Public Wi-Fi Security

wi-fi-internet-routerPUBLIC WI-FI IS REMARKABLY CONVENIENT, making it possible to connect your tablet, laptop, phone, or other device in the middle of a national park, at a local bookstore or café, or while waiting for a flight. Whenever you’re connecting in a public venue, remember public Wi-Fi is not secure – even if you’re paying to access it. Norton warned:

“…Wi-Fi uses radio waves. The openness of these signals at public hotspots, combined with the right eavesdropping software, can allow others to take information without your knowledge – much like someone overhearing a private conversation in a crowded restaurant. Continue reading

Olympic Medal Facts

London 2012 Olympic Gold - Photo by James Cridland via Flickr

London 2012 Olympic Gold – Photo by James Cridland via Flickr

AN OLYMPIC MEDAL IN ANY OTHER SHAPE STILL REPRESENTS A GREAT FEAT. In 1900, the Olympic games were part of the World’s Fair in Paris. Champions received square medals! Olympics.org reported:

“The 1900 Olympic Games are perhaps the most unusual Olympics in modern history. They have been termed, with the 1904 Olympics, ‘The Farcical Games.’ Continue reading

Rates are DEFINITELY Going Up… at Some Point… in the Future

fire exit in red wallLast week, Wall Street was speculating about monetary policy with the enthusiasm of commentators trying to predict who will bring home Olympic gold.

The Federal Open Market Committee (FOMC) is expected to introduce another rate hike before the end of 2016, according to the BBC, and it has just three opportunities to deliver the goods – during its September, November, or December meetings. Continue reading

Method To The Investing Madness – Portfolio Structure Matters!

Investment Timing and Investment Selection receive the lion’s share of media attention… but they don’t necessarily add value for readers and viewers. When financial media does  break away from the timing and selection conversation, they usually reach for the Index solutions – “Don’t buy individual securities, just buy the index.” Again, Buffett and Bogle are big proponents of this method largely because it can protect investors from their own bad timing and selection decisions.

But, we have to remember that how an index is constructed matters a great deal to that indexes “performance.” And, most indexes weight their underlying holdings differently. Many index based products rely on market capitalization as their method of weighting the individual holdings within the index and this portfolio structure has an effect on performance. In a period of time when larger companies do better, this method SHOWS very well. But, historically it has also gone through periods of under-performance. The key is understanding that Index Weighting Methodology is a portfolio structure decision that matters to client outcomes.

I totally agree with the concept behind the broad diversification afforded by “owning the index,” but I also believe the evidence supports a portfolio structure methodology that improves client outcomes. In this video, I talk about index construction and about alternative methods of weighting broad market holdings that evidence suggests will provide benefits to long-term investors.

Method To The Investing Madness – Why International Diversification Matters!

“Every dog has its day” is a proverb that, loosely translated, means everyone will have good luck or success at some point in their lives. The reverse, unfortunately for investors, is also the case.

Every portfolio, at some point (perhaps at many points) will “under-perform.” There is nothing that can be done in terms of predicting it and the more activity that surrounds avoiding it – the more likely investors will be to hurt themselves permanently.

Everyone LOVES their portfolio when it is doing well, but the critical behavioral moment for any client portfolio is when it isn’t. This is when people begin to ask themselves whether they have the right plan in place and start to consider that they may need to make a change.

Now is just such a time for the diversified investor. If you are committed to diversification, as I am, then you have under-performed as you have continued to hold foreign stocks and perhaps small company stocks over the last few years when big, domestic (for the U.S. investor) companies have done so very well. And, you may be asking yourself these questions. If you have, please watch the video and make sure you understand this immediate past performance differential within the context of history.

The S&P 500 has been out-performing relative to it’s international and small company peers since 2011. If you had owned international companies or small capitalization companies, you would be under-performing the most vivid of American Stock Market indexes. The fear of missing out and the concern that we may have made a mistake is making investors question their commitment to diversification. At the same time, many pundits (including John Bogle and Warren Buffet) suggest one should concentrate in your home market (The S&P 500).

However, you can see in the video, the evidence suggests that immediate past performance is a poor criterion for selecting investments and Jonathan DeYoe warns investors against the siren song of concentrating their portfolios in that which has done well in the immediate past. There is a reason and lots of data that suggests continued international diversification is valuable to long-term investors.

Measuring “Value”

measuring valueHow do you measure “Value” in the stock market?

If you look at conventional measures – like price-to-earnings (P/E) ratios – then U.S. stock markets appear to be pricey. The Wall Street Journal reported trailing 12-month P/E ratios are high when compared to 10-year averages.

High P/E ratios haven’t dampened investors’ interest in U.S. stocks, and share prices have been moving higher. The Dow Jones Industrial Average (Dow), Standard & Poor’s 500 Index, and NASDAQ all reached new highs last Thursday – the first time that has happened since 1999. Continue reading

2016 Half-Time Report 3 of 3 – Where We May Be Going

2016 Half-Time Report – Where We May Be Going

Jonathan K. DeYoe, a 20 year veteran of capital markets, discusses the global markets and events that effected the global economy up through mid-year 2016 and offers some of his ideas on how those events might unfold and impact global markets in late 2016 and beyond.

In an effort to provide as much transparency to our investment process as possible, Jonathan has been recording his market and economic insights twice a year for nearly a decade. You can see the entire history HERE.

2016 Half-Time Report 2 of 3 – Where We Are

2016 Half-Time Report – Where We Are

Jonathan K. DeYoe, a 20 year veteran of capital markets, discusses the global markets and events that effected the global economy up through mid-year 2016 and offers some of his ideas on how those events might unfold and impact global markets in late 2016 and beyond.

In an effort to provide as much transparency to our investment process as possible, Jonathan has been recording his market and economic insights twice a year for nearly a decade. You can see the entire history HERE.

2016 Half-Time Report 1 of 3 – Where We’ve Been

2016 Half-Time Report – Where We’ve Been

Jonathan K. DeYoe, a 20 year veteran of capital markets, discusses the global markets and events that effected the global economy up through mid-year 2016 and offers some of his ideas on how those events might unfold and impact global markets in late 2016 and beyond.

In an effort to provide as much transparency to our investment process as possible, Jonathan has been recording his market and economic insights twice a year for nearly a decade. You can see the entire history HERE.

Living Up To Expectations

father daughterHAVE YOU LIVED UP TO YOUR PARENTS’ EXPECTATIONS? 

In early August, The Harvard Business Review published an article about an unexpected source of career conflict: parents! Stew Friedman, the article’s author, who is a Wharton professor and founding director of the Wharton Leadership Program wrote:

“…business professionals at various stages in life, from college students to mid-career executives, talk more about their mothers and fathers than their spouses and children as sources of career conflict. Here is a small sampling of what I’ve heard:

• ‘My parents have always made me feel that my accomplishments fall short of expectations; I’m a disappointment to them Continue reading