Client Letter – Q1 2005

I hope you are enjoying the spring weather as much as I am!  I just love watching the grass turn green and the flowers bloom.  Just as nature goes through cycles, so do the investment markets.  At the end of 2004, we had just finished two amazing years in the real estate and equity markets. So, it did not really […]

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Retirement no longer means an end to working

When Social Security was put in place in the 1930s, the retirement age for full benefits was set at 65. That number was picked for a good reason: the majority of workers—worn out by a lifetime of manual labor—didn’t live much beyond that age, on average. Things are different today. The life expectancy of a woman age 65 is approaching […]

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Beat the market? Don’t even bother

It has been 30 years since financial economists first theorized that beating the market is almost impossible. Since then, many studies and experiments have confirmed this hypothesis. And yet, every day, millions of investors—egged on by a Wall Street publicity machine eager to encourage frequent trading—believe they can pick winning investments. It doesn’t make sense, argues Burton G. Malkiel, the […]

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Why investors are sold inferior funds

Ever wonder why your stockbroker or insurance agent was so insistent that you buy mutual funds from a specific fund family? It may have been because they were paid more to sell those funds. Your sales agent may have even gotten a free trip to the Caribbean for convincing you to invest. The practice is called revenue sharing or “pay […]

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Active mutual funds trail the indexes once again

Yet another study comparing the returns of active and indexed mutual funds has named indexed funds as the clear winners. The study of active mutual funds showed that over a 10-year period ending in 2003, active funds underperformed their benchmark indexes by three to one. The poor results were not limited to large stocks, moreover: funds in every stock size […]

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Client Letter – Q4 2004

Happy New Year!  We had another excellent year and I think you will be pleased with the results. Our diversification into such areas as real estate, small stocks, international stocks, and emerging markets stocks and bonds was very profitable in 2004. Returns in those areas beat the U.S. stock market, as measured by the Standard & Poor’s 500 Index.  The […]

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Protect your financial identity and avoid theft

In this day and age of computers and credit cards and information databases, it is almost becoming a question of when, not whether, you will become a victim of identity theft. The Federal Trade Commission says 27.3 million Americans were victims of identity thieves in the five years through 2003. “For several years we have been seeing anecdotal evidence that […]

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Client Letter – Q3 2004

So what’s going to happen to the market after the election? That question seems to be on the minds of many individual investors these days. The implications are that the market will be affected by the election and in a different way depending on which party lands on Pennsylvania Avenue.  More importantly, the investor who asks this question is also […]

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Bonds prove that common wisdom can be wrong

Earlier this year a rash of news stories and market commentaries warned investors about a coming decline in the bond market. The Federal Reserve had all but guaranteed it would begin raising interest rates for the first time in four years in order to head off incipient inflation. Rising rates are bad for bonds: their prices fall. The general wisdom […]

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