J. Hagan & Warren Wealth Advisors
Protecting Your Wealth
Last weekend’s Intelligent Investor column looked at the extreme difficulties of disentangling skill from luck when you are evaluating investment performance. It’s the topic of an excellent new book by Michael Mauboussin and a subject of endless fascination – and frustration – to investors. We tend to think of the greatest investors – say, Peter [...]
Investors’ 10 Most Common Behavioral Biases by Robert P. Seawright Barry Ritholz (of The Big Picture and a Sunday Business columnist at The Washington Post) recently contributed Investors’ 10 most common mistakes to The Washington Post Business Section quarterly investing section. It’s a commentary that he has been working on for a while — the ten topics are listed with links [...]
What is the last thing you were wrong about? If you can’t remember or have to think hard – don’t worry. That’s perfectly normal. Humans are conditioned to avoid being wrong. And even when we are wrong we will often fight tooth and nail trying to convince ourselves that we are right. It’s a natural [...]
I have to say – it’s nice to see the IMF admitting fault in misunderstanding the negative effect of austerity over the years. I like to say that it’s “only in being wrong that we can learn to be right.” So, what have we really learned from the last 5 years? Let’s step back and [...]
An insider of the secretive world of high-frequency trading is set to attack that industry Thursday on Capitol Hill, giving lawmakers a potential road map to address practices that critics say can put ordinary investors at a disadvantage and the financial system at risk. WSJ’s Michael Siconolfi explains how high-frequency traders undercut everyday stock [...]
Investment Outlook August 2012 Cult Figures The long-term history of inflation adjusted returns from stocks shows a persistent but recently fading 6.6% real return since 1912. The legitimate question that market analysts, government forecasters and pension consultants should answer is how that return can be duplicated in the future. Unfair though it [...]
With computerized traders that “hold” stocks for only a few seconds at a time and markets that can swing wildly in a matter of moments, long-term investing seems to be on the verge of extinction. Perhaps this is inevitable. It turns out that short-term thinking is deeply embedded in the workings of the human brain. [...]
Bad News for Boomers Demographic trends will depress portfolio returns, this researcher warns If you’re a baby boomer, you’ve got a big problem when it comes to the investment returns you can expect in retirement: It’s the sheer number of other boomers who are also getting ready to leave the workplace and rely on their [...]
by Jon H. Hicks, MBA, MSFS Click on the linked article below for a quick look at the impact of losing money. Albert Einstein called compound interest the “8th Wonder of the World”, which is an interesting concept. However, the exact compounding effect happens inversely when there are market loses rather than market gains. If [...]
