September 2018

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Your Bad Taste in Music Isn’t Helping You Invest

Spotify’s algorithm recently uncovered a gem (to me, anyway) from my youth, adding Gilby Clarke’s “Cure Me Or Kill Me” to one of my playlists.  I admit that this is not a great song, but seeing as how our musical tastes are developed in our teenage years, this track scratches an itch for me.  It brings me back to laying in bed, headphones cranked too high, listening to 106.9’s Top Ten at Ten.  Tremor Christ, Volcano Girls, Counting Blue Cars, Loser, Andres – all on ROCK ONE OH SEVEN WRQK, CANTON’S ROCK STATION!!! Like our taste in music, our perspective on risk can be overly influenced by our early investing experiences.  Vanguard found that Millennials who started investing with them after the global financial crisis were more than twice as likely to hold zero-equity portfolios as those who started investing before.  They also found that older investors held more equities…


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Can’t Trust’em

It pays to be skeptical of financial product pitches.  Investments that are sold rather than bought are often inferior and loaded with fees.  Marketing (even for good funds) is filled with cherry-picked data, but that’s the job of the marketing folks – make the product look good.  However, sometimes a pitch comes across my desk that goes beyond marketing and makes me wonder whether the money manager is dishonest or just incompetent.  Either way, they get filed under ‘Can’t Trust’em’. The latest entry into my ‘Can’t Trust’em’ file is a manager that absolutely crushed the S&P 500 over the last 10 years.  They lost a ton less than the index during the crisis and were up over 60% in 2009.  Returns for other years were pretty middling, but they shined when it counted the most, right?  I looked around on their website a bit and found a document called ‘BACKTEST’. …