Human beings have an astounding facility for self-deception when it comes to our own money. We tend to rationalize our own fears. So, instead of just recognizing how we feel and reflecting on the thoughts that creates, we cut out the middle man and construct the façade of a logical-sounding argument over a vague feeling. These arguments are often elaborate, short-term excuses that we use to justify behavior that runs counter to our...
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Back in June, Seth wrote a blog noting Dimensional’s receipt of the top Stewardship Grade from Morningstar. I’m giving Seth’s piece a little spike here…and if you haven’t yet read the written rating on Dimensional, I would recommend it (you can do so by clicking here). It is a good overview into what makes DFA different. Their tie to the academic community and resulting intelligent design and execution of...
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Stock prices in markets around the world fluctuated dramatically for the week ended August 27. On Monday, August 24, the Dow Jones Industrial Average fell 1,089 points—a larger loss than the “Flash Crash” in May 2010—before rallying to close down 588. Prices fell further on Tuesday before recovering sharply on Wednesday, Thursday, and Friday. Although the S&P 500 and Dow Jones Industrial Average rose 0.9% and 1.1%, respectively, for the...
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If you are a social media user, you constantly see friends updating their posts, tweets, snaps, and photos. As you see these updates, you may feel obligated to fit in with the social media users by creating these same types of updates. Here is a short list of the yearly “required” postings:
Foster Group is thrilled to announce our move from 1001 Grand Avenue to 6601 Westown Parkway, a larger facility in West Des Moines. Our relocation stems from our need for additional space to accommodate growth in demand for the firm’s services. With this move, the company’s space increases in size by 20%, allowing us to best accommodate clients...
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While the human lifespan is ever-increasing, the average lifespan for a publicly traded company in the US is going in the opposite direction. According to the Boston Consulting Group, 30 years can be expected (on average) for a publicly traded firm to stick around. This is a significant decrease from the 45-year average lifespan of publicly traded companies back in 1985. Today, nearly 10% of public companies fail annually, and...
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A recent survey by Bankrate.com asked investors what they felt would be the best investment for money they would not need for at least another ten years. Here are the results:
27% Real Estate
23% Cash
17% Stocks
14% Precious Metals
5% Bonds
24% Other/Unsure
Some wildly different opinions, especially at the top, with first and second prize representing opposite ends of the liquidity... Read More
Recently my family spent a week in Haiti together, helping brighten the day for 63 orphans. We shared Bible stories, went to the beach, and even made it snow on the Caribbean island! A trip like this helps put a lot of the things we worry about in perspective. 1) Maintain proper perspective: What I saw was consistent with what I heard recently from Dan Ariely, a Behaviorial Economist, who found...
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If you were asked back in 2010 which sector of our economy would perform the best over the next five years, what would your guess have been? Multiple choice: Consumer Discretionary (businesses that sell non-essential goods and services), Consumer Staples (businesses that sell essentials), Energy, Financials, Health Care, Industrials, Information Technology, Materials (companies involved with discovery, development and processing of raw materials), Telecom Services, and Utilities. If asked to guess...
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Anyone been paying attention to what’s been going on with China’s stock market? It’s been hard to miss lately, with all the headlines. Here’s just a few from the last week (all the same day): • How China’s stock market bubbled…then burst • Bets Rise That China’s Yuan Will Fall • Chinese stocks end lower after wild swings • Why we should...
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