We've gained an outstanding education on relative strength investing from our friends at Dorsey Wright and Associates. Between their Point and Figure Institutes and daily research, they've taught us an incredible amount about the markets. One of the biggest tools they...
"I can only afford to save $50 a month, that won't be enough to make a difference. Why bother?" I can't tell you how many times I've heard this or a variation of it. It comes up when discussing things like creating an emergency fund, saving for a down payment,...
We fear change. It's a fact. Think about the last time Twitter or Facebook updated its app. How many people initially complained about it? I'm guilty of eating the same thing for breakfast every day, scrambled egg whites with assorted vegetables. Don't even think...
Imagine that you and your family are about to take a cruise to the Caribbean. You'll be stopping in St. Lucia, Grenada, and St. Vincent and the Grenadines. You're excited for what should be an excellent trip, but upon boarding you find out that the ship is taking on...
If you've ever eaten at a buffet, you probably know what the naive diversification heuristic is without even realizing it. Let me explain. When I visit a buffet, I end up taking a little bit of everything so I don't miss out on the restaurant's best dish. It always...
"It's okay to be wrong, it's not okay to stay wrong". Maybe you've heard some variation of this saying before? It's one of my favorites, as it applies nicely to all facets of life, especially investing. A common reason many of us decide to "stay wrong", rather than...
As humans, we're all affected by different behavioral biases. We often let emotions dictate our actions, which can lead to unfavorable outcomes. These inherent biases make rational investing a difficult task. The endowment effect is one such bias that works against us...
Recency bias is one of many cognitive errors that plague investors. It refers to the human tendency to overemphasize more recent data. The recency bias is most likely to be discussed in the realm of behavioral finance, however this bias can be found in every day life...
We all spend inordinate amounts of valuable time stressing over things we cannot control. This is especially true for investors. No matter how hard we try, we cannot control what the market does. The market will do what it wants to, when it wants to. Here at Mullooly...
This morning at our daily research meeting, we discussed something that several clients have brought up to us recently: it's June and the Dow Jones Industrial Average and S&P 500 are barely positive for the year. While it is important to monitor your portfolio's...
