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Passing Shots

The Fifth Set Blog

Topics: Fiduciary, Investor Behavior, Uncategorized

Independent Investment Advisor Firms and the Paycheck Protection Program – Fifth Set’s View

As the U.S. and rest of the world continues to struggle with the global COVID-19 pandemic, the Paycheck Protection Program (PPP), a federal loan program designed to help small businesses in the U.S., has created a conundrum within the independent Registered Investment Advisor (RIA) community.  …read more »

Great Stock Market, Horrendous Economy, What is Happening Here?

From March 24th, 2020 through May 26th, 2020, the stock market, as measured by the S&P 500, returned 36%.  That is not typo.  Over the same period of time, we have seen a torrent of terrible economic news. For example, on April 24th, the Congressional  …read more »

What is Wrong with Selling Now and Getting Back in When Things are Calmer: Nothing! But Not for the Reason You Think.

Why not sell out and get back in when things are calmer?  That is the question many investors are asking as the Coronavirus-provoked market volatility continues.  At first glance, it may seem obvious why that is a bad idea.  The wisdom of holding on and  …read more »

Six Quick Thoughts on the Coronavirus Market Meltdown

As I sit to write this post, the Dow Jones Industrial Average is down just less than 1,000 points.  Concerns around the impact of the Coronavirus on both human lives and economic growth is dragging down global equity markets.  Investors are understandably concerned about what  …read more »

Long-Term Equity Returns – A Reasonable Expectation

As we begin the new decade, I thought this would be a good time to consider what a reasonable long-term equity return expectation might look like. While not particularly helpful for short-term strategies, setting long-term expectations has several benefits for investors including: Long-term planning –  …read more »

Buy Low and Sell High: Simple but Not Easy

Buy low, sell high…maybe the most obvious axiom in investing.  It seems so obvious, yet in practice, most investors have difficulty buying the worst-performing assets or selling the best-performing assets.  “Wait…you want to sell this thing that’s been going straight up so we can buy  …read more »

A Good Time to Review Investor Biases

Investors (all of us) are hard-wired to make poor investment decisions.  Among other biases, we become over-confident when markets rise and assume the worst will continue when markets fall. We assume we have special knowledge about companies we work for or live close to or  …read more »