Most investors are aware that US stocks have out-performed many other asset classes over the past several years, with emerging markets and some developed markets generating particularly disappointing results. The main reasons for this disparity are relatively well-known – the US economy has performed relatively well, while emerging markets have been impacted by a collapse […]
Nobel laureate and M.I.T. professor of economics Robert Merton doesn’t think much of target-date funds. Excerpts from the November 2, 2015 online edition of Advisor Perspectives: Target-date funds are an exceptionally bad way to save for retirement, according to Robert Merton. Merton is a professor of economics at M.I.T. and was awarded the Nobel Prize […]
Yet another study reveals the truth about active investment management – that beating the market is hard, and doing it consistently is nearly impossible. This particular study started in March 2009 – the beginning of the current bull market – and looked at 2,862 actively managed US equity mutual funds that were in operation for […]
Last week, California Public Employees’ Retirement System (CalPERS), the largest pension fund in the US, announced that it would pull all $4 billion from its hedge fund investment program of 24 hedge funds and six hedge “fund-of-funds”. CalPERS was one of the first pension funds to invest in hedge funds in 2002. Hedge funds – […]
The financial services industry spends millions of marketing dollars every year trying to convince investors that the key to financial success is picking the right stocks (or mutual fund) or correctly timing the market. Yet study after study over the past four decades has shown that most actively-managed mutual funds under-perform their benchmarks. For example, […]
In an August 19, 2014 article on the CBS MoneyWatch website, author Larry Swedroe tackles the question of whether active management can generate superior results to index or asset class-oriented strategies in less developed market segments, like emerging markets stocks. One argument often made by advocates of active management – or stock-picking – is that […]
At Springwater, we believe that the best strategy for generating superior long-term investment results is to focus on setting the appropriate asset allocation (or mix of categories of investments, like large cap stocks, small cap value stocks, real estate, bonds, etc) and then implementing that allocation in the most cost-effective and tax-efficient manner. For us, […]
“Low cost is the single best predictor of subsequent performance [for mutual funds] … it’s definitely not past performance.”, according to the director of fund research at Morningstar. Do you know what the expense ratios are for the funds in which you’re invested? Or the blended expense ratio for your portfolio? With a five-year bull […]
We’re pleased to have added a new video to our Springwater Wealth website. This video introduces the four investment principles that form the foundation for our investment philosophy, and our approach to building portfolios for our clients. You can watch the video on our Videos page here.
We’re pleased to have added a new video to our Springwater Wealth website. This video introduces the conceptual underpinnings of proper portfolio diversification, discusses its benefits, and explains how to implement it. You can watch the video on our Videos page here.