Why do people think investing is easy? For a variety of reasons investors sometimes draw incorrect conclusions regarding investment strategies. In many cases it is difficult, or impossible to know if an apparently successful method was, in fact the cause of the successful, or unsuccessful outcome. Appearances can be deceiving. Consider the hypothetical case of the fraudulent investment newsletter writer. … Read more →
About insurance…
Insurance is about risk management. Insurance is a device to manage risk. So, what is risk? Risk is a condition in which there is a possibility of an adverse deviation from a desired outcome that is expected or hoped for.¹ For example, the desired outcome for most families would be that both parents remain healthy and able to provide for… Read more →
Other life insurance questions.
There are other questions that must be answered when considering the purchase of life insurance. Questions like: Who should own the policy? Who should the beneficiary(s) be? How should the premiums be paid? These questions and others will be discussed in a subsequent blog entry. Related Posts: About insurance… Read more →
Investor behavior.
A study done by Dalbar, Inc., a financial services research firm, found that most investors who move in and out of their investments have a much lower long-term total return than those who employ a buy and hold strategy. The study, entitled the Quantitative Analysis of Investor Behavior, examines real investor returns from January, 1984 to December, 2000. Read more →