The Rules of Prudent Investing

Posted by Chad R. O'Connell AIF QPFC

Apr 5, 2017 12:21:25 PM


Overview: The following rules can help investors build and adhere to a well-designed investment plan. These guidelines may be instrumental in giving investors the best chance of achieving their financial goals.

Read More

Topics: investment strategy, diversification, performance

Bond Ladders in a Rising Rate Environment

Posted by Chad R. O'Connell AIF QPFC

Mar 23, 2017 3:57:36 PM

With a glut of information from the financial media, many investors have heard the drumbeat of rising interest rates. Market pundits are predicting higher rates due to rising inflation expectations coupled with an economy that is slowly picking up steam. The Federal Reserve has given more credence to the pundits by increasing the Federal Funds Target Rate twice in its past three meetings, causing investors to ask, “Will my bond ladder protect me in a rising rate environment?”

Read More

Topics: interest rates, bond ladder

An Advisor’s View on the New Fiduciary Rule

Posted by Craig Cirbus

Mar 14, 2017 12:10:54 PM

You may have noticed the word “fiduciary” bouncing around the news lately. The Department of Labor announced last April that financial advisors who provide retirement investment advice would be held to a new fiduciary rule -- that is, they would be required to put investors' interests ahead of their own. This debate has gone on for many years, and the DOL ruling resulted in applause in some corners, angst in others, and spirited dialogue and debate all across the nation.

Read More

Topics: fiduciary rule

A look back at 2016: What did it mean for your portfolio?

Posted by Chad R. O'Connell AIF QPFC

Jan 20, 2017 3:55:22 PM

With Weston Wellington, Dimensional Fund Advisors LP.

Every year brings its share of surprises. But how many of us could have imagined that 2016 would see the Chicago Cubs win the World Series, Bob Dylan receive the Nobel Prize in Literature, Donald Trump elected president, and the Dow Jones Industrial Average close out the year a whisker away from 20,000?

The answer is very few—a lesson that investors would be wise to remember.

At year-end 2015, financial optimists seemed in short supply. Not one of the nine investment strategists participating in the January 2016 Barron’s Roundtable expected an above-average year for stocks. Six expected US market returns to be flat or negative, while the remaining three predicted returns in single digits at best. Prospects for global markets appeared no better, according to this group, and two panelists were sufficiently gloomy to recommend shorting exchange-traded emerging markets index funds.1

Results in early January 2016 appeared to confirm the pessimists’ viewpoint as markets fell sharply around the world; the S&P 500 Index fell 8% over the first 10 trading sessions alone. The 8.25% loss for the Dow Jones Industrial Average over this period was the biggest such drop throughout the 120-year history of that index.2 For fans of the so-called January Indicator, the outlook was grim.

Read More

Topics: portfolio, markets, election, 2016 financial markets

New Market Highs and Positive Expected Returns

Posted by Chad R. O'Connell AIF QPFC

Jan 12, 2017 12:10:59 PM

There has been much discussion in the news recently about new nominal highs in stock indices like the Dow Jones Industrial Average and the S&P 500.

When markets hit new highs, is that an indication that it’s time for investors to cash out? History tells us that a market index being at an all-time high generally does not provide actionable information for investors. For evidence, we can look at the S&P 500 Index for the better part of the last century.

Read More

Topics: wealth management, S&P500, stock markets, election, Dow Jones, volatility, 2017, return on investment

A Post Election Look at the Markets

Posted by Pat Bohen

Jan 3, 2017 4:30:58 PM

Happy New Year!  Patrick Bohen provided his insights to David Robinson of The Buffalo News for a New Year's Day article covering what 2017 may hold in store for the stock market. 

What will 2017 bring for stocks? Local investment advisers make predictions.


As Donald Trump goes, so goes the stock market.

That, in a nutshell, is how local investment advisers see 2017 shaping up.

The president-elect, if he’s able to deliver on some of his pro-business tax and regulation promises, could be a powerful force on Wall Street in 2017. If he can’t, Trump’s failure to cut taxes, ease regulations could lead to widespread disappointment among investors who now are counting on his promises becoming reality.

Read More

Topics: wealth management, new year, Dow, NYSE, NASDAQ, stock markets, current events, election

Quelling Myopic Loss Aversion

Posted by Chad R. O'Connell AIF QPFC

Oct 28, 2016 6:37:00 AM

The Information Age has changed our lives. It has never been easier to access information. Good things have come from this technology: connecting with friends across the globe, communicating with colleagues more efficiently, learning about unusual subjects.

Read More

Topics: wealth management, investing,, investments, investors, investment performance, myopic loss aversion, market performance, dopkins wealth

Comparing Equity and Fixed Income Trade Settlements

Posted by The Dopkins Wealth Team

Apr 1, 2016 6:00:00 AM

Many investors have not thought much about how stock, mutual fund and bond transactions actually settle. In most situations, the securities move in or out of a client’s account electronically. Most securities settle in one to three days after the trade date (commonly referred to as T+1 or T+3). Settlement simply means the securities are delivered in or out of the account on the established date.

Read More

Topics: fixed income, trade settlements, shadow post

New Money Market Fund Rules: What They Are and What We Think

Posted by The Dopkins Wealth Team

Mar 24, 2016 3:31:38 PM

In 2014, the Securities and Exchange Commission (SEC) released new money market fund rules. Effective by October 2016, the biggest changes pertain to their liquidity and who can hold certain funds.

Read More

Topics: money market funds, retail money markets, institutional money markets, net asset values, money market fund rules, NAV

An Individual Bond Ladder Versus a Bond Fund

Posted by The Dopkins Wealth Team

Mar 15, 2016 8:00:00 PM

Many investors are worried about how rising interest rates will affect their fixed income portfolio. Many believe an individual bond ladder better protects them against rising rates because they can see each bond mature. This is a common misnomer. An environment of rising rates will have a similar effect on the value of an individual bond ladder as it will with a bond fund of similar duration and credit quality. Interest rate risk is measured by duration, which measures the sensitivity of a bond’s price to a change in interest rates. For example, a portfolio with a four-year duration will lose 4 percent of its value if interest rates increase by 1 percent (or vice versa).

Read More

Topics: fixed income, bonds; fixed income, bond fund, bond ladder, individual bond ladder

Join Our Mailing List