Investing


“Lord, what fools these mortals be!” –Puck, A Midsummer Night’s Dream As a young investment advisor, I got my first taste of what psychologist’s call, very appropriately, Fear Of Missing Out, (FOMO) with the Beanie Babies craze.  In 1995 a new and novel tool, the internet, became widely available to Americans.  This new technology, which encourages and fosters crowd behavior, no matter how irrational, created the first internet...

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“To reduce risk, it is necessary to avoid a portfolio whose securities are all highly correlated with each other.” Harry Markowitz – American economist Given the past 3 years of S&P 500 returns (31% in 2019, 18% in 2020, and 29% in 2021), many investors may be suffering from “recency bias.”  The term recency bias refers to the tendency to place too much emphasis on recent events.  For example, you may be inclined to chase last...

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“Bitcoin is like anything else: it’s worth what people are willing to pay for it.”Stanley Druckenmiller – American investor, hedge fund manager, and philanthropist Cryptocurrency gained mainstream acceptance and attention as the market cap surpassed $3 trillion in November 2021.  Bitcoin, the world’s most popular cryptocurrency, reached all-time highs in 2021 as the value exceeded over $65,000 per coin.  In January 2022, Bitcoin...

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By Lee Sherbakoff, CPA/PFS™, CFP®, RICP® After a three-year rally, the S&P 500 index has been down 10 of the first 15 trading days of 2022. This is nearing correction territory for the year, which is being down 10%.  In addition to the stock market decline, inflation has been causing concerns. Because inflation is reaching 40-year highs, it is expected that the Federal Reserve will begin raising interest rates in the spring,...

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By Lee Sherbakoff, CPA/PFS™, CFP®, RICP® We’ve all heard of the tortoise and the hare. The hare is quick and sure-footed, while the tortoise is slow and cautious. They enter into a race, and the hare is certain he will win—so certain that he decides to take a nap midway through. The hare oversleeps, lo and behold, the tortoise wins the race! From this simple fable came the age-old advice: Slow and steady wins the race. Though it’s...

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By Lee Sherbakoff, CFP/PFS, CFP, RICP  The reality is you owe taxes whenever you make money—or, in IRS terms, when you’ve realized gains. After selling an investment at a higher price than what you paid for it, capital gains tax is waiting right around the corner for a slice of your profit. But there are ways to minimize what you owe in taxes so you can keep as much profit as possible. However, before you do anything, always seek...

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