Investing Education

Discover a wealth of investing information, articles, tips and advice for how to intelligently manage your risk and increase your returns.

SmartStops Featured Articles

Why Protect? Limits of Diversification from State Street

Great white paper by State Street Global Advisors that highlights the limits of diversification and the importance of risk protection:    "Good downside protection can benefit portfolios in several ways. Studies, such as that by Bhansali and Davis (2010), have shown...

read more

Asset Allocation is in Serious Decline

As the CIO of Sungarden Fund Mgmt writes:  "MPT works well in strong markets and over periods of declining interest rates.  This decade will likely see the turning point of that story, and I suspect that many financial planning firms will fight that trend, as they did...

read more

Lessons From a Trading Great: Stanley Druckenmiller

SmartStops comments:  If you study successful investors, you will find that they don't necessarily follow a diversification rule.  That was created many many years ago with the advent of Modern Portfolio Theory however even MPT has morphed now.  Read more about some...

read more

SmartStops = Smart Beta

Yes, our premise for needing more risk-based approaches in the market has been validated with the rise of Smart Beta ETFs.    As the image below points out - access to "risk premia" previously only available through expensive active strategies in a cheaper way" ....

read more

Markets take the stairs up and the Elevator down

SmartStops comment:  Great article about the nature of our 21st century markets and why one needs to stay protected in a fluid geopolitical environment .  Some interesting graphs are presented. The article concludes:    Perhaps more than any other time in the last six...

read more

Earn higher returns by avoiding the downturns

Just look at how much per share one could save in this example with IBM below.  Stepping aside during a stock's downturn can lead to higher returns overall for your investments especially when you consider that stocks on average will drop ~20% from their highs and...

read more

Why Investors Face Roller-Coaster Markets

This article does a great job at educating mainstream investors and the underlying aspects of our 21st century market.  Written by the Chief Economic Advisor, Allianz and Chair of the President's Global Development Council: Key points: Because today's markets are...

read more

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...

read more

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...

read more

$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...

read more

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...

read more

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...

read more

Should you participate in your company’s 401(k)?

Should you join your company's 401k? Changing jobs often comes with new benefits, pay structure and a different 401(k) plan. Whether or not to join your new company's retirement plan is an important decision that you may have to make several times over the course of...

read more

Is there any truth to the ‘Super Bowl Indicator?’

Should you follow the Super Bowl Indicator?On Super Bowl Sunday, an unlikely group of people may be the most vocal fans at your local bar: Wall Street traders. At this time every year, news pundits and financial analysts often bring up a stock market prediction scheme...

read more

How the next generation of investors views the stock market

Generation X an Y investors are devising strategies on their own.  When thinking about individuals who are concerned about investing and wealth management, Baby Boomers often come to mind. This is a logical assumption, as folks in this age group are nearing or...

read more

Are these financial rules of thumb outdated?

Are you using outdated investing methods?   The stock market changes from year to year, and one would think that the way we should approach investing would shift as well. That doesn't seem to be the case, according to MarketWatch columnist Mark Jafee. In this article...

read more

Common mistakes that investors make with dividend stocks

Despite their ability to generate steady income, dividend stocks were largely ignored by individual investors for decades as they were considered to be old fashioned. During the tech boom of the late 1990s, they became even less popular, as traders were more...

read more
Share This