Inflation Autopsy Report

Posted by Brandon Langley on 3/27/24 9:27 AM

Back in 2021, as inflation rates broke out from their long-term range, we discussed a study by the Man Institute about strategies for inflationary times. Now that prices appear to be stabilizing, we can look back and ask, “How did these assets do?”

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Topics: Systematic Investing

But the Market Always Comes Back…Right?

Posted by Jon Robinson on 2/27/24 6:36 PM

A common argument used against tactical asset management in favor of more passive approaches is that the market always comes back.

We applaud the optimism. However, we believe building an investment portfolio that assumes the market will always come back is like putting all the chips on black in a game of roulette. It’s also a terrible way for financial advisors to approach risk management in their client portfolios.

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Topics: Systematic Investing

How to Improve the Odds You Are Hired By New Clients

Posted by Mike Carlone on 1/24/24 9:00 AM

Plenty of quantitative measures support the oft-cited analogy between a financial advisor and a football quarterback. Football players view the quarterback as a leader on the field and in the locker room while investors look to their advisor for guidance and reassurance throughout the year. Quarterbacks call a play that fits the situation on the field while advisors help select investments appropriate for the client’s circumstances. 

A study released last year by Morningstar Behavioral Research took this comparison a step further by offering a quantitative rationale. The report sheds light on the significance of understanding behavioral finance, as well as the pivotal role emotional factors play in nurturing the client-advisor relationship.

I want to guide you through key findings from the study and provide insights about how you may be able to utilize this knowledge in your practice.

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Topics: Advisor Practice Management

Meteorologists With 8% Accuracy Would Be Fired

Posted by Brandon Langley on 1/11/24 8:55 AM

Every year on the day after Thanksgiving, my family makes a two-hour drive west to the mountains of North Carolina on the hunt for the perfect tree to celebrate the holidays. It is no doubt one of my favorite family traditions. 

Our tree-chopping outing just happens to coincide with the start of one of my other favorite pastimes: finding humor in the financial services industry’s annual predictions season!

At Blueprint Investment Partners, our team loves predictions. Not to make them, but to make fun of them. The idea that the average asset manager, let alone investor, can consistently predict the direction of any market or instrument reliably enough to beat a passive index over a long time period is in a word: cute.

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Topics: Systematic Investing

Trend and Value Walk into a Bar...

Posted by Jon Robinson on 12/18/23 2:30 PM

"Nature uses only the longest threads to weave her patterns, so that each small piece of her fabric reveals the organization of the entire tapestry." –Richard Feynman

One of the most common questions we hear about our systematic investing philosophy is the comparison of trend following to value investing. We welcome these questions. As trend followers and devotees of both Charlie Munger and Ed Seykota, we see common threads in contrasting investment philosophies.

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Topics: Behavioral Finance

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