The Five Deadly Sins of Investing

If you invested dispassionately, using an objective analysis of the historical data, you would invest in a globally diversified portfolio of index funds with low management fees. It’s not that you can’t beat the market by investing in actively managed funds. Every year, some mutual funds outperform their benchmark. However, their probability of doing so over the …Read More.

Positive Developments for Municipal Bond Investors

Public pension underfunding at the state and local level has rightly received an enormous amount of attention over the past few years. Most public pension funds are significantly underfunded when pension liabilities are valued using economically reasonable assumptions. In fact, Moody’s has calculated total underfunding to be roughly $1.8 trillion as of 2011, meaning the …Read More.

How You Frame the Investing Question Matters

It’s my experience that there are two keys to being able to maintain control over those urges that get investors into trouble. The first is to understand financial history. That means knowing that stocks are high risk investments, subject to large losses (we’ve had three bear markets with losses of about 50 percent or more …Read More.

The American Funds Advantage?

I was forwarded an article that American Funds published touting the superiority of its funds relative to index strategies. The piece contains statements like this: “Some investment managers, American Funds among them, have distinguished themselves with a proven track record of consistently outpacing broad market returns.” And other fabulous statements like this: “Obviously, some are …Read More.

Know-Nothing Investors Outperform Know-Somethings

All but the most diehard proponents of the efficient-markets hypothesis accept the fact that with valuable inside information, one can earn abnormal returns. That leaves this question: Does access to information that is publicly available provide investors with a sufficient advantage to outperform appropriate risk-adjusted benchmarks (generate alpha)? In other words, is the quantity and …Read More.

Our Offices
©2019 KEB Asset Management