2018 Q2: Sustainable Investing
Over the years we have quietly evolved our investment philosophy and holdings so as to be able to focus our investment towards those companies doing the most good (and least harm) for the planet and for society.
In doing so, we have become leaders in this approach to incorporating environmental and socially responsible criteria into building client portfolios. In fact, MFA is one of the top investors in the sustainable funds of Dimensional Fund Advisors’ (“DFA”).
Read MoreJune 2018: Guessing Jelly Beans
Have you ever seen that game where the goal is to guess the number of jelly beans in a jar? When you look at the range of guesses, you’ll find a huge disparity – some people’s guesses are surprisingly low while others’ are much too high. Yet, something amazing happens when you take the average of everyone’s guesses: The average guess ends up being right on.
This effect is referred to as “The Wisdom of the Crowds.” The term, coined in the book by James Surowiecki, proposes that the collective intelligence of a crowd can exceed that of any of its individuals.
The wisdom of the crowds is very relevant to investing.
Read More2018 Q1: Round trip to tax time
The First Quarter’s Round Trip The global stock markets started the year off with a bang and by the end of the first quarter of 2018 they were back to a touch below where they started the year. After roaring up 6% to 8% in January, various global markets ended the quarter modestly down: U.S. stocks were down -0.61%, international stocks were down -1.18%. In the meantime, various bond market indices were also down slightly (flat to down about -1.5%). Over the past 12 months, overall diversified returns were about where we would expect with a large variance in returns. Bonds were flat or down...
Read MoreFeb 2018: Welcome Back Volatility
After an unusually long run of particularly calm and rewarding markets, volatility is back. Looking back, 2017 offered an especially mellow ride for investors. The largest daily drop in the S&P 500 in 2017 was -1.82%. The largest daily gain was 1.37%. And the index ended the year up 18.7%. 2018 began in the same vein as January produced 10 record highs in 13 days. All this calm and all of these positive returns may have lulled investors into feeling that this was normal (“Hey, we could get used to this!”) Then, with more drama than an Olympic downhill run, volatility returned in the last...
Read More2017 Q4: Are we floating in a bubble?
Happy New Year! We enter 2018 after an exceptional year in the global stock markets. The U.S. market delivered a whopping 21% while global developed and emerging markets outdid that, delivering 24% and 37% respectively.1 It’s common to experience that good news with mixed emotion. On the one hand, you celebrate a generous year in portfolio returns. On the other hand, you might be wondering if markets are now getting overpriced and whether you should be cutting back your stock allocation or even getting out altogether. The emerging field of behavioral finance gives us lots of insight into why...
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