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Portfolio Solutions Blog

Anthony Watson
January 27, 2016

Once again, investment markets are acting like investment markets. We understand that the day-to-day numbers and sensationalized media coverage may be disconcerting, but we want to reassure you that this short-term volatility is a natural and healthy part of the market cycle.

During times of market volatility, you may be tempted to take action in response to short-term market fluctuations. However, one of the most important things to do is to stay disciplined and not change your long-term investment strategy in...

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Anthony Watson
December 16, 2015

Some bonds within the U.S. high-yield sector have been under strong pressure recently. 

In response to falling global economic growth expectations and rapidly declining expectations for energy and commodity producing company earnings, selling of these bonds has accelerated among the higher-risk and less liquid bond issues. And because the troubled and leveraged energy sector alone makes up 12% of the high-yield debt sector, pressures from such selling have been magnified. 

The market was further rattled by a recent announcement from New York-based Third Avenue Management, LLC...

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Rick Ferri
October 07, 2015

Investment discipline isn’t easy. Despite best intentions and claims to the contrary, many investors chase performance, react emotionally to market moods, and generally incur far more trading costs than good discipline would suggest. Even when there is a long-term plan in place, if it’s not followed, the plan is useless. Over the years, I’ve seen good intentions go by the wayside time and again because discipline was not followed.   

These observations aren’t limited to individual investors. I’ve seen similar conduct from investment...

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Rick Ferri
October 05, 2015

The Feds may or may not raise interest rates in 2015. China’s economy may or may not recover anytime soon. The correction in August caused some investors to panic and others to benefit from the dip. It’s business as usual in the markets, with the usual mixed messages tempting individual investors into trying to time interest rates, predicting global economies, or forecasting the market’s next turn.

Is it really worth risking your retirement savings playing a timing game? The temptation to time the market or pick the next winning investment...

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Rick Ferri
September 23, 2015

“Ignorance is bliss,” or so the saying goes. Unfortunately, as it applies to Wall Street, that bliss is more likely to go to those preying on investors’ ignorance than by those who remain financially naïve. That’s why it’s so important for investors to arm themselves with understanding, at least of the financial basics. For example, here’s one of my favorite lessons: The less you spend on investing, the more you get to keep.

I feel for investors who don’t manage their costs, because they pay a dear...

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Rick Ferri
September 17, 2015

In the market’s never-ending story, we never know how its most recent action will play out. One thing we do know is that when the market is more volatile than usual, investors who lack a personalized, long-term plan to guide their way are far more likely to make the wrong moves by the time the cycle is complete. In our opinion, every investor’s long-term plan should include embracing a buy, hold and rebalance approach to investing. This is one of the simplest and most effective ways to diversify and it may help you prosper in various financial markets...

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Rick Ferri
September 08, 2015

You’ve just received a lump sum of cash. Perhaps it was from a rollover retirement account, the sale of assets, or an inheritance. Now what do you do? Your first thought may be to spend it. That’s always an option – and probably the most fun option. The less-fun decision is to invest it. This is especially less fun if you’re unfamiliar with how all that works. It’s no wonder one of the most frequent questions I am asked is how to invest lump sums of new cash.

One of the first decisions to make is whether to invest the proceeds all at once...

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