Why You Should Have a Financial Advisor

Writing my last few posts, about the real possibility of lower returns over the next few years, I got to thinking about how financial advisors add value—and how a skilled advisor can really help investors advance toward their financial goals. Click the photo to see...

Looking at Future Portfolio Returns

The past two days, we’ve considered the likelihood that future returns for bonds and stocks will be disappointing. Now, we get to the punch line: what does this mean for our own investments? And is there anything we can do about it? Click the photo to see the full...

Looking at Future Stock Returns

Yesterday we talked about future bond returns, noting that while bonds have done very well over the past several decades, current conditions suggest their returns over the next 10 years could be significantly lower. Today, we’ll focus on stocks, making the same...

Looking at Future Bond Returns

You’re probably familiar with the standard investment disclaimer “Past performance is no guarantee of future results.” In other words, just because something worked in the past is no reason to assume it will work in the future. This is true: asset classes, in...

Lower Yields: Not the Typical Risk-Off Trade

With all of the headlines about interest rates hitting record lows—and with the worries about why this has happened and what it means—it is important to put some facts and context around what, in many ways, is an unprecedented set of circumstances. The following...

What the Bond Market Is Telling Us

Yesterday, we talked about what the stock market is really saying. Briefly, despite all of the bad news out there, the stock market has not collapsed and the world is not coming to an end, at least in the short term. This, of course, is good news—but an absence of...