Just keep swimming.

(Image copyright Disney, Inc.) Being an investor over the past two years has been tough.  You did everything right.  Bought great companies, stayed diversified, and yet, the results have been “meh.”  It’s probably one of the most frustrating things, because now you question everything…the principals of investing, diversification, the economy, your advisor, the government, and so on.  The more I …

The good, the bad, and the ugly.

  This was a common T Shirt around campus.  Sometimes the “bad” was Tennessee and the “ugly” was Louisville.  Other times the Florida Gators or Auburn Tigers would be on the shirt.  However, Kentucky never moved (and will never move) from that top spot and for very good reasons (not that I am biased or anything). I know I just …

Goodbye, 2015. Hello, 2016.

Chart Source: Morningstar.com For investors, 2015 felt an awful lot like 2011.  The charts above show the S&P 500 index (large cap US equities) in orange and I think you’ll be able to see the similarities.  Though the returns during these years were nearly identical, the reason behind them is not.  In August of 2011, the US credit rating was …

Relativity

“Escher’s Relativity”. Licensed under Fair use via Wikipedia – https://en.wikipedia.org/wiki/File:Escher%27s_Relativity.jpg#/media/File:Escher%27s_Relativity.jpg I have always envisioned my brain as a series of hallways with numerous doors.  If I let my mind wander, I feel as though I am ambling through an endless maze, peeking in doors to see what thoughts or ideas await me.  There are a few doors that are boarded …

Midyear Outlook 2015: Some Assembly Required

Few things can dampen the excitement of seeing the delivery of a long-awaited package on the porch than three words—“some assembly required.” Whether it is navigating the confusing instruction manual, sweating through the complicated assortment of parts, or the sinking feeling that you don’t have the right batteries in the closet, sometimes the hard work comes after the delivery truck …

THIS IS A TEST

Before reading this, watch the video…It’s only 81 seconds long, so just play along. Did you watch the whole thing?  How many did you count? Now I know you’re thinking, “What does this have to do with investing?”  In one word: Everything.  In the information age, we are inundated with news and headlines from around the world every second of …

Some Thoughts on Bonds and Interest Rates

In honor of the Avengers franchise having another record breaking weekend, I thought this meme was appropriate after my daily perusal of the CNBC headlines.  Sometimes I just can’t. even. deal. IMPORTANT! Should investors dump their bonds? Bonds are the scariest thing out there Tech is overhyped…except when it’s underhyped That’s just a few of the fun headlines of today, …

“The sky is falling!” – Chicken Little

In elementary school, my Spanish class put together a short theatrical reproduction of the Chicken Little story.  I think we all got to take turns being Chicken Little, fearfully stating “El cielo se esta cayendo!”  I was reminded of Chicken Little’s plight today while watching the markets fall apart and the headlines that were being conjured up.  “Perfect Storm for …

Is diversification dead?

‘Sometimes you have to use your failures as stepping-stones to success. You have to maintain a fine balance between hope and despair.’ He paused, considering what he had just said. ‘Yes’, he repeated. ‘In the end, it’s all a question of balance. – Rohinton Mistry, A Fine Balance If you follow my blog long enough, you will come to find …

Some Thoughts on Oil

“Come and listen to story ‘bout a man named Jed Poor mountaineer barely kept his family fed Then one day he was shooting for some food, And up through the ground come a bubbling crude. (Oil that is, black gold, Texas Tea)” –The Ballad of Jed Clampett The Beverly Hillbillies.  The 1960’s sitcom that became an iconic part of American …