Money & Investing Blog

Stock and Bond Markets Remain Overvalued – October 2016

The average of four fundamental valuation measures shows a market nearly two standard deviations (82%) above its historical norm: Source: Advisor Perspectives, October 6, 2016 https://www.advisorperspectives.com/dshort/updates/2016/10/04/market-remains-overvalued Remember, asset price inflation (speculative return) contributes a very small amount towards total return over the long haul. Since 2012, however, speculative returns have been in the double digits…

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Reduced Future Returns Expected for Retirement Savings

Investment advisors and financial salespeople need to help retirement savers understand that we have entered a new era for investment returns, an era of much lower earnings growth for companies and significantly lower interest rates for stock and bond investments. Let’s look at historic investment returns for portfolios with differing levels of market risk: John…

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What is “The Right Price” to Pay for a Stock?

The amount of money we decide to place in common stocks in your investment portfolio is partially driven by the prices we have to pay for those stocks. The higher the price we pay for a dollar’s worth of earnings generated by a stock, the lower the chance that we receive the returns we need…

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Don’t Ignore Inflation’s Impact on Your Portfolio

Purchasing Power for Your Investment Dollar Continues to Erode A wise consumer consistently looks for the best deals on the stuff they buy every day. If steak prices get too high, maybe we consume more hamburger or chicken. Car prices get too high, maybe we opt to hold on the car we have a little…

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Our Thoughts on ‘Brexit’

Political events in Europe have taken center stage in the news and effects have rippled out across financial markets around the world. On Friday, the U.S. stock market, as measured by the S&P 500, fell by 3.6%. The rest of the world fared worse; Europe fell by 8.9% and the Europe/Asia/Far East index declined more…

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Before Hiring an Advisor, Check Item 11 on Their ADV

It is Critical to Watch Your Back March 30th was an important date for investment firms like BeManaged. Each year, we are required to file what is called a Form ADV. According to the SEC:   Before you hire someone to be your investment adviser, always ask for, and read carefully, both parts of the…

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The Incredible, Levitating S&P 500

April 2016 – The Incredible, Levitating S&P 500 After a rough start to the year, the S&P 500 rebounded in March erasing prior losses and turning in a 1.3% gain in the first quarter. As you see below this measure of stock market returns has increased 11% during last three and five year periods, significantly…

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2015 Ends as a Wash for Investors

January 2016 After All the Twists and Turns, 2015 Ends as a Wash for Investors But That Should Not Impact Your Savings Strategy Whether you look at the returns by different types of investments shown on the right, or just take a peek at your retirement account statement when received, you know that last year…

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