There has been much discussion in the news recently about new nominal highs in stock indices like the Dow Jones Industrial Average and the S&P 500. When markets hit new highs, is that an indication that it’s time for investors to cash out? History tells us that a market index being at an all-time high generally does not provide actionable […]
Client Letter – Q4 2016
During the past year, the best performing asset classes were U.S. large value, small, and small value stocks. Emerging markets stocks were next, just ahead of the S&P 500. The following chart shows the 1-year, 3-year, and 5-year performance of many DFA funds (representing different asset classes) compared to the S&P 500 Index: Market Returns for the period ending December […]
Quarterly Market Review – Q4 2016
For an in-depth look at the world capital market performance and a timeline of events during the past quarter, here is our Quarterly Market Review: About Christopher Jones Christopher Jones is the Founder and President of Sparrow Wealth Management, a fee-only financial planning and investment management firm. Before entering the investment field, Chris was a management consultant for Deloitte Monitor. […]
David Booth Brings Academic Research to Life
David Booth is the co-founder and co-CEO of Dimensional Fund Advisors. In this video, Booth discusses Dimensional’s heritage and the future of financial services. The reason Dimensional has been so successful, according to Booth, is because “we have connected the leading academics and caught the new wave of thinking about finance and investing. We were able to take those ideas […]
The Wine Lovers’ Guide to Investing
Savoring a vintage wine is one of life’s great pleasures. But often overlooked in the joy of consumption is the carefully calibrated journey from grape to glass. Similar levels of care are critical to good investment outcomes. A host of variables can determine whether a wine is great, good, mediocre, or undrinkable. These include the quality of the grapes, soil, […]
What’s Your Money Personality?
Do you know your money personality? Your money personality describes your attitudes and habits related to money. Some view money as a tool for security. Others look at money with a gamblers mind-set and enjoy the thrill of the chase. In her book, The Advisor’s Guide to Money Psychology, Olivia Mellan breaks down money personalities into five types: Amasser, Avoider, Hoarder, […]
Quarterly Market Review – Q3 2016
For an in-depth look at the world capital market performance and a timeline of events during the past quarter, here is our Quarterly Market Review: About Christopher Jones Christopher Jones is the Founder and President of Sparrow Wealth Management, a fee-only financial planning and investment management firm. Before entering the investment field, Chris was a management consultant for Deloitte Monitor. […]
Client Letter – Q3 2016
The third quarter defied expectations as world stock markets (with the exception of Great Britain) rose in the wake of uncertainties from the spring Brexit vote, the hotly contested U.S. presidential race, the threat of higher short-term interest rates, domestic and foreign terrorist attacks, international banking turmoil, and more. The following chart shows the 3-month, 1-year, and 5-year performance of […]
Presidential Elections and the Stock Market
This November, Americans will be heading to the polls to elect the next president of the United States. It is shaping up to be a very close race between Donald Trump and Hillary Clinton, two candidates with very different visions for the country overall. The outcome of this presidential election may have an impact on taxes and health care. Is there a way […]
Wells Fargo Incentive Structure Leads to Epic Scandal
If you have been reading the financial news lately, you have probably heard about the recent Wells Fargo scandal. Employees of Wells Fargo had an internal goal to sell “at least eight financial products per customer,” according to CNN Money. This led employees to create over 2 million fake credit card and bank accounts without the consent of its customers. Wells Fargo […]
