You cannot watch a baseball game these days without hearing about a batter’s launch angle. Launch angle is the measurement of a batted ball’s vertical trajectory. Since 2015, hitters have begun optimizing their swings for the ideal launch angle (25-35 degrees). This is because research has shown that balls hit within that range are more… [Read More] Today’s Edges, Tomorrow’s Table Stakes
We believe that an investor's behavior can seriously impact their market returns. This category page is dedicated to informing our readers of certain behaviors that are known to damage investor's returns over time. We also discuss strategies to avoiding these damaging behaviors.
I just finished reading AstroBall, the story of how the Houston Astros baseball team was torn down and re-built from the ground up. Good story, quick read, and written by Ben Reiter of Sports Illustrated. Reiter was the author of a Sports Illustrated cover story that predicted – in 2014 – that the Houston Astros… [Read More] Four Reasons Why Carlos Beltran Would Make a Good Advisor
Creating a portfolio without making an investment policy statement means failing to acknowledge that investing is an emotional endeavor. For those of you who don’t know what an investment policy statement is, let me begin with a story: In Homer’s epic, The Odyssey, the hero Ulysses must sail past the Sirens to reach his home.… [Read More] Why You Need an Investment Policy Statement
Historically speaking, recessions have been bad for stocks. One way to “catch a glimpse” of whether the economy is nearing a recession is to follow the index of Leading Economic Indicators. Examples of “leading” indicators would be: Jobless claims, Wage growth (or a lack of wage growth), What are purchasing managers doing, How is consumer confidence? Thanks… [Read More] Is the Index of Leading Economic Indicators Useful?
What’s in a name? For a lot of businesses, the actual name of the business is not what is most important. What did ‘google’ mean before there was Google? ‘Amazon’ was just the name of a rainforest before Jeff Bezos turned it into the behemoth it is today. ‘Facebook’ would just be two nouns put… [Read More] The Financial Therapist
Risk management is a topic we hear a lot about when it comes to investing. Its popularity tends to ebb and flow based on recent market performance. This seems intuitive to me because when the risk we’re trying to manage doesn’t occur, risk management often looks like a sunk cost. Conversely, when a risk we… [Read More] Risk Management vs. Return Management