Market Ethos - December 18th, 2017 Published by Richardson Wealth Asset Management on Dec 19, 2017 The Anatomy of a Bubble Please note this will be the last Market Ethos until the New Year. In the final installment of 2017, we have taken a deeper look at historical bubbles from Tulips to rails to dotcom. Many of these bubbles have commonalities and... Read more
Market Ethos - December 11th, 2017 Published by Richardson Wealth Asset Management on Dec 11, 2017 Performance Chasing Did you know the average investor’s annual return is about 2% below the average fund return? Much of this variance is attributable to chasing performance, as assets pile into a fund that has had a good performance run just to see that... Read more
Market Ethos - December 4th, 2017 Published by Richardson Wealth Asset Management on Dec 04, 2017 Profiting from Investor Misbehaviour Bit of a different ethos this week. Over the past year we have been developing investment strategies based on behavioural finance. Specifically, strategies designed with the objective of profiting from the behavioural... Read more
Market Ethos - November 27th, 2017 Published by Richardson Wealth Asset Management on Nov 27, 2017 The Search for Alpha Alpha is the goal of most investors, adding performance over an appropriate risk adjusted benchmark. In this edition we theorize where does alpha come from, who is on the other side of everyone’s trades and some implications on the... Read more
Market Ethos - November 20th, 2017 Published by Richardson Wealth Asset Management on Nov 20, 2017 Market Cycle: Let the good times roll This week we provided an update on our Market Cycle framework. With 26 of the 30 indicators bullish, we have not seen this many in the green in a long time. US & Global economic data is strong, fundamentals are improving... Read more
Market Ethos - November 13th, 2017 Published by Richardson Wealth Asset Management on Nov 13, 2017 Avoiding Behavioral Pitfalls In this edition, we highlight historical evidence that indicates how our own behaviors often hurt our long term investment success. We specifically delve into Confirmation Bias and Loss Aversion, discussing how it impacts... Read more
Market Ethos - November 6th, 2017 Published by Richardson Wealth Asset Management on Nov 06, 2017 CFOs Loosening Purse Strings After a long hiatus during which excess cash flow was largely returned to shareholders via share buybacks and dividend increases, it would appear corporations are starting to spend again. This is a welcome change and should... Read more
Market Ethos - October 31st, 2017 Published by Richardson Wealth Asset Management on Oct 30, 2017 Active vs. Passive: When, Where and Why to be Which If the 1990s were the age of the mutual fund, this has got to be the age of the ETF, given fund flows and rising popularity. However, since some funds are more active than others - defining active as... Read more
Market Ethos - October 23rd, 2017 Published by Richardson Wealth Asset Management on Oct 23, 2017 When is a sell really a buy While it may feel better to invest in a company that has 8 analyst buy ratings relative to a company that has 2 buys, 5 holds and a sell, but you may be suffering from a behavioral bias. There is less regret by investing in... Read more
Market Ethos - October 16th, 2017 Published by Richardson Wealth Asset Management on Oct 16, 2017 The Sweet Spot Impressively, the markets have been marching to new highs of late despite a backdrop of rising geopolitical risks. We believe this is because the market and economy has entered a bit of a sweet spot, with rising global economic activity... Read more