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Eric Nelson, CFA

Blog

Our blog is designed to cover short investment and financial thoughts that we don’t include in the monthly Factors In Focus newsletter including links to other articles we find interesting.

Friday, March 24, 2023

There are a number of lessons that investors, especially retired investors, can learn from recent bank collapses. Keep reading to learn more…

Tuesday, March 14, 2023

What can investors learn from the collapse of Silicon Valley Bank? Keep reading to learn more…

Friday, February 24, 2023

Dan Wheeler passed away this weekend. But his contributions to the financial advisory industry and my career in particular will not soon be forgotten. Keep reading to learn more about Dan's legacy...

Tuesday, February 21, 2023

DFA Funds have delivered an outsized amount of the small cap and value premiums, but what happens when those returns turn negative? Does DFA disappoint? Keep reading to learn more…

Tuesday, February 14, 2023

You might think Valentine’s Day and successful investing have absolutely nothing in common, but that’s not true. Keep reading to learn why…

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Tuesday, January 31, 2023

We now have 50 years of data on the best investment approach for your serious wealth. What can we learn by looking closer at the results? Keep reading to find out…

Tuesday, January 24, 2023

What were some of the things that stood out most to me in financial markets in 2022? Keep reading to learn more…

Thursday, December 22, 2022

Does the annual Nelson Family Christmas Tree trek share anything in common with how I invest your money? Actually I think it does! Keep reading to see what I mean.

Tuesday, December 6, 2022

A surprising year for stocks is another great example of why it’s essential to keep a cool head when your short-term investment results aren’t going the way you hoped. Keep reading to learn more…

Friday, December 2, 2022

David Booth explains why he fears that faster and easier ways of investing will allow people to lose more money faster and easier, and why using a trusted financial advisor is more essential than ever before.

Friday, November 4, 2022

Even though stocks are down in 2022, it’s the performance of bonds that has some investors most surprised. What’s happening with bonds and interest rates, and is it time for a change in strategy?

Friday, October 28, 2022

With over 200,000 financial advisors in the United States, how do you pick one? Keep reading to hear Dimensional Fund Advisors founder David Booth’s thoughts…

Thursday, October 13, 2022

Stocks, especially small cap and value companies, are supposed to be a good investment to combat rising inflation. But everything’s down this year. What’s going on?

Friday, October 7, 2022

People almost always think about investment risk the wrong way in retirement. What do I mean? Keep reading to find out…

Tuesday, September 27, 2022

Stocks are down 20% or more for the year and bonds aren’t far behind. This is a challenging year for investors, what should you be thinking and doing right now? Keep reading to find out…

Tuesday, September 20, 2022

It feels like international stocks haven’t done well in forever. So, predictably, everyone is now rethinking investing abroad. Is it time to bail on international stocks? Keep reading to find out…

Friday, September 9, 2022

We love lower prices, except when it comes to investing. We cheer for higher prices and run away from lower ones. It makes no sense. Keep reading to learn why…

Tuesday, September 6, 2022

Everywhere you turn there is an article or an interview suggesting that you need to be able to predict what will happen next in markets and invest accordingly to be successful. What if there was a better way?

Wednesday, July 6, 2022

After a tough stretch for stocks where there seems to be very little good news on the horizon, a dangerous condition called volatility fatigue can set in. What is it and how do you avoid it?

Thursday, June 2, 2022

Most people invest money without ever stopping to think about the direction they are trying to go or how to get there. A "plan-first approach" can help. Keep reading to learn more.

Friday, May 27, 2022

Value stock returns have been significantly higher than growth stocks in the last few years. Are you invested in the right funds to take full advantage of the value premium?

Tuesday, May 24, 2022

Can you still achieve your long-term goals if a bear market strikes? What could happen to your savings or spending plan if your portfolio drops by -20% or more? Keep reading to find out…

Monday, May 23, 2022

David Booth reminds us that if you can’t look past the ever-present short-term challenges that we face, you’ll never earn the long-term rewards that have come from owning equities.

