Where’s the Value?
From 1928–2017 the value premium in the US had a positive annualized return of approximately 3.5%. In seven of the last 10 calendar years, however, the value premium in the US has been negative. This has prompted some investors to wonder if such an extended period of underperformance may be cause for concern. But are periods of underperformance in the value premium that unusual? We can look to history to help make sense of this question. short-term [...]
Park + Elm Investing Principle #4: Let Markets Work for You!
Principle #4 is HERE! Let Markets Work for You! Download the rest of our Ebook Here to get all 10 principles!! The financial markets have rewarded long-term investors. People expect a positive return on the capital they supply, and historically, the equity and bond markets throughout the world have provided growth of wealth that has more than offset inflation. Companies compete with each other for investment capital, and millions of investors compete with each other to [...]
Quarterly Market Review: Q2-2018
Click on the link below for a detailed analysis of quarterly performance of the global equity and fixed income markets. CLICK HERE TO READ THE 2ND QUARTER 2018- QUARTERLY MARKET REVIEW
Park + Elm Investing Principle #3: Resist Chasing Past Performance!
Principle #3 is HERE! If you missed #1 and #2...YOU'RE IN LUCK! Download the rest of our Ebook Here to get all 10 principles!! (Research above shows only 20% of all active mutual funds beat their corresponding index over a 10 year time frame. And of those, only 37% continued over the next 5 years. This is only 205 of 2758 mutual funds that beat their index over a 15 year time frame. It’s nearly impossible to [...]
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 [...]
