The market sell-off that began in late February has continued through mid-March. For all of us, this is arguably the least important aspect of the crisis, with the health and safety of our loved ones and fellow citizens the most… Read More
If you have been following the news over the last few weeks, then by now you are aware that 1) there is a novel coronavirus spreading around the globe, and 2) global stock markets have been selling off as a… Read More
We generally have two major behavioral biases to overcome when managing the AMM Dividend Growth Strategy: Loss Aversion Loss Aversion is the bias that losses weigh heavier on our thinking than gains. Take the following example from behavioral economist Daniel… Read More
As we write this letter the US Stock market is down ~ 9% year-to-date and off ~16% from its all-time highs in September. Times like these tend to remind investors of the inherent risk in investing. However, the volatility evidenced… Read More
The craze surrounding cryptocurrencies and initial coin offerings is an echo of the South Sea Bubble that hit England in the early 1700s. South Sea Bubble The South Sea Bubble wasn’t just a bubble related to trade involving the South Seas,… Read More
Each position in your portfolio has a target weight, or ideal position size based on initial purchase. Around a position’s target weight we also assign a minimum and maximum tolerance band. Since positions are in constant fluctuation, the tolerance bands… Read More
In the aftermath of Donald Trump’s surprise presidential win a lot of people are shocked and upset. They are upset for a lot of reasons, mostly personal and political, but I would like to add one more. The framing effect…. Read More
The hunt for yield in a low-interest rate environment has pushed conservative income investors out of Treasury and corporate bonds and into dividend paying stocks. “Bond-like” equities. So many income seeking investors have moved into dividend paying utility and consumer… Read More
Before last Friday Nintendo’s shares increased in value by 56% based on the popularity of Pokemon Go. The meteoric rise in Nintendo’s share price is a great example of the Substitution Heuristic. The Substitution Heuristic happens when we’re faced with… Read More
The behavior gap in effect. In 2015, the average equity fund investor lost 2.3%, lagging the S&P by 3.7 percentage points. While that sounds awful, it’s actually a slight improvement in form. Over the past 20 years the lag was… Read More
For those of you who have been paying into Social Security for your entire working careers, the day when you finally retire and begin