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THE DISTILLERY

What Happens When You Fail at Market Timing

This week’s The Distillery comes from Dimensional Fund Advisors (DFA). If you attended our recent breakfast presentation you know that they trust markets and are not market timers. Enjoy this week’s nice and light piece.

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America’s Decade

This week’s The Distillery matches up quite well with our sentiment regarding investing domestically vs overseas. Historically, investors have been rewarded fairly equally over time for investing in both parts of the world….except for the last decade. Why? Well we don’t know exactly why, and admittedly, the author doesn’t either. This is why markets are so extremely difficult to invest in. You can have seemingly non-rational markets for a decade or longer, to the point in which you finally blurt out, “this time is different!” Of course at that very moment, the markets will have turned the other direction, reversing previous gains dictated largely by the collective emotions of the herd.

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No Shave November – You are invited to participate!

It’s that time of year again, when the days get shorter, but our mustaches grow longer. For the 3rd year in a row, the men of The Advocates will spend the month of November growing out their facial hair for a good cause. However, during this year’s “No Shave November” we present to you a twist! We would like to invite you to join Read More >

The Happiness Advantage: Linking Positive Brains to Performance

This week’s The Distillery is a bit different in regards to the delivery of the content. A few of us from the office attended a financial planning conference in Austin earlier this week. While there, we had the pleasure of attending a presentation by Shawn Achor, a Positive Psychologist who graduated from Harvard University. Shawn’s company, Aspirant, is dedicated to the study of those people in the population who are happier than the average (i.e. the outliers). From his research he aims to gain insight into how to increase happiness for not only the employees of the companies that hire him, but also for those of us who struggle with lower or average levels of happiness.

 

Happiness, or lack thereof, affects not only our personal lives and families, but also how we perform in school and at work, which often determines the success / outcome of our financial plans. If you have 12 minutes of time to invest, we hope you enjoy this captivating video by Shawn Achor.

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Three Big Things: The Most Important Forces Shaping the World

This week’s The Distillery is a long but fascinating read that takes a look at what the author believes to be the 3 “Big Things” that will have a profound impact on the coming decades because they’re both transformational and ubiquitous: Demographics, wealth inequality, and access to information. Enjoy!

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Half of Retirees Afraid to Use Savings

This week’s The Distillery brings up a real issue amongst retirees: spending down their savings. Retirees have worked so hard to save enough money to last them throughout Retirement, but once there, it’s hard to flip the switch in the other direction and begin winding it down. If there’s one takeaway from this week’s piece, it’s that the feeling is pervasive across retirees and you shouldn’t feel alone if you too feel this way.

 

With the weekend fast approaching, we encourage you to go out and feel good about spending that hard earned money, especially if you have a plan in place and your spending is aligned with you and your family’s values 😊

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Are Company Visits Good or Bad?

This week’s The Distillery offers refreshing insight into how much of a competitive advantage (or lack thereof) mutual funds actually have when making site visits to the companies and their executive teams they invest in. By now you should know that we at The Advocates invest specifically with funds that place an emphasis on empirical data and testing, and are implemented through a consistent and disciplined approach. So you can guess which side of the commentary we’re on!

 

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Short Investing Beliefs

This week’s The Distillery should provide a nice break from whatever task you may be entrenched in currently, while also offering just enough thought stimulation to energize you for the rest of your day.

Enjoy!

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Skew Expectations

This week’s The Distillery offers up a good thought exercise for investors by exploring the findings from a recent academic paper which has gained popularity by calling into question the validity of stock picking. The author, Nick Maggiulli, does a good job summarizing the paper’s core thoughts and offering up his own, ultimately asking us to consider time in the overall equation of investing.

 

Enjoy!

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Voting Machines and Weighing Machines

This week’s The Distillery offers an interesting visual theory of market efficiency (prices fairly and accurately reflect all available information). Assuming that markets do eventually become efficient after us emotional beings react to said available information, how long does it take for markets to weigh the remainder of the available information? Days, weeks, months, years? At The Advocates we side on the credibility of 5-10 years, but click the link below to consider other alternative models.

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