Are Company’s Profit Reports “Phony?”

SmartStops Comment:  This is why you always need a smart objective third party managing the risk of your investments. as reported by the AP: Those record profits that companies are reporting may not be all they’re cracked up to be. As the stock market climbs ever higher, professional investors are warning that companies are presenting misleading versions of their results that ignore a wide variety of normal costs of running a business to...
Modern Portfolio Theory is Harming your Portfolio

Modern Portfolio Theory is Harming your Portfolio

SmartStops comment:  an excellent article that every investor should read as MPT continues to be deeply entrenched in our systems.  Its shortcomings are proven.  The article concludes with: The advice that most investment advisors give their clients – At its core, the message is usually something similar to this: “The markets are random and unpredictable, so the best way to invest is to properly diversify and wait for the averages to play...
$1M more in your IRA by avoiding major losses

$1M more in your IRA by avoiding major losses

SmartStops Comment:   Modern Portfolio Theory  – continues to have holes poked in it.  Here’s a post by Hedgeable reiterating the importance of missing the worst times in the market. From their post:  If you merely miss out on 75% of market losses during the two largest crashes of the past 25 years- the dot-com crash and the financial crisis crash- you will have $1 MILLION MORE IN THE AVERAGE IRA ACCOUNT!!! BaseBall fans will like...

Why You Should Shift From Profits To Protection

SmartStops Comment: We couldn’t agree more with this author. From Seeking Alpha, Contrarian Profits The bulls are back out in force, as the hiccups from a few weeks ago seem a distant memory. Indexes have resumed breaking records on a regular basis, and all seems right with the world. Great – trust me, few things make me happier than a happy market. I like making money as much as the next guy. But I’m also a little more suspicious than...

Is Your Advisor Adequately Explaining All Your Risk?

Market Risk? Interest Rate Risk? Liquidity Risk? Volatility Risk? Credit Risk? A new article by Paula Vasan titled “Talking About Risk? Advisors, Industry Must Do Better”, takes the industry to task claiming investment risks are not well understood by advisors and not being well explained to clients. Be aware when your risk is on the rise with SmartStops.net Equity Risk Alerts.