Trailing vs Rolling Returns

In a world of instant updates and daily stock market news, investors often fixate on chasing short-term returns or “beating the market.”


25 Years in Risk Management

Quick – where were you 25 years ago?


Don’t Fight The Tape In 2022 – Hedge The Tape Before It’s Too Late

The 2022 investment year is now well underway and financial advisors and investors would be well advised to not, as the old saying goes, “fight the tape” of what is shaping up to be a difficult year for the stock market.


Implications of the Fed’s Policy Shift for Investors

The Federal Reserve signaling a shift in monetary policy is causing a shift in the markets that have run hot on many years of stimulus and low rates.


Investors and Advisors Are Compelled to Consider the Hard Economic Realities Facing the Financial Markets

As investors and financial advisors approach the end of 2021 and consider their annual recalibration of portfolio mix for the coming year, they would be prudent to factor in some difficult economic realities that can no longer be ignored–that will alter stock and bond performance into and well past 2022.


Inflation Or Not, The Bond Market Is No Safe Haven For Investors

Everyone was eager to put 2020 behind us, yet the Covid hangover lingers.


Advisors Must Rethink What a Modern Portfolio Looks Like

The last month has been a particularly choppy one for markets, with the CBOE Volatility Index (VIX) spiking more than 80% during October. It’s clear the combination of rising interest rates, mounting trade tensions and looming recession fears are setting in.

White Paper

Rethinking Investment Returns & How Math Impacts Results

Do investors really understand the math behind investment returns? Many investors make their investment decisions based upon emotions like fear and greed. They do not understand the math that drives successful long-term results and why this is important. Understanding the core mathematical principles driving investment returns can help investors make better investment decisions. The paper will focus on four core, interconnected mathematical principles, all of which are instrumental to achieving better investment results over time: 1. The importance and power of compounding 2. The value of avoiding large losses 3. The importance of variance drain 4. The importance of a non-normal distribution of returns These core principles are often overlooked, ignored, or misunderstood by investors and will be explored in this paper for the purpose of strengthening the decision-making process. There are a lot of misconceptions amongst investors as it relates to equity investment returns, hedged equity returns, and the math behind them. The goal of this paper is to establish that certain mathematical principles support the usage of a hedged equity approach over other traditional equity approaches for long-term investment growth.

The Mathematics of Diversification

Although it is certainly possible to go overboard with the mathematics when it comes to portfolio optimization, we will keep it simple and straightforward in this discussion.

Seeing the Forest for the Trees: The Role of Investment Yield in a Portfolio

Chasing Investment Yield or Total Return - How investors may be missing the big picture when chasing yield from fixed income in a low yield world.