Friday, March 18, 2022

Are you one of the 40% of Americans who let your retirement plan slip off track in the last few years? If so, is there anything you can do about it? Keep reading to see my thoughts…

Friday, March 11, 2022

Are you feeling like this time is different? Maybe you should make a change to your investment portfolio to avoid potentially losing more money? Before you do, read this article for a different perspective…

Thursday, February 24, 2022

Are you wondering whether now is a good time to sell stocks? Take some money off the table? What if prices go lower? Click the link to read my thoughts…

Wednesday, February 23, 2022

Inflation is back, and it is one thing you should be worried about. How has the most common approach to investing—indexing—fared during high inflation? Is there a better approach? Keep reading to learn more…

Wednesday, February 9, 2022

Expense ratios. Commissions. Advisory fees. People are paying much greater attention to these investment costs than ever before. But in doing so, they’re ignoring the biggest investment cost of all. What is it? And how can you avoid it?

Wednesday, February 2, 2022

You should own less stocks as you get older. At least that's what we are told. But is it true? I revisit the advice that too much in stocks can be risky for seniors.

Thursday, January 27, 2022

After several years of painful underperformance, value stocks have roared back to life recently. Will this trend continue? Keep reading to see my thoughts…

Friday, January 21, 2022

Inflation is back in the headlines. Is this a problem for you as an investor? If so, what can you do about it? Keep reading to learn more…

Wednesday, January 5, 2022

What were my good, bad, and ugly investment events of 2021? Keep reading to find out...

Wednesday, October 20, 2021

Successful Hollywood writer Dave Goetsch discovered Dimensional Investing years ago and has since become an outspoken advocate for a better way to invest. His latest article talks about how his financial life has changed for the better.

Friday, September 24, 2021

Even though the investment principles we run on are simple, they aren’t always easy to understand and accept. Here are some of the objections I’ve encountered and how to think more practically about them.

Thursday, September 9, 2021

This question, or some form of it, is the most common one I'm getting today. What are my thoughts? Keep reading to find out...

Monday, August 30, 2021

Why do we have such a hard time seeing the mistakes we make when we can spot these same mistakes so clearly in others? How does this all-to-common tendency impact our investments? Keep reading to learn more...

Friday, August 27, 2021

What do you do if you need money for a short-term expense and you don't want to take it out of your investment portfolio for tax or other reasons? You have some options, keep reading to learn more...

Thursday, August 19, 2021

Over 25 years ago, a simple formula was proposed using historical stock and bond data that suggested how much you could spend from your investments in retirement. What was it, and how has it held up?

Friday, July 30, 2021

A unique set of investment market conditions have conspired to make this one of the, if not the most challenging times in history to retire comfortably. What are those conditions and what should you do about them?

Friday, June 4, 2021

Is it possible to avoid stock bear markets in your retirement portfolio? My answer might surprise you, keep reading to learn more...

Friday, May 21, 2021

How much should you have invested in bonds in your retirement portfolio? Almost everyone I talk to gets this wrong. Continue reading to learn how to determine the right answer for you.

Tuesday, May 11, 2021

How much should you have invested in stocks during retirement? The answer might surprise you, keep reading to learn more...

Monday, April 19, 2021

Successful investing is about not losing money, right? The answer might surprise you. Keep reading to learn more...

Friday, April 16, 2021

We can help people to achieve a better investment experience. Here's how...

Monday, April 12, 2021

Read what Dimensional co-founder David Booth has to say about the rollercoaster of a year that we've lived through as investors.

Friday, April 9, 2021

There was a fair amount of skepticism surrounding our small-cap and value tilted Asset Class portfolios a year ago. Was it warranted?

Tuesday, March 30, 2021

Is it dangerous to invest when stocks have recently hit all-time highs? Keep reading to learn more...

Friday, March 26, 2021

Investors are increasingly questioning the wisdom of including international stocks in their portfolios. Keep reading to understand the benefits of diversifying globally...

Tuesday, March 23, 2021

The last 12 months has provided us a number of important lessons or reminders as investors that can help us to achieve greater success in the future. Keep reading to discover my takeaways from the last year...

Friday, March 19, 2021

Bitcoin and other cryptocurrencies are receiving intense media coverage, prompting many investors to wonder whether these new types of electronic money deserve a place in their portfolios. Keep reading to learn more...

Wednesday, March 17, 2021

During difficult times, switching your investment portfolio into something that's been working better seems sensible and proactive. But it's usually not. Keep reading to learn more...

Tuesday, March 9, 2021

We just celebrated a stock market anniversary you may have forgotten about given the wild movements of the last year. Keep reading to learn more...

