If I had told you a year ago that Facebook’s stock price would drop by more than 70% in 2022, what would you have thought? That I’m crazy? Well, that’s exactly what occurred. From 2014 through 2021 an investment in Facebook (now Meta) would have cumulatively outperformed an investment in the S&P 500 by nearly…
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Over my many years as a financial planner I’ve pretty much heard it all when it comes to investment beliefs and expectations. Here are five of the more interesting investment fallacies I’ve encountered. A stock split is a buy signal (false).  A stock split is nothing more than a company’s attempt to reduce the price…
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There are two ways mutual funds can be managed. Actively-managed funds are those whose management teams attempt to generate a better return than the average return produced by the asset class in which the fund invests. Passively-managed funds simply try to achieve the average return. Because active funds require more analysts and/or complex software algorithms…
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When I was a teenager I was a fan of science fiction. I recall reading one story about an attempted takeover of the world by a bad guy using warrior robots. His nefarious plan was thwarted by the good guy who discovered a way to cause the robots to self-destruct. The solution involved feeding conflicting…
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The capital markets are once again experiencing a bout of high volatility. Both stock and bond returns are negative year-to-date, with technology and other growth stocks leading the pack. Possibly investors are worried about the outcome of the Russian invasion of Ukraine. Or the longer-term likelihood of protracted inflation. Or interest rate increases. Or something…
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