TAG: Investor Behavior

A total return approach to generating portfolio cash flow helps balance risk and return, enabling a portfolio to meet retirees’ long-term spending needs.

Many investors wonder if index funds’ popularity has made markets less efficient, thus improving the environment for stock-picking and market timing. While index funds have grown, the majority of dollars remain invested in actively-managed strategies.

Why do so many investors attempt to beat the market each year when research clearly shows their odds of success are extremely low?

In early February, investors withdrew record amounts from U.S. stock mutual funds, as fears spread over declining global growth, stubborn unemployment, and political and economic troubles in emerging markets. Such turbulence highlights the role safe bonds can play in a portfolio.

The NCAA Basketball “March Madness” Tournament offers plenty of investment parallels. After the entries are submitted and the tournament is completed, a winner is crowned. Does the “winner” have more skill than others – or is it just luck?