Predictable Mistakes
We believe that investors increase their chances of success by avoiding predictable mistakes, those practices that sound like they should work but have been shown time and again to have very low probabilities of success.
We believe that investors increase their chances of success by avoiding predictable mistakes, those practices that sound like they should work but have been shown time and again to have very low probabilities of success.
In the first six months of 2024, NVIDIA has seen its stock price appreciate by just under 150%, which represented about 1/3 of the total gain of the S&P 500 in the same period. For those investors who did not own NVIDIA, they are likely experiencing ROMO. This week, Kent Kramer analyzes concentration of value and performance of the global stock market.
International Stocks – Are they necessary?
We believe that investors increase their chances of success by avoiding predictable mistakes -- those practices that sound like they should work but have been shown time and time again to have very low probabilities of success. This week, Kent Kramer examines different studies to help inform our fifth investment principle.
Investors have been puzzled this year, maybe even disappointed, that the bond market broadly has seen negative returns. How can this be when many money markets and bonds have stated yields of more than 5%? This week, Kent Kramer explains why.
No one can time the market and determine when those best months will occur. The best months are surprisingly random. More important than timing the market is time in the market.
A wise investor will advance with science to increase the probability of good investment outcomes. This week, Kent Kramer shares examples of how advances in finance and economics have impacted investor experience.
Have you heard the words, “value” and “growth,” when it comes to investing? Let’s face it: These words are often misunderstood and poorly utilized.
Has Artificial Intelligence been causing you anxiety, or made you wonder about the trustworthiness of investment markets? Be reminded that “educated optimism is an antidote for anxious uncertainty”.
You may find yourself asking, "Why should I be invested outside the US, when the US market is doing so well relative to foreign stocks?" This week, Kent Kramer explains how this question can be answered by understanding risk management, global opportunities, and the currency effect.
In this week's special edition of Financial Perspectives, Kent Kramer has a conversation with 2022 Morningstar Outstanding Portfolio Manager award winner, Mary Ellen Stanek, who is managing director and co-chief investment officer of Baird. In this conversation, Kent and Mary Ellen cover everything from market history and trends to surprising interviews.
Trying to time the market and choosing to sell in reaction to headlines tends to be a predictable mistake. There always seems to be a reason to sell.
If you are a client of Foster Group and have met with your advisor recently, you may have discussed what’s important to you, what we are planning for as it relates to your goals, and what you hope to achieve.
In the NCAA tournaments, uncertainty and underdogs pulling off the impossible upset of a top-ranked team is a certainty. This week, Kent Kramer observes how we can learn from March Madness and apply those observations to investing.
The benefit of a diversified investment portfolio is that, while again we do not know who the actual winners and losers will be, the risk of excluding the best is greatly reduced.
The world is, and has always been, a surprising and uncertain place. This week, Kent Kramer dives into Foster Group's foundational investment principle #2: Embrace Uncertainty. He provides four positive reasons to embrace uncertainty and two big dangers of not embracing it.
Many people are apprehensive about the markets, whether we’re in a bear market or a bull market. The fear of a market correction is always present.
Sometimes headlines are right, but remember they are created to get your attention, not necessarily to provide you with helpful information.
In this week's edition of Financial Perspectives, Kent Kramer covers everything from basketball and movies to Nobel Prize winners and a unique investment journey with Dave Butler, Co-CEO of Dimensional Fund Advisors.
Watch "Tune Out the Noise": https://film.dimensional.com
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There are parallels between concepts in finance and concepts in physics. Let's take a look.
Last year was a very up and down year in the market. That’s not abnormal. In fact, it’s what happens most years. December 12 was the only time last year that I looked at the numbers. In not looking at the numbers throughout the year, I not only minimized worry, but also created the opportunity for a happy surprise.