Wednesday, March 3, 2021

Dimensional has a unique, focused approach to value investing that is designed to achieve higher long-term returns that make it easier for you to achieve your goals. Keep reading to understand the history of focused value investing...

Friday, February 26, 2021

We've seen a considerable turnaround in the performance of value stocks compared to growth stocks in recent months. Keep reading to learn more...

Friday, February 19, 2021

When investing, it’s always important to look at the big picture. A huge win on a stock bet today doesn’t mean much if you lose it tomorrow.

Wednesday, February 10, 2021

A handful of large technology stocks have had outsized returns in the last few years. Does this indicate there is something amiss or broken about the stock market today? Not at all. Keep reading to learn more...

Wednesday, January 20, 2021

Dimensional Fund Advisors posted their year-end review of capital markets last week. Along with your year-end report and Servo letter, this should provide you with interesting and helpful context for what was an extraordinary year!

Wednesday, December 16, 2020

What returns should we expect from stocks in the future? You can't plan for retirement or project an ongoing income stream in retirement unless you have some estimate of what you'll earn. To find out what I think, keep reading...

Monday, December 7, 2020

We saw record-high stock returns in November. What lessons can long-term investors take from the surprising short-term results? Keep reading to find out...

Monday, November 30, 2020

Dividend payments have a nasty habit of declining at the worst possible times, as we saw again this year in the midst of the Covid-related bear market. What's an investor who needs ongoing cash flow to do instead?

Monday, November 30, 2020

How should you respond to unexpected events as an investor? You shouldn't. Instead, David Booth reminds us of the core principles that lead to long-term sucess.

Thursday, September 24, 2020

What should we expect from the FAANG stocks going forward? Ken French weighs in, and I provide some additional perspective from the archives of market history.

Monday, September 21, 2020

What is the most dangerous mistake in investing? Are you making it personally? Keep reading to find out...

Monday, August 31, 2020

When it comes to managing your wealth, could playing it safe actually cause you to run out of money? When is avoiding risk the riskiest move of all? Check out the August edition of Words On Wealth to learn more.

Thursday, August 20, 2020

These are the five most important investment decisions to achieve a successful financial experience. Read and consider them carefully, and then forward this article on to a friend or family member facing the same financial challenges.

Monday, August 17, 2020

This is one of the greatest opportunities of your investing lifetime to ensure you have the right portfolio with appropriate amounts of value stocks. Growth has outperformed for a number of years, but a value resurgence is likely.

Wednesday, July 29, 2020

Index mutual funds and ETFs have become overwhelmingly popular in the last decade. But are they they best way to invest your serious, long-term money? Keep reading to find out, the answer might surprise you...

Monday, July 20, 2020

Growth stocks have had an outstanding run over the last few years. But rapidly rising prices have led to record-high valuations compared to value stocks. We've seen this movie before, and it doesn't end well...

Wednesday, July 8, 2020

Words On Wealth is our updated monthly newsletter, which aims to discuss the relevant aspects of planning and long-term investment that you need to understand to achieve your most cherished financial goals.

Wednesday, June 10, 2020

Will the Covid stock market decline crush the hopes you have for a comfortable retirement? Keep reading to find out...

Thursday, May 14, 2020

What can the Hall of Fame career of San Francisco 49er great Steve Young teach us about achieving financial success? Plenty, it turns out.

Wednesday, April 22, 2020

Decisions that seem sensible in the moment often have long-term, unintended consequences. When it comes to investing, unintended consequences can cost investors dearly. How can you avoid these mistakes?

Friday, April 17, 2020

Learn how one Hollywood producer adopted a new investment perspective that changed his view of market uncertainty by accepting a few simple truths, as well as his thoughts on the coronavirus and implications for long-term investors.

Monday, April 13, 2020

We are all biased in how we remember the past, and this has serious implications for how you make financial decisions. Learning more about your hindsight bias might help you avoid common and very costly investment mistakes.

Friday, April 10, 2020

During extreme market moves and worrisome headlines, many investors make big mistakes by abandoning their plans and selling stocks to avoid further losses. But a look back at history finds the best defense is a good offense.

Friday, March 13, 2020

Stock prices have fallen noticeably in the last six weeks as fears around the short-term economic impact of the Coronavirus continues to grow. You're probably thinking they'll go much lower. But could now be a great time to buy?

