
Improving Investor Behavior: Mind Your “Owned” Businesses
We try to differentiate the value of a company (worth) versus the price. When you focus on the value of the company, your judgment is far more intelligent.

An Emotional Tour de Force
This last week has been a roller coaster for investors with large, swift swings in the broad market indices. It began with an announcement from the Federal Reserve on interest rates and the White House levying additional tariffs against China, which was then followed by a tit-for-tat spat between the two countries. A devaluation of the Yuan, the U.S. labeling China a currency manipulator, and a drop in the bond market yields all served as reasons for the corresponding drops.
All that to say, a lot has happened in the span of a few days.

Midyear Outlook 2019: FUNDAMENTAL: How to Focus on What Really Matters in the Markets
LPL Research Outlook 2019: FUNDAMENTAL: How to Focus on What Really Matters in the Markets is filled with investment insights and market guidance for the year ahead.
LPL Financial Research believes that even as investors face prospects for…

Improving Investor Behavior: Retire to What?
If I asked you to define retirement, how would you describe it? Take some time and think about it. You’re probably envisioning white sandy beaches, trips to the golf course, and visits with family, free from the constraints of work and email.…

Improving Investor Behavior: The Positive Mindset of Investors
Pessimism is poison for investors. Following national headlines would have you
believe we are moments away from catastrophe, teetering on the edge of sheer doom. It’s an easy narrative in which to engage, especially when we hear it every…

Improving Investor Behavior – Doubt, Sold with a Smile
Financial advice is usually broken into three steps. First, define your goals. Where do you want to go? Next comes a plan. This is the recipe for working toward your goals with actionable and measurable steps. Then comes implementation when…

Improving Investor Behavior – Know the “Why” for your Investments
As financial advisors, we receive questions about all types of investments. Here’s one we recently heard:
I am a doctor, and many of my friends and fellow doctors are getting into real estate. There is a group that invests in local…

Improving Investor Behavior – Learn to Love a Falling Market
The financial markets have given investors quite a ride in the past few months. Not only have we seen a drop in the prices, but the volatility and multiple-percentage point days seems to have investors feeling a little seasick. The first thing…

Improving Investor Behavior – Focus on the Right Number
With the year coming to an end, 2018 has been a tumultuous one for investors. For the first time in 46 years, there has not been a clear winner in any asset class: from stocks to bonds, emerging markets to precious metals. As of this writing,…

Improving Investor Behavior – Managing the Pain of Regret
Regret may be the most enduring and damaging emotion investors grapple with during their financial lives. As financial advisors we see it from both sides: clients either regret having done something, or regret NOT having done something, or…

Improving Investor Behavior: Managing Your Fears
Shark Week is among the longest running and most popular cable programs in history. First appearing 30 years ago in 1988, the show has since been watched and celebrated by millions. Why would a program about sharks and their danger be so popular? I think it plays on the emotion of fear, and more interestingly, people’s desire to be a little bit scared.
My point is this: sometimes our greatest fears are the most unfounded. Whether it’s an oversized fish or monsters under the bed, our worst fears take up an oversized portion of our conscious and drive actions that can be damaging and counterproductive. Fear is a powerful emotion and one you must learn to rein in if you want to be a successful investor.

Anxiety and Investing: Taking the Fear Out of Finances
The chances that either you, a loved one, or a friend have had an incident with, or an ongoing relationship with heightened anxiety are likely. Almost 20 percent of the population expresses some sort of anxiety disorder in a lifetime. It comes…

Improving Investor Behavior – Fear of Missing Out
When you are stuck in traffic on the interstate, creeping along, do you find yourself wanting to switch from one lane to another? Do you glance to the left and see the “fast lane,” and are envious of how quickly they are moving? You look…

An Open Letter to Employers
There is a national debate right now on how to make 401k plans more effective for retirement plan participants. The question isn’t “how do we supply the workforce with access to retirement savings vehicles?”, but rather “Why are so few employees taking advantage of these important benefit offerings?” In the end, it’s about a lack of familiarity and trust.

The 8th Wonder of the World – Compounding Interest
I would like to take a look at the concepts of compounding and inflation. The principles of the two are identical. One works for you in a positive growing way, the other in a silent negative manner.