Category: Investments

Investors are routinely warned about allowing their emotions to influence their decisions. However, they are not often cautioned that their preconceptions and biases may color their financial choices.

In a battle between the facts & biases, our biases may win, especially when we don’t realize we have them. If we acknowledge this tendency, we may be able to avoid making unexamined choices when it comes to personal finance. It may actually “pay” to recognize blind spots and biases with investing.

Here are some common examples of bias creeping into our financial lives.

Rare collectibles can provide an entertaining form of alternative “investment,” and might seem particularly intriguing when markets are wobblier than Aunt Gertrude’s jello salad. Comic books can sell for millions of dollars, for example, depending on their rarity and condition. We’ve seen a copy of Detective Comics #27 (the first appearance of Batman) sell at $1.5 million.

By Ryan Brooke

The topic of Bitcoin and other cryptocurrencies has come up more recently in meetings with clients, friends and family who want to know, “what is all the buzz about?”

High net worth investors face investment challenges that some would consider unique to their financial status. The fundamental tenets of investing apply equally to them as with any other investor, but the affluent investor needs to be mindful of issues that typically arise only from substantial wealth.

Don’t put all your eggs in one basket. It’s a colloquial saying we’ve heard many times, and it’s an important one when it comes to your investment strategy. We know diversification makes good sense and can help you reach your long-term goals. But occasionally, a certain stock will come along that can make you throw disciplined investment principles out the window. Sometimes, the allure of individual stocks is just too attractive to the average investor.

By Marc C. Shaffer

Skip the bad days? It sounds like a great concept.

How many of you would choose to skip right over 2020? If only we all had perfect foresight – both in life and with finances.

Here’s one thing we know about investment markets: in election years, years where we experience a pandemic, years that are filled with big news and years that are calm…they fluctuate.

By Marc C. Shaffer

Retirement. It is arguably one of the most talked about “goals” people save for, so much so, that short term goals can often get overlooked. Short term and long-term goals are not the same and treating them the same could mean some important considerations might be missed.

Now that several major news groups have projected Joe Biden the winner of the presidential election—and Congress appears divided with Democrats in control of the House and Republicans the Senate—it’s a good time to review what type of legislative support would be needed to pass certain proposals.

In August of 2020, Federal Reserve Chair Jerome Powell announced a change in how the Fed views inflation. In the past, the Fed said it would consider adjusting short-term rates when inflation approached 2 percent. But in light of 2020’s many challenges, the Fed’s new policy may allow inflation to run above 2 percent for a period of time before any shift in monetary policy is considered.

With all of the storm and stress of the year 2020, you’d be forgiven if you momentarily forgot that we’re due for another national election in November.

Many states will be selecting governors, representatives, and senators, while the country itself will be voting in the presidential election.

However, now that the major party presidential tickets have been solidified, we will likely be hearing more and more political discussion in the coming months.

How are you feeling these days?