Behind the Curtain: My Path to MCM

After graduation in 2010 from Central Michigan University (CMU), I knew generally what I wanted from my career: to enrich people’s lives by helping them invest their hard-earned, hard-saved money. However, I didn’t have a clear idea how I would do that or how many different career paths were available within the investment management landscape. For example, there are firms that sell financial products such as mutual funds, insurance, and annuities, and there are firms that manage the money directly as a professional service, aka money managers. I knew of these different paths from my studies in college, but I was unsure which was right for me.

Continue reading “Behind the Curtain: My Path to MCM”

Investment Strategy: Gender-Based Differences

Men own penny stocks on Mars and women have a money market account on Venus.

At least I think that’s how the saying goes…

Okay, maybe not quite like that but the point is, there are noticeable differences between genders when it comes to investing strategies. Many of these came to light just recently, since for years it was the norm for the men to handle most couples’ finances. As women became a bigger presence in the work force, waited longer to get married and couples began divorcing more frequently, women found themselves solely in charge of their own finances. Once they began to invest, based on their own values and goals, it became evident they (typically) invest much differently than their male counterparts. As an investor, a professional investment adviser and a woman myself, this idea is intriguing to me, so I decided to explore these differences…what they mean…and what to do about them.

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Do You Robo? There’s An App for That

Could this be the golden age of the mobile app?  Maybe.  Only time will tell.  What is clear is that mobile application software (“app”) is transforming everything from how we reserve a table at our favorite restaurant to how we track our activity, sleep, health and much, much more.  Financial services like banking, personal finance (e.g., budgeting, bill-paying), and investment management, are participating in big ways in the mobile revolution.

To that end, automated investment platforms called robo-advisors are proliferating rapidly.  Nearly all major brokerage firms, mutual fund companies, and even some banks have an up-and-running robo-advisor solution for their customers.  They have intuitively appealing names like “Intelligent Portfolios” etc., and they use a simple algorithm to automatically re-balance portfolios back to a fixed asset allocation determined by each user.  In a nutshell, robo-advisors are an automatic, set-it and forget-it, mobile investment technology aimed at the mass market. Continue reading “Do You Robo? There’s An App for That”

Share buybacks. Good, Bad, or Ugly?

Publicly-traded companies buying their own shares (share “buybacks” or “repurchases”) increase earnings per share by reducing the total number of shares outstanding (identical earnings spread over fewer shares).  It’s commonly positioned as “returning value to shareholders,” because investors who maintain their shares end up owning a larger percentage of total company shares; in turn owning a larger percentage of future earnings.  As of February 10th, S&P 500 companies have announced plans for $99 billion dollars of share buybacks in 2016.   The largest start to the year ever.  Get ready to receive some serious value!

Not so fast – Continue reading “Share buybacks. Good, Bad, or Ugly?”

Learn to Be a One-Man Wolf Pack

“…Well all my friends were doing it!”

“If all your friends jumped off a bridge, would you too!?!”

As kids, we all had some variation of this conversation with our parents, right?

So, as adult investors, we know that we shouldn’t blindly purchase a stock just because everyone else is, right? Unfortunately, no. Over time, individual investors consistently buy-high and sell-low, despite trying hard to do the opposite. The root of this trend is that, even after lectures from mom and dad, human beings find comfort in numbers.

“But Mommmm, everyone else is buying that stock!!”

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Panic is Not An Investment Strategy

U.S. stock performance was up ~6% in March, lifting equities out of correction mode after January’s sharp sell-off. But is that enough to restore the investor confidence that’s been lost? Volatile times like these can make or break successful investment strategies.

Shattered investor confidence can lead to a self-fulfilling prophecy, like bear markets or corrections, even as leading economic indicators are signaling a much less dire scenario. Continue reading “Panic is Not An Investment Strategy”