Tag: Action Point

AVOID THE UNDERPERFORMANCE TRAP

January 10, 2014

AVOID THE UNDERPERFORMANCE TRAP

Investors chase performance: buy when funds are hot and sell when they cool off

How to avoid the underperformance trap?

  • Invest with a fund manager who suits your investment style.
  • Don’t chase performance
  • Buy incrementally

MAKE SURE YOU HAVE SOME “BORING” INVESTMENTS IN YOUR PORTFOLIO

January 3, 2014

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PUT SOME OF YOUR INVESTMENTS ON AUTOPILOT

November 15, 2013

PUT SOME OF YOUR INVESTMENTS ON AUTOPILOT

THE TARGET-DATE FUND APPROACH:

> Rebalance between stocks and bonds

> Buy when prices drop

> Sell when prices rise

Takes the emotion out of investing

CONSIDER QUANTS

October 18, 2013

CONSIDER QUANTS

Consider adding mutual funds run by reputable and leading edge quantitative research and strategy firms.

Two masters of the art:

– Cliff Asness of AQR Capital Management
– Andrew Lo of MIT and AlphaSimplex Group

AVOID INVESTMENT LOSSES

September 27, 2013

AVOID INVESTMENT LOSSES

Avoid Investment Losses Rules:

– Buy quality companies selling at deep discounts

– Invest with shareholder friendly managers

– Keep some insurance in the form of cash and gold for portfolio protection

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