Monday, March 9, 2020

Stock returns have been extreme in recent weeks. Should you be concerned? Quite the opposite; the only reason stock returns have been high is because of bouts of extreme but temporary loss. Short-term pain is what allows for the gains.

Friday, February 28, 2020

The uncertainty surrounding the spread of the coronavirus is unsettling on a human level as well as from the perspective of how markets respond. Amid the anxiety, long-term investing principles offer guidance and insight.

Thursday, February 27, 2020

After an uneventful start to 2020, stock markets around the world became extremely volatile and suffered noticeable losses this week. What is the best course of action for investors in uncertain times? Keep reading to learn more...

Wednesday, February 12, 2020

US large-cap stocks and index funds are all the rage. Can a well-diversified large-cap stock fund such as the S&P 500 or a “Total” Stock Index provide you the ongoing income you will need in your later years? Keep reading to find out...

Friday, February 7, 2020

If you’re not thinking about shifting more of your portfolio to large US companies at this point, you’re at least wondering what’s going on with small value and what we can expect from these stocks going forward. Keep reading to find out.

Friday, January 17, 2020

I don’t make predictions, but I do think it’s worth answering this question: What are the lessons from 2019 that we can apply to 2020?

Tuesday, December 17, 2019

The partnership between Dimensional Fund Advisors (DFA) and a select group of independent Registered Investment Advisory (RIA) firms spans over 30 years. Learn more about this unique relationship by clicking the link...

Tuesday, December 3, 2019

Record highs for the stock market have captured investors' attention in recent months. But a longer-term perspective reveals that investing in stocks has worked even better than you probably realize. Keep reading to learn more...

Thursday, November 21, 2019

Most people split their investments between stocks and bonds without any additional consideration. But is there more to investing than your stock and bond split? Keep reading for some surprising perspectives...

Thursday, November 14, 2019

If you accept a different view of markets, the benefits can go way beyond just investing money. To understand this different view, keep reading...

Wednesday, November 13, 2019

Is there a better feeling than the one you get realizing you've made a great decision? Do you ever think about your investment choices as great decisions? Maybe you should...

Friday, November 8, 2019

Value and small-cap stocks have sprung to life in the last few months. A look at recent returns provides some relief from the challenges of the last few years while confirming that not all low-cost investment portfolios are created equal.

Wednesday, October 30, 2019

On Halloween, what better topic to cover than the scariest part of investing? Investors fear losing money more than anything else. But lessons from history coupled with smart financial planning can help alleviate your fears.

Friday, October 25, 2019

Successful long-term investing is pretty boring on a daily or weekly basis. But there are many small decisions that can add up over time. Watch a video from DFA's David Booth that puts this concept in perspective...

Tuesday, October 22, 2019

A lot of advisors worry that if you make an investment portfolio too simple, a client might ask why they even need an advisor? But in my experience, nobody wants investment complexity. People prize a more efficient approach.

Thursday, October 17, 2019

Index fund investors claim that costs are all that matter. Active managers say there is a bubble in indexing and you're better off investing with them. Which one is right? Or is there a better way to invest? Keep reading to learn more...

Wednesday, October 9, 2019

There has been plenty to worry about as an investor over the last 10 years. What has happened if you acted on these concerns in your investment portfolio?

Wednesday, October 2, 2019

Take a minute to watch this video about the friendship between Eugene and David--two of the three people who have had the greatest influence on how Servo clients invest their life savings.

Wednesday, September 25, 2019

Stocks have barely beat bonds this century, which is bad news for investors saving for retirement, right? Not so fast! If you've been dollar-cost averaging, your experience has been much better. Keep reading to learn more...

Wednesday, September 18, 2019

It used to be that you would hire a financial advisor to pick stocks and outsmart the market. But we now know those schemes don't work. What is the value of a financial advisor in a world where active management doesn't work?

Tuesday, September 17, 2019

Most investors are not as successful as they could be because they continue to rely on failed approaches that sound smart in theory but in practice don't work well. Don't take my word for it, keep reading to hear from others...

Thursday, September 12, 2019

Higher expected investment returns don't show up in every time period. But a combination of precise portfolio implementation and extreme patience can increase the odds that you achieve a desirable experience. Keep reading to learn more.

