By Paul Ohanian, CFP® In the early days of my career as an investment professional, you could walk into your local bank and buy a 9% Certificate of Deposit. Today, that income staple is extinct. What was once a fairly cyclical pattern-Interest rates go up, interest rates go down-has steadily declined to flatline. And while low borrowing costs may have been a boon to many borrowers, it has become the bane of savers and retirees. This article discusses that decline and solutions we apply to … [Read more...] about Mind the (Fixed Income) Gap
The Seductive Nature of Fat Tail Distributions
Featuring David Booth Executive Chairman and Founder of Dimensional Fund Advisors. DISCLOSURES Eugene Fama and Ken French are members of the Board of Directors of the general partner of, and provide consulting services to, Dimensional Fund Advisors LP. Named securities may be held in accounts managed by Dimensional. Dimensional makes no representation as to the suitability of any advisor, and we do not endorse, recommend, or guarantee the services of any advisor. All … [Read more...] about The Seductive Nature of Fat Tail Distributions
How Much Impact Does the President Have on Stocks?
The anticipation building up to elections often brings with it questions about how financial markets will respond. But the outcome of an election is only one of many inputs to the market. Click HERE to explore Dimensional's interactive exhibit to examine market and economic data for nearly 100 years of US presidential terms. Past performance is no guarantee of future results. Investing risks include loss of principal and fluctuating value. There is no guarantee an investment … [Read more...] about How Much Impact Does the President Have on Stocks?
Q3 2020 Market Update
Q3 2020 Market Review from Paul Ohanian, CFP® This report features world capital market performance and a timeline of events for the past quarter. It begins with a global overview, then features the returns of stock and bond asset classes in the US and international markets.The report also illustrates the performance of globally diversified portfolios and features a quarterly topic. Nothing on this website shall constitute or serve as an offer to sell products or services in any … [Read more...] about Q3 2020 Market Update
Investing in FAANG Stocks: Should You Expect Unexpected Returns?
Over the 10 years from September 2010 to August 2020, a portfolio of the so-called FAANG stocks-Facebook, Amazon, Apple, Netflix, and Google's parent company, Alphabet-held in proportion to their market caps would have delivered an average annual return of 34.25% per year. That means on average, the value of the portfolio doubled about every 2.5 years. Given their great returns over the last 10 years, what is our best guess of how the FAANG stocks will do over the next decade? Read … [Read more...] about Investing in FAANG Stocks: Should You Expect Unexpected Returns?
The Very Personal Business of You
September 2020 Founder's Message, from the Desk of Paul Ohanian, CFP® When I started in the financial business more than 30 years ago, I was committed to making a real impact on people's lives. Credentialed as a CPA then, I was eager to put my skills to use. Beginning to work with my high-net worth clients, it became clear their unique and sometimes complicated circumstances required a C-level advisor; a true Chief Financial Officer for the household, who understands the overall … [Read more...] about The Very Personal Business of You