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Passing Shots

The Fifth Set Blog

Topics: Asset Allocation, Bonds, Efficient Market Hypothesis, Evidence-Based Investing, Fiduciary, Fixed Income, Index Investing, Investor Behavior, Long-term investing, Portfolio Management, Uncategorized

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 »