Thursday, September 5, 2019

Most financial advisors use complex investing approaches that appear quite sophisticated. But a closer look often finds that a simpler approach is more suited to an investor's long-term goals and is easier to understand and stick with.

Friday, August 30, 2019

Let's say you knew in advance that 2008 was going to be the worst year for stocks since the 1930s. Would you still want to own stocks? Your guess would probably be no. You might think Gold was a better bet. Has that been true?

Wednesday, August 28, 2019

I believe all investors deserve to work with an independent, fee-only financial advisor who has attained the CFA designation. What is the CFA and why does it matter? Keep reading to learn more...

Tuesday, August 20, 2019

We always seem to forget how volatile stocks are. Once you learn to accept and embrace the volatility, however, you can begin to benefit from it. Keep reading to learn more...

Friday, August 16, 2019

Bond yield curves change as markets digest new information. Does an inverted yield curve tell investors anything meaningful about the timing and direction of equity market moves? Keep reading to learn more...

Thursday, August 15, 2019

To be successful in retirement today requires a much more holistic view of what you are facing and what the investment realities are. There are four crucial financial issues I think all retirees must address, keep reading to learn more.

Tuesday, August 6, 2019

If you’re watching the markets or your investment portfolio too often, you have unfortunately noticed the sharp drop in stocks over the last week. For helpful insights to keep things in perspective, keep reading...

Friday, August 2, 2019

On August 1st, Servo relocated from downtown Oklahoma City to our new office location in Nichols Hills. Update your contact information with the new address, phone number, and fax.

Thursday, August 1, 2019

From growing up in Senegal to playing basketball at the University of Kansas, Moulaye Niang has learned the importance of having a belief system, following a process, and connecting with people. Take a few minutes to hear his thoughts...

Wednesday, July 31, 2019

Are there lessons for long-term investors from the surprising trajectory of interest rates this year? Keep reading to find out...

Sunday, July 21, 2019

While the stock market continues to hit all-time highs, your portfolio value remains below the levels it reached in 2018. Is there something wrong with your asset alloction? Your investment plan? Keep reading to find out...

Monday, July 15, 2019

Contrary to the obituaries being written about value stocks, now might be the best time in modern history to be high on a low-priced approach to stock investing.

Tuesday, June 11, 2019

The media has been sharpening its focus on cycles lately, but not in anticipation of the Tour de France. Rather, the financial media’s spotlight is on business cycles. Should you care? Keep reading to find out.

Thursday, June 6, 2019

After saving for years, the returns on your investments should be important to you. If you’re an investor, that’s exactly what a recent study from Morningstar found. After “helping me reach my goals,” “has...

Wednesday, May 15, 2019

When people act like the sky is falling, it’s helpful to remember that volatility is normal, and there are simple things you can do to pursue a better investment experience.

Wednesday, May 8, 2019

What does a carefully crafted cup of Chemex coffee have to do with expert investment portfolio design and construction? If you're a Servo client, more than you might think. Read April's Factors in Focus newsletter to learn more...

Monday, May 6, 2019

It seems everything you read about investing today suggests that stock returns have been too high in recent years, and we're overdue for a serious correction, bear market, or worse. But have they?

Wednesday, May 1, 2019

What's the best investing approach in a market where short-term returns are mostly random and we can not predict which asset class will perform better or worse over the next few years? Keep reading to find out...

Friday, April 26, 2019

Diversifying your portfolio is important but understanding when your portfolio is likely to pay off, and when it's not, is an important part of a long-term investment plan. What good are returns if they tend to show up when you don't...

Thursday, April 18, 2019

The March Factors In Focus newsletter has been posted. This month we look at the performance of small cap and value stocks and compare their recent performance to a famous Aesop's Fable for an important lesson. Click the link to read more!

Thursday, April 11, 2019

Traditional financial advisors still have a me-first mentality to working with their clients. Fortunately for investors, there is a way to get better financial advice. Click on the link to learn more...

Thursday, March 28, 2019

Not all value strategies are created equal. A new academic study shows that the names of many value funds are misleading. A recent academic study generating buzz in the media confirms what many people already suspected: a lot of value...

Wednesday, March 27, 2019

One of the many mistakes individuals and advisors make when investing is looking at individual securities or asset classes in isolation. Is that a good large-cap value fund, or short-term bond fund? You simply do not know by looking at...

