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
The Great Divide Between Stocks & The Economy – a Macro View
SmartStops Comments: This article from RealInvestmentadvice.com shows that with data going back to 1947, the stock market and the economy will deviate from each other, for a short period of time. The question is do stocks move back down to where the economy is or...
How to Hedge your Downside in the Stock Market with ETFs
If you went into this COVID crisis without taking the stock risk warnings SmartStops was alerting you of in late February 2020, then you may unfortunately have fallen into the Buy, Hold & Pray model. So now with a rebound in April, you begin to wonder...
Corona Virus and Stock Market Plunge- where do we go from here?
SmartStops comments: Great article highlighting Bob Farrell, a legendary investor, is famous for his 10-Investment Rules to follow. Rule #8 states: Bear markets have three stages – sharp down, reflexive rebound and a drawn-out fundamental downtrend Bear markets...
The 6 Biggest Mistakes Ordinary Investors Make
"What's the biggest threat to achieving financial independence? Your own brain!" Nobel-winning prize theory and research from psychologists (Kanheman & Tversky) led to the beginnings of what is now called behavioral finance, with Thaler bringing that into the...
Aviva finds sell-side research to be flawed – October 2017
Survey of 342 analysts by Aviva Investors found sell-side research to be flawed, short term and incomplete. “Sell-side research has a significant influence on investors’ decision-making. But our study shows this research is often flawed,” wrote Euan Munro, CEO of...
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...
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...
Wealth management’s future in 3 words
"There are serious consequences for firms that do not embrace the latest tech tools..." says Kelli Keough, the global head of digital wealth management for JPMorgan Chase. "All financial advisors must implement digital tools in their practice or they will lose...
How to stop getting ill from the Stock Market
SmartStops Comment: Good article pointing out the importance when it comes to investing to not letting your emotions go on a rampage. As the author Ritholtz points out: "Understanding what is and isn’t in your control can go a long way toward avoiding the sorts...
Is there something to be afraid of with the increased volatility in 2018?
SmartStops comment: This well-written article reflects the reality of the situation of today's markets. Don't be fooled to think diversification is protecting your investments. Stay aware of increasing risks. Read the entire article at: ...
Should the Treasury Index The Calculation of Capital Gains Taxes To Inflation
SmartStops comment: It appears that both Bush & Reagan had been discussing reforms to the capital gains tax, however nothing was done. Is Trump also now considering it? Some pundits claim this will help stimulate the economy further and redistribute the wealth...
WARNING! Time to protect your Investments!
Now don't say no one's warned you about an upcoming stock market correciton. It's inevitable. So are you going to protect your gains or what?! https://www.bloomberg.com/news/articles/2017-11-29/goldman-warns-highest-valuations-since-1900-mean-pain-is-coming
Are Markets Rational or not?
SmartStops comment: Glad to see Richard Thaler win the 2017 Nobel Prize for documenting the way people's behavior actually does not conform to economic models that portray them as perfectly rational. As he states: (Investors) "refuse to cut their losses on...
DIY’er investors are doing better then clients of Financial Advisors!
SmartStops comment: just came across this interesting point that indicates the DIY'ers are doing better then clients of Financial Advisors: .. These added services (education etc. from brokerage) seem to be helping, as self-directed investors tend to see quite a bit...
The Higher They Climb, The Harder They Fall
SmartStops comments: It's befuddling that this statement continues to get touted around - "But isn’t this market timing? We all know, after all, that timing the market is pure folly!" .. when indeed guru's like Andrew Lo, MIT have blown this "myth" apart again and...
Less Risk. More Caution.
LESS RISK. MORE CAUTION. Good point by Howard Marks of Oaktree Capital on the markets these days: "It’s all about investors’ willingness to take risk as opposed to insisting on safety. And when people are willing to take risk , and not concerned about safety...
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...
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" ....