What You Pay, What You Get: Connecting Price and Expected Returns
STOCK PRICES ARE CHANGING EVERY DAY - AND AS PRICES CHANGE, SO DO EXPECTED RETURNS. It has been more than 50 years since the idea of stock prices containing all relevant information was put forth. Information might come in the form of data from a company’s financial statements, news about a new product, a change in the regulatory environment, or simply a shift of investors’ tastes and preferences toward owning different investments. Information is [...]
Investing for Retirement Principle #2: Don’t Try to Outguess the Market!
Principle #2 is HERE! Download our Ebook Here to get all 10 principles!! The market’s pricing power works against mutual fund managers who try to outsmart other participants through stock picking or market timing. As evidence, only 17% of US equity mutual funds have survived and outperformed their benchmarks over the past 15 years. Even so, traditional investment approaches strive to beat the market by taking advantage of pricing “mistakes” and attempting to predict the [...]
The Impact of Inflation
JUNE 2018 WHEN THE PRICES OF GOODS AND SERVICES INCREASE OVER TIME, CONSUMERS CAN BUY FEWER OF THEM WITH EVERY DOLLAR THEY HAVE SAVED. This erosion of the real purchasing power of wealth is called inflation. Inflation is an important element of investing. In many cases, the reason for saving today is to support future spending. Therefore, keeping pace with inflation is a crucial goal for many investors. To help understand inflation’s impact on purchasing [...]
Park + Elm Investing Principle #1: Embrace Market Pricing
This is just #1! Download our Ebook Here to get all 10 principles!! Many investors believe that there may be a way to predict when to buy and sell securities, and it's possible that pricing errors occur in financial markets. But it's clear that investors have a very difficult time consistently exploiting these errors. Over the last five years… About 60% of actively managed large cap US equity funds have failed [...]
Today’s Video: Doing Better with Global Diversification
Over long periods of time, investors can benefit from consistent exposure in their portfolios to both U.S. and non-U.S. equities - large and small; value and growth. Check out this short video with Dimensional's Joel Hefner explaining how diversifying globally and emphasizing the dimensions of higher expected returns can improve the chances of having a successful investment experience. This is why Park + Elm is focused on designing globally diversified portfolios, minimizing investment costs and keeping [...]
Video of the day: Tuning Out the Noise!
As an investor, it's hard to stay focused on what really matters, and block out the constant noise. We believe the right financial advisor can get you closer to tuning it out! Check out the short video below to see why a more peaceful investment experience can be achieved!