Thursday, March 21, 2019

Recent stock returns have been much higher in the US market than overseas. Does diversifying internationally still make sense? Keep reading to find out...

Friday, March 15, 2019

How can we build on the legacy of investing legend John Bogle? Check out the February Factors In Focus newsletter to learn more!

Tuesday, March 5, 2019

10 years ago the worst bear market since the Great Depression ended, and stock market optimists can claim yet another victory.

Tuesday, February 26, 2019

You have money to invest, are you better off waiting for the right time or just plunging in? Keep reading to learn the answer...

Thursday, January 31, 2019

The last time stocks did this well in January Fatal Attraction was in theaters, and there's a lesson here for smart investors. Click on the link to read further...

Monday, January 28, 2019

Are you better off playing it safe, or exercising more bravery in the face of investment uncertainty? The January edition of Factors In Focus discusses this topic in greater detail. Click on the link below to read more...

Thursday, December 13, 2018

The high return from stocks comes from noticeable short-term volatility, as we've experienced recently. Here's one simple way you can reduce the risk of stocks...

Friday, December 7, 2018

After a tough week for stocks to start December, the market has declined by over 10% since its late September highs. During uncertain times investors often ask themselves why they are putting up with the volatility. Here's why...

Wednesday, December 5, 2018

With US stocks outperforming non-US stocks in recently, investors have again turned their attention towards the role of global diversification. Does it still make sense to diversify globally across asset classes? Read further to find out.

Friday, November 30, 2018

This month's newsletter discusses how I started Servo, how the firm has progressed in the last seven years, a few things about Servo I am especially proud of, and what's next for the firm and for Servo clients. Click the link to read more.

Monday, November 12, 2018

It's important for investors to receive independent, principled advice that is clearly and frequently communicated. I've learned the hard way this is easier said than done. Check out the October edition of Factors In Focus to learn more.

Tuesday, November 6, 2018

DFA looked at 92 years of data to see how US financial markets have responded historically to midterm elections. Here’s what long-term investors need to know...

Wednesday, October 24, 2018

As investors, we know markets can be volatile and that stocks fluctuate in value, sometimes a lot. But that doesn't make the actual experience any easier, even if it is part of the necessary process required to earn the returns we need...

Monday, October 15, 2018

The S&P 500 has had above-average returns this decade, outperforming a more diversified stock portfolio. Does this signal a long-term issue with broad asset class diversification, or is it typical of the patterns we've seen historically?

Tuesday, October 2, 2018

Twenty years ago, this month, I began my career as a financial advisor. I've been learning ever since, but my experiences in the early years and the lessons I took from them were particularly important. Click on the link to read further.

Monday, September 17, 2018

Bond indexes are tough to beat for traditional active managers. But an alternative approach emanating from academia that targets the primary fixed income factors when expected returns are highest has achieved a much more favorable result.

Thursday, September 13, 2018

Stock and bond market returns have historically been quite generous, but that doesn't stop many professionals and fellow CFA charterholders from reaching for more by pursuing a selection and timing approach to beat the market.

Wednesday, September 5, 2018

The August edition of Servo's Factors In Focus newsletter has been posted to the website. It discusses our inclination towards activity and why, in investing, sometimes doing nothing is the most proactive and profitable move of all.

Friday, August 24, 2018

What is a bigger risk, investing in the wrong place or investing at the wrong time? The answer may surprise you...

Thursday, August 23, 2018

Vanguard founder John Bogle often advises investors to avoid stock market forecasts. Turns out, this advice applies even to his predictions.

Friday, August 17, 2018

Forget the threats lobbed by Washington at Beijing, Ankara, and Moscow. This is no global trade war and there is no reason to flee emerging markets, according to billionaire and DFA co-founder David Booth.

Wednesday, August 15, 2018

A recent US News and World Report article explored the idea of investing in junk bonds. I was the lone voice of opposition. So what don't I like about junk? Read on to find out....

Thursday, August 9, 2018

Why not move in and out of the markets in an attempt to exploit opportunities while sidestepping the inevitable declines? Can't you earn higher returns with less risk this way? Probably not...

Tuesday, August 7, 2018

The headlines are relentlessly negative—before, during, and after bear markets. If you are succeptable to following them closely and responding to them, the July Factors In Focus explains why it’s time for a different approach.

