simply, a little gem of a book by Lisa Parker, designed to help you and your family put the Joy back in the enjoyment of your end-of-year Holiday Season. The book is just five pages, but I believe they just may be five of the most important pages you’ve read in years. (more…)

5 Life Events Where Planning is Paramount

Your estate is made up of all your money, property and assets – and it’s alive. Not literally, but think of it like a beautiful, low-maintenance house plant. Once purchased and placed in the perfect spot in your home, you just need to provide it a bit of care to keep it from wilting. Once you have a solid estate and wealth transfer plan in place, it needs to be updated when your life changes. Which specific instances call for an edit? Glad you asked.  (more…)

The Randomness of Global Stock Returns

It is difficult to predict future returns by looking at the past, as shown by the performance of global markets since 2001.

  • This table powerfully demonstrates the randomness of global equity returns. It illustrates 20 years of annual returns in 22 developed markets. Each color represents a different country. Each column is sorted top down, from the highest-performing country to the lowest.