A Tool that Doesn’t work

March 15, 2017

There is one tool constantly discussed and reported on in the financial press that you may be surprised actually doesn’t work all that well when it comes to long term investing It’s called economic forecasting.

John Kenneth Galbraith was a Harvard economist that after years of study concluded, “The only function of economic forecasting is to make astrology look respectable.”

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Reviewing your Portfolio too often is not good for you – or your portfolio

I just finished reading Richard Thaler’s book called “Misbehaving”  which reviews the history and studies done on Behaviourial Economics – how human behaviour (regarding financial decisions) effects the economy.  Richard coined a phrase called “myopic loss aversion”  which suggests the more we look at our portfolio, the more we are likely to focus on the losses (due to the constant but temporary volatility) the more we see losses, the more we experience loss aversion and the greater the chance we’ll do something typically not best for our long term success.  If you are looking at your portfolio more than once a quarter and finding you get upset at what you see, I recommend you read this article from Ben Carlson.


Seven Important Questions

February 6, 2017

Just like our personal health, our financial health is up to us. We alone have to take the initiative to educate ourselves on the basics, consider our situation, seek out professional help where appropriate, and make the necessary changes. Here are seven questions you need to ask yourself and address to ensure your financial security. May be not as important as, “the question” but important all the same.

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