SEM applies a Behavioral Approach to Investing. Our total portfolio approach is designed to overcome the most common behavioral biases. To understand the importance of this we need to first understand the biases. About two years ago I posted a video clip from one of our client seminars where I
After 20 years with SEM I should not be surprised to see how many people get sucked into the late stages of a bull market. We all have heard the key to investing – “buy low, sell high.” Unfortunately, our brains typically trick us into forgetting this wisdom.
Unlike the January employment report, the April report did not have any blatant data points that caused a “crash”. With average earnings only rising 0.1% myopic market participants celebrated the lack of wage inflation, hoping this will allow the Fed to take a few more months off
Last week’s Chart of the Week discussed “Conservatism” bias where we tend to fail to incorporate new information into our assessment of the current and future environments. I pointed out the tightening spread between long-term and shorter-term Treasuries as well as the jump in the TED
Just when I commented how the market had seemed to settle down (by not making 1%+ daily/hourly moves) volatility returned once again on Tuesday. Following the parabolic move that began last September, these sort of swings should be expected. That doesn’t make them any more comfortable.
From a
