One of the disciplines we have embraced here at Season Investments is called trend following. In its simplicity, trend following is an elegant solution to the age old conundrum of needing robust returns while simultaneously being unable to withstand the extreme volatility of risk assets.
We have dedicated countless hours of schooling and self-study to the body of academic knowledge pertaining to investment management. A significant portion of which was focused on how buying and holding financial assets for the long-term is the best investment strategy. While we don’t disagree with this line of thought, we think its limitations need to be better understood.
Everyone has heard the phrase, “hindsight is 20-20” and most believe this to be a true idiom, but in actuality our brain plays a very powerful role in shaping how we experience the world and remember the past. This fact has potentially dangerous implications when it comes to investing.
A year ago we penned a four-part series on how regular consumption of the news might be detrimental to your financial decision-making. In an information-overload society we think this topic is as prevalent as ever. This week we review that four-part series.
Over the past six weeks we’ve been exploring the topic of risk as it pertains to our finances. Risk is an ever-present part of life, yet most people turn a blind eye to the risks they are either intentionally or unintentionally taking. In today’s post, we will recap some of the key takeaways from our series on financial risk.
This week we continue the discussion on risk by looking at the erosive impact that unnecessary fees and expenses can have on a person’s long-term wealth accumulation. Think of fees and expenses as reverse compounding –annualized costs might not be eye-popping at first glance, but over time their compounded effects can be substantial.
No one wakes up in the morning thinking, “Today is the day to plan for my demise,” which is why so many people go through lives under-insured without a will or estate plan in place. Today we will look at the risk of not planning for the future of our assets after we pass away.
When we talk about financial risk most of our us jump straight to the potential for catastrophic events such as a stock market collapse, being laid off at work, or incurring significant medical expenses. But today we’re going to take a step back and discuss a more subversive risk that can (and does) impact nearly all of us – the risk of not saving enough money.
So many people are eager to accumulate and grow financial wealth, yet they exhibit the exact opposite behaviors needed to do so. The principles that lead to financial gain and long-term investment success are not shrouded in mystery. There is no secret sauce or hidden formula, and in theory it is really quite simple...in theory.
Over the next several weeks we will unpack the question "What is risk?" to explore different areas of risk people take in their finances and the best way to manage them. In today’s post we will start by looking at the most common definition of risk in finance: the standard deviation (or volatility) of portfolio returns.
When was the last time you sat down and thought long and hard about risk? An intentional and thorough consideration of the variety of risks you’re taking in life and why. Risk is an ever-present part of nearly every area of life, and as financial market participants we know that it’s part of the equation that cannot be eliminated.
Being right about something tells the world around us that we are knowledgeable and wise. This is why so many financial pundits make brash predictions about the future to give themselves an aura of wisdom. In this week’s post we will look at an individual who was a huge benefactor of this practice and what we can learn from his story.