Danger! The Knowledgeable Expert Who Can Hurt You

Month: December 2012

December 18, 2012  |  

Danger! The Knowledgeable Expert Who Can Hurt You

You’ve probably seen them on TV or the Internet: experts who make convincing cases for buying or selling specific investments. They’re well dressed, articulate, and have good credentials. Everything says they are knowledgeable. And, technically speaking, they may be experts on their topics. So, what’s the problem? These people are not experts on you, your goals, or your financial situation. Indeed, they have no responsibility to know anything about you. This is the critical missing […]

December 12, 2012  |  

Looking For a Free Lunch?

Sorry, in investing, there is no such thing as a free lunch. That means there is no such thing as a low risk, high return investment. Simply put, for the capital markets to function properly, every increase in expected return must be accompanied by a commensurate increase in risk. End of story. So when someone tells you about a “sure thing” investment, your “No Free Lunch” alarm should sound. You can avoid some of the […]

December 6, 2012  |  

2012 Asset Class Returns as of 11/30

Who would have guessed it? Which major investment class is up more than 30% as of 11/30? The answer: International Real Estate. It’s the best performing investment class of the year. Ask yourself, “Who was predicting that at the beginning of the year?” The point is not to suggest that successful investing requires predicting which asset class will be the best performer. Instead, it’s an example of the futility of such efforts. In our experience, […]