As a kid who played whatever sport was in season, when the weather didn’t cooperate, I brought that passion inside to the latest sports video game. It was routine for me to battle my friends in games such as Madden NFL, NBA 2K, MLB The Show, and FIFA. Even the NHL made an appearance from time to time, which was peculiar for a southern kid in the 1980s.
One of the most popular aspects of these games is the ability to create a player. The create-a-player function, as it is commonly called, allows for nearly limitless customization. Your player can be tall, short, big, or small. They can be your doppelganger or look wildly different. Once created, they can be drafted and controlled like any other player, allowing the average Joe to live vicariously through their creation.
The idea of creating an ideal player got me thinking about the equivalent from an investment perspective.
Read More
Topics:
Systematic Investing
Not 2008, not the early 1980s, but 2022 was the worst year for bonds on record, according to an analysis by investment historian Edward McQuarrie.
That’s more than a headline for financial advisors who have relied on fixed income as the less-volatile portion of their 70/30 or 60/40 portfolios – especially for their retirement-age clients. It’s a breakdown that can have lasting effects on those who can afford it the least, unless the advisor has a strategy for mitigating the risk of those impacts.
Read More
Topics:
Systematic Investing
Just one of these scenarios likely would be enough to cause concern for an investor:
- Potential end of the post-Global Financial Crisis secular bull market in equities
- Prospect of the first sustained rising U.S. interest rate environment in more than 40 years
- Highest inflation level in four decades
Yet in 2022, we’re facing all three at once. It’s a potentially catastrophic combination, especially for investors nearing or in the early years of retirement.
In my opinion, this is a “perfect storm” (yes, I know that’s a super cliché saying – even I cringed when typing it). And it demonstrates how the need for a more modern approach to retirement income has never been greater. It also motivated my colleague, Brandon Langley, and I to embark on a research project into different approaches to sustaining clients throughout retirement. Today, we’ve released our findings in a new white paper available to financial advisors, “An Advisor’s Guide to Protecting Retirement Income.”
Read More
Topics:
Systematic Investing
When we travel by air, my wife usually points out that she thinks it would be better if people by windows boarded first; that way, anyone in an aisle or middle seat wouldn’t have to keep standing up. Meanwhile, I think the Southwest Airlines style of pick-any-open-seat is optimal.
Our “gut feelings” were recently rendered irrelevant when we ran across an old episode of “MythBusters.” In it, the cast built a mock 173-seat aircraft and tested several boarding approaches using real people and luggage.
Relying on the data cut through the emotional biases. It also inspired me to take a similar data-backed look at a common question I hear about systematic investing: Is this style of investing capable of reacting fast enough to declining markets?
Read More
Topics:
Systematic Investing
A friend recently convinced me to watch a new(ish) Netflix documentary, “14 Peaks: Nothing is Impossible.” It follows a Nepalese mountaineer who attempts to climb all 14 of the world’s peaks higher than 8,000 meters in less than seven months.
Read More
Topics:
Behavioral Finance