Recession “Reaction”
Category: Investing
Plenty of arguments exist as to why we will be and/or already are in a recession. However, there is good news out there that isn’t readily reported.
Bear Markets and Life Jackets
Category: Investing » Asset Allocation
For anyone invested right now, it feels like we’re sinking. But just as boats have lifejackets to keep you afloat, your financial life should have its own lifejackets in place to help keep you from sinking in bear market times like these.
Thinking About Stock Market Volatility
Category: Investing
What caused the stock market to rise by over 20% in the second quarter of 2020 even as the COVID pandemic was out of control? How about the over 11% rise in the fourth quarter of 2021 as inflation ticked up and the Fed was warning of rate increases? It seems a little more obvious why the US stock market has fallen in the first 6 months of 2022, but should it have fallen more…or less?
What to Do When the Market Is in a Bad Mood
Category: Investing
When the going is good, we’re not all that concerned with asking or answering the question. It is when the going gets tough, like right now, that we find ourselves more interested in asking. So, “What should we do?”
Nervous About the Market? Maybe You Need a Lifeboat.
Category: Investing
Market volatility tends to unnerve even the calmest of investors. How do we know what to hold and how much to hold at any particular time? That’s a crucial question, but the answer does not need to be complicated.
Are You in the Bear Market Buyer’s Club?
Category: Investing
For the person who is currently contributing to a portfolio and does not need to take distributions anytime soon, this is a gift. That’s right, a bear market is a gift to those investors. If you are contributing to an investment account right now, you are already in the Bear Market Buyer’s Club.
Chart of the Month – July 2022
Category: Investing
Sooner or later, we're likely going to see demand cool off. The big question is how quickly inflation alters consumer spending and how quickly that pulls back inflation.
What Does It Mean to Be an Investor? – Part Two
As you peek into the future – hopefully one with greater discretionary time and money – do you envision yourself increasing or decreasing your investment in the well-being of the people close to you and the world in general? Do you see yourself sticking close to the mess of the world or investing in ways that escape it?
A Few of My Favorite Things
Almost everyone has a few of their favorite things. One of my top questions to ask friends and clients is, “What are some of your most treasured memories and keepsakes?”
Inflation Aware Investing
Category: Investing
You know the old saying, “What goes up must come down.” Currently everything seems to be going up at the same time.
10 Obstacles to Investing – and How to Overcome Them
Category: Investing
In the following article David draws on his years of experience talking with investors and academics alike to address some common hesitations all investors face from time to time.
Do I Have Portfolio Exposure to China?
Category: Investing
In recent weeks, China has been a part of US financial headlines for a number of reasons. At Foster Group, we believe in globally diversified model portfolios. We invest our equity portfolios across domestic markets, international markets, and emerging markets. Our models have equity exposure to over 51 countries.
My Top 9 + 1 from Morgan Housel’s The Psychology of Money
Category: Investing
Morgan Housel, author of The Psychology of Money, spent some time with us last month. Here are my takeaways.
Barbell Portfolios Can Be Hard To Hold On To
Category: Investing
Barbells work great at the gym because they put weight on a bar in such a way that it’s balanced, leaving room in the middle for someone to use it to workout. We often see portfolios that are designed like a barbell at the gym: lots of risk in one account and lots of cash or very short-term securities in another. In aggregate, it might produce some balance, but the reality is that it can create some real challenges.
The Influence of Trust
Category: Financial Planning » Behavioral Finance
A good relationship with our clients comes down to a handful of things. One of those things is whether a client trusts that we know more than they do about the type of investing we do at Foster Group.
Investment Policy Statement – Why Is It Important?
Category: Investing
It is important for all investors, whether an individual, family, retirement plan, or nonprofit, to plan their investment approach around their goals and objectives. Investment Policy Statements (IPS) often document these items. Here are four reasons why it is important to have a clearly articulated IPS.
An Investment Portfolio Is Like a Good Smoothie
Category: Investing
Recently, I rediscovered the benefits of homemade smoothies for breakfast. They are nutritious, natural, easy to make, efficient, and delicious! This morning, I was thinking about how a good investment portfolio is like a good smoothie!
DraftKings Knows More About You Than You Know About You
Category: Investing
For 12 seconds, consider what a company knows about you and their own profitability if they are willing to offer you a $500 risk-free bet to get started. That’s what DraftKings just promised me in a commercial. Sounds awesome, doesn’t it? OK, the 12 seconds are up. What did you come up with?
Equilibrium Markets in the Time of COVID
Category: Investing
Over the years, Foster Group has utilized a number of mutual funds and exchange traded funds managed by Dimensional Fund Advisors (DFA). DFA was founded in 1981 on the idea of making academic investment research and empirically based portfolio management accessible to investors. In this article, Professor Kenneth French describes how markets responded to the events surrounding the COVID-19 pandemic.
Two Dimensional Mutual Funds Will Be Converted to Exchange Traded Funds on September 10th
Category: Investing
Two Dimensional Fund Advisors (DFA) mutual funds that are held in after-tax accounts managed by Foster Group at Charles Schwab and TD Ameritrade will be converted by DFA to Exchange Traded Funds (ETFs) on Friday, September 10th.
Two Dimensional Mutual Funds Will Be Converted to Exchange Traded Funds on September 10th
Category: Investing
Two Dimensional Fund Advisors (DFA) mutual funds that are held in after-tax accounts managed by Foster Group at Charles Schwab and TD Ameritrade will be converted by DFA to Exchange Traded Funds (ETFs) on Friday, September 10th.