Thinking Differently About Asset Allocation

Imagine walking into your new doctor’s office for a routine physical.  The doctor asks for no information other than your age.  From just that piece of information, the doctor gives you a clean bill of health, suggests that you exercise 3 times each week, eat a well-balanced diet, thanks you for coming, and reminds you [...]

What Comes Next – The Investment Forecast Folly

We recently sent our quarterly letter to clients and the following is an excerpt that offers our thoughts on the merits of making an investment forecast for 2014, or any year, for that matter. The fact that both the economies and the stock markets of the developed nations performed so well last year might lead [...]

Behavioral Investment Flaws and The Irrational Bias For Action

The following is an excerpt from the letter we wrote to clients in July 2013 and provides a worthy lesson in behavioral investment. Peter Bernstein in Against the Gods states that the evidence of investor behavior “reveals repeated patterns of irrationality, inconsistency, and incompetence in the ways [they] arrive at decisions and choices when faced with uncertainty.”  [...]