Investment Planning

We always talk about the harm short-term thinking can inflict on your investment portfolio. Now a new study from Professors Francois Brochet Maria Loumioti and George Serafeim at Harvard Business School further explores the risks for companies and investors who are attracted to short-term results.

Plenty of investors motivated by greed and the media’s general hoopla got caught up in the Facebook IPO frenzy. The result? Another big win for Wall Street. Days before the IPO Facebook increased the number of shares it would offer to the public by 25 percent.

Fortune recently published an article by Warren Buffett where the Oracle of Omaha divides the investment world into these three asset classes:

Seventy-five percent of financial advisors believe they can beat the market using tactical asset allocation strategies that shift money among different investments in an attempt to time the market according to a recent Jefferson National

I recently read a piece by Jim Parker a Vice President at Dimensional Fund Advisors entitled “Hedge of Darkness.” Parker notes “Big money can be made from hedge funds.

Year-end is always hectic but it’s well worth taking the time to consider a few investment moves that could have positive tax ramifications.

We all enjoy playing a game we can’t lose but investing in the stock market is not one of them. However the promise of “guaranteed returns” led shell-shocked investors to pour nearly $30 billion into index annuities in 2009 even as they pulled $9 billion out of U.S. stock funds.

If buying low and selling high is the secret to investing success should you buy every time the market drops significantly?

With Paranormal Activity 3 setting records at the box office it’s a good time to talk about how fear can impede sound investment decisions. Certainly the acute market volatility we’ve experienced over the last few years has sparked a growing fear among investors of incurring additional losses. How does this attitude impact your portfolio?

Many investors believe step one in dialing down their portfolio’s risk should be reducing equity exposure. Yes stocks are riskier than bonds but that’s an oversimplification that can result in some misguided moves.