MFA Insights

Does the rocky start indicate poor returns in 2016?

Posted by on Feb 12, 2016 in MFA Insights

Global markets are off to a rough start this year. Some media outlets are suggesting the negative results so far in 2016 might provide a good indicator to the direction of the market for the full year. The attached Dimensional Fund Advisors research finds the opposite is more common. Market declines of 10% and 20% are normal and are typically followed by decent returns so selling after such a decline (i.e. now) usually makes little sense. While a current decline can feel like an air pocket on an airplane, from a historical perspective the losses we are experiencing aren’t unusual and are the necessary expected cost of earning long term returns in excess of bank CDs. Please read the attached article and let us know if you have any questions or comments.

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Sept 2015: What can past market declines teach us?

Posted by on Sep 11, 2015 in MFA Insights

Living with a market decline isn’t easy and are the last thing most investors want to experience, but they are an inevitable part of investing. Perhaps a little historical background can help you put stock market declines in perspective. Usually we write our own newsletters but we received the following well written article from American Funds about market volatility and wanted to share it with you.

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Aug 2015 : 5 Things Investors Shouldn’t Do Now

Posted by on Aug 22, 2015 in MFA Insights

This very short article by Jason Zweig at the Wall Street Journal captures the essence of the advice we have been sharing with clients about market downturns.... Stocks slumped world-wide this week, with U.S. and European markets off more than 5% and the Shanghai Composite Index losing more than 11%. Oil prices also skidded, dropping more than 6%. Traders feared that slowing growth in China, the devaluation of the Chinese currency and the overhang of too much debt could stifle global economic recovery. Here are five things you should know about how not to react...

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May 2015: Beneficiary Designations: Out of Sight Out of Mind?

Posted by on May 30, 2015 in MFA Insights

Estate planning must rank right up there with gum surgery as the type of chore in life that we are most likely to want to put off. We have trouble even saying the word “death”, as inevitable as it is for us all. So regardless of when we “check out” or “kick the bucket”, we are likely to leave a mess if proper planning isn’t in place. Estate Plans (wills and trusts) are an important part of the process, as are having life insurance in place. Yet a topic that often gets less attention that it deserves is beneficiary designations...

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March 2015: Advisor or Salesperson?

Posted by on Mar 4, 2015 in MFA Insights

Advisor or salesperson?  Clients may not know if their financial representative is subject to a weaker “suitability requirement” of the salesman or the stronger “fiduciary standard” of a Registered Investment Advisor (RIA).  Marin Financial Advisors is a RIA firm, regulated by the SEC and therefore subject to more transparency and laws that require us to put our clients’ interests ahead of our own. Brokerage firms and banks including such well known firms such as Merrill Lynch, Morgan Stanley, Wells Fargo Advisors and UBS do not act as advisory firms.  Instead they are subject to...

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December 2014: Is Diversification a Drag?

Posted by on Dec 11, 2014 in MFA Insights

Recent performance across asset classes has led some clients to wonder out loud if we should have less money allocated to bond and emerging market stock funds. This is an understandable reaction to a 5 year period when pegging all of your investment dollars to the US stock market has provided the best return.

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