Let’s not beat around the bush… You’re probably not going to like what I have to say in today’s issue. But that’s OK. Many of you need to hear it. #-ad_banner-#It’s time for a little tough love in today’s issue. If you’ve been thinking to yourself lately that you could use a good pep talk, then today is your lucky day. As for everyone else, feel free to tune out. Even ‘Perfect’ Portfolios Experience Painful Losses I’d like you to consider for a moment an interesting find made by the folks at AlphaArchitect, a prominent “robo-advisor”… Read More
Let’s not beat around the bush… You’re probably not going to like what I have to say in today’s issue. But that’s OK. Many of you need to hear it. #-ad_banner-#It’s time for a little tough love in today’s issue. If you’ve been thinking to yourself lately that you could use a good pep talk, then today is your lucky day. As for everyone else, feel free to tune out. Even ‘Perfect’ Portfolios Experience Painful Losses I’d like you to consider for a moment an interesting find made by the folks at AlphaArchitect, a prominent “robo-advisor” firm. (A robo-advisor is an online wealth management firm that uses complex algorithms to custom design portfolios for clients.) The question: If you were God, could you create a hedge fund so good that you would never get fired? The study assumes you are able to know the returns for all stocks in the S&P 500 for the next five years ahead of time. This level of omniscience comes with a catch, though. You have to hold your positions for the entire five-year duration. Only then can you rebalance the portfolio by selling those… Read More