Monthly Archives: December 2014

Alts: Like a Box of Chocolates

So news is circulating today about one the largest liquid alternative investments and its absolutely rotten year.   According to the fund’s website, Good Harbor financial’s Tactical Core US A (GHUAX) is a long-only (no short selling any stocks) US large cap strategy benchmarked to the S&P 500.  They even go so far to say […]

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What readers liked most in 2014

(Everybody else is doing it, so here’s my list of most-read posts in 2014) 1) Hate something (or a few things) in your portfolio? Why Diversification Sucks. 2) While being a “passive” investor is better for you, even “Passive” investors have to make “Active” decisions 3) There’s always a great reason not to be invested in […]

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3 Things I Learned in 2014

(Yes, I am absolutely stealing this idea from Cullen.  Go read his, it’s great.) 1) Many (but not all) roads lead to Rome. “We” in the investment business like to discuss and debate the finer points of factor models and small/value tilts and tax loss harvesting and rebalancing strategies and global allocation and treatment of […]

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The magic of self-correcting markets

I love studying markets. They fascinate me. Not just the stock market – all economic markets, from garage sales to global commodities. Markets provide the opportunity to observe the combination of finance and human behavior (rational and irrational alike) like nowhere else.  And every year (almost every day) we get some opportunity to watch market reactions […]

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WSJ On Investors’ Self-Sabotage

I had a good chat with Morgan Housel at the Wall Street Journal about how easy it is for investors to sabotage their own portfolios due to our behavioral tendencies: James Osborne, president of Bason Asset Management in Lakewood, Colo., recently met with a new client who benefited handsomely from the nearly six-year upward run […]

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Is there such as thing as “intrinsic value?”

I’ve been re-reading Howard Marks’ The Most Important Thing (which is excellent, of course) and an assumption he frequently relies on is the idea of “intrinsic value.” Marks is a portfolio manager and founder of Oaktree Capital Management.  He has a Warren Buffet/Ben Graham-esqe value style of investing. Popular among bottom-up value fund managers, the basic […]

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Bubbles: A View From the Outside

We humans have been driving bubbles in assets of every stripe for generations.  From tulip bulbs to tech stocks to beanie babies and bitcoins, our potential for irrational speculation has no end.  If we are lucky, we avoid these traps, but that can be harder than it sounds. In the last five years we have […]

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