investing

Measuring performance in the investment business is absolutely necessary.  But far too often, evaluating performance itself causes investors to make wealth destroying decisions.  This is a phenomenon I’ve witnessed throughout my career.    

Things change quickly – and more drastically than many think…

There was a good article in The Wall Street Journal on December 5, 2014 titled “16 Rules for Investors to Live By.”  One of the rules in particular struck a chord with me.  Rule 6 said:

Things change quickly—and more drastically than many think…

One of the lessons I’ve learned over the years is that a critical part of my job is setting expectations. Since late 2012, US stocks have really marched steadily upward with no major pull-backs. This type of market environment tends to create a false sense of security.

It is utterly amazing how little volatility we’ve witnessed in the stock market over the past six months. The world seems to be a more dangerous and unstable place every month. Think about the big geopolitical events happening right now: