The Yield Paradox

Geoff Considine

I have been struggling to understand a problem that I am going to refer to as the ‘yield paradox.’  Yields for individual asset classes look low.  The 10-year Treasury bond is yielding about 1.9%, and 30-year Treasury bonds are yielding a similarly paltry 3%.  The S&P 500 is yielding 2.1%, which is very low by… Read More


Target Date Strategies Over The Last Five Years

Geoff Considine

The intent of target date strategies is to provide investors with fully-diversified portfolios that evolve appropriately as investors age.  Target date funds have enjoyed enormous growth over recent years, not least because the Pension Protection Act of 2006 allows employers to direct retirement plan participants into these funds as the default investment option.  Consultancy Casey… Read More


Perpetually Out of Step

Geoff Considine

There is increasing evidence of big flows of money into equities and leaving bonds.  This is being seen at all levels in the market, including among institutional investors such as pension plans.  The Wall Street Journal just published an article discussing this shift called Are Mom and Pop Heading for Wall Street?   Mutual fund flows… Read More


Folio Investing Celebrates Its Target Date Folios’ Five-Year Record of Outperformance

Geoff Considine

Folio Investing’s Successful ETF-Based Alternative to Legacy Target-Date Funds Offers Superior Diversification, Risk Targeting and Flexibility; Firm Seeks Distribution Partner to Broaden Availability Folio Investing announced today that, over the five years since they were brought to market in December 2007, its Target Date Folios have significantly outperformed traditional target-date funds. The Folios have provided both… Read More


Top Ten Ways to Deal with Behavioral Biases

Robert P. Seawright

Pretty much since the day I wrote it, my Investors’ 10 Most Common Behavioral Biases has been the most popular post on this blog.  It still gets a surprising number of hits all these months later.  Due to the pioneering work of Daniel Kahneman and others, nearly everyone in the financial world acknowledges the reality… Read More


Apple’s Share Price and Behavioral Finance

Geoff Considine

The price of a share of Apple (AAPL) is almost 30% below the high that it set back in September 2012—about five months ago.  Even before its peak, the price of Apple shares had already made it the most valuable company in history.  In those heady times, Apple shares reached $702.  Today, they are at… Read More


One Advisor’s Approach to Income Investing

John Graves

Editor’s Note:  John Graves has been an independent financial advisor for 26 years. He is one of the two owners of The Renaissance Group, a Registered Investment Advisor based in Ventura, CA.  John’s book, The 7% Solution: You Can Afford  a Comfortable Retirement, was published in 2012.  When I read this book, I was impressed… Read More


A Thoughtful Outlook for 2013

Geoff Considine

In general, I ignore the spate of market predictions that experts issue at the start of each year.  There are exceptions, and after reading Jason Hsu’s outlook for this year, I am pleased to recommend it to readers.  Dr. Hsu is the Chief Investment Officer at global money management firm, Research Affiliates.  I found his… Read More


Falling ETF Fees and What They Mean

Geoff Considine

Vanguard has just reduced the expense ratios of 24 of its ETFs.  The reductions are fairly substantial.  What I noticed, in particular, is that the reductions include sector-specific ETFs. The Vanguard Energy ETF (VDE), the Vanguard Information Technology ETF (VGT), the Vanguard Telecom ETF (VOX), and the Vanguard Utility ETF (VPU) each now have 0.14%… Read More