Market Education

Trade wars, increasing inflation, rising interest rates, high valuations, geopolitical tensions, political dysfunction, major deficits and debt, late-stage economic cycle, wealth inequality, and aging demographics are all reasons investors should be careful about investing right now. Or are they? All these things matter, they just don’t matter that much to...

If you are focused on using a smart portfolio approach as we discussed in a previous post, you can create additional returns to your portfolio while using a cost-effective and efficient management strategy. Several studies, including one by Vanguard, have concluded investors can add anywhere from 2-4 percent in excess returns per year by following some straightforward steps that have nothing to do with beating an index.

In my last post, I talked about investments as falling into one of two categories: passive index funds, and actively managed funds. More precisely, investments really fall into four categories or quadrants, drawn by two axes, the (vertical) cost-complexity axis and the (horizontal) strategy axis. The chart above illustrates the concept...