Friday, August 3, 2018

Monday will mark the seven-year anniversary of Standard & Poor's lowering the credit rating on the United States for the first time in recorded history. If ever there was a "this time it's different" moment, it would have been this....

Wednesday, July 18, 2018

As Servo Wealth Management has grown, the need for a different office was inevitable. Servo recently moved to downtown Oklahoma City, across the street from the historic Skirvin Hotel. Click the link for details.

Tuesday, July 17, 2018

What is a financial advisor for? One view is that advisors have unique insights into market direction that give their clients an advantage. But of the many roles a professional advisor should play, soothsayer is not one of them.

Wednesday, July 11, 2018

How dramatically would your investment decisions change if you knew the truth about long-term investing? Keep reading and let's find out!

Friday, June 29, 2018

The prevailing model of wealth management is towards an increasing number of services and added complexity. Servo takes a different approach; believing in "less but better."

Monday, June 25, 2018

Investopedia has released the 2018 edition of their "100 Most Influential Financial Advisors" list, and I am honored to once again be recognized. Click the link to read more about the Investopedia 100 List.

Thursday, June 7, 2018

The May Factors In Focus newsletter has been posted to the website. How can a focus on the essential, as highlighted by a few well-known sayings, result in a better financial outcome? Click on the link to learn more...

Wednesday, May 23, 2018

There aren't as many publicly traded US small cap stocks as there used to be. What does this mean for the small-cap premium and portfolios that diversify across smaller cap stocks?

Monday, May 14, 2018

For many people, saving up a million dollars seems like a pipe dream. But it's not as hard as you might think. It just requires a combination of savings, time, and patience.

Friday, May 11, 2018

Advisor and fellow CFA charterholder Dougal Williams recently published an interesting and timely article on the CFA website titled "Three Investing Lessons From My Mom." Check it out!

Monday, May 7, 2018

Investors have been gravitating towards low expense ratio mutual funds and exchange-traded funds (ETFs) for many years, which is smart. All things being equal, lower expense ratios mean higher returns. But that's not the whole story.

Tuesday, May 1, 2018

I have posted the April edition of the Factors In Focus newsletter to the website. Read about how truth and trust can lead to a better investment experience and afford you the time to spend on more rewarding aspects of life.

Monday, April 23, 2018

What happens to stocks and bonds when interest rates rise? We can't say for sure but like most aspects of investing, looking at history can give us some idea.

Tuesday, April 10, 2018

It has always been essential to me as a financial advisor to put my clients' best interests first. That is why I started Servo Wealth Management. I could make more money if I stayed at a bank or a brokerage firm selling annuities or...

Thursday, April 5, 2018

Investment markets are volatile, but that doesn't mean your investment decisions need to be.

Thursday, March 29, 2018

We have posted the March edition of our Factors In Focus newsletter to the website. Be sure to check it out!

Thursday, March 15, 2018

What is the most important piece of investment advice? It's far simpler and harder than you think.

Thursday, March 8, 2018

What would you say is the "best" investment approach? Is it the one that has the highest returns? Or is it the one that has the least amount of risk? What if I told you that neither was true.

Wednesday, February 28, 2018

We have posted the February edition of our Factors In Focus newsletter to the website. Be sure to check it out. Clients will be receiving their copy in the mail shortly.

Monday, February 12, 2018

Stock prices can fluctuate, sometimes dramatically. The average investor without a plan tends to react and panic, which often turns out to be a costly move. Check out this video from DFA with compelling evidence for staying the course.

Wednesday, February 7, 2018

The financial media's negativity narrative is on constant display. But that doesn't mean you have to fall victim to in.

Monday, February 5, 2018

The Dow Jones Industrial Average fell over 1,000 points yesterday. But 1,000 points ain't what it used to be.

Wednesday, January 31, 2018

The January edition of our Factors In Focus newsletter has been posted to the website. If you've been wondering about what to make of or do about higher stock prices, this is one article you'll not want to miss!

Friday, January 26, 2018

The asset class return is always the default investment option and more than likely sufficient for you to achieve your long-term goals. Should you try to reach for more?

Thursday, January 18, 2018

Emily Brandon of U.S. News & World Report published an article yesterday about the investment and financial planning moves to make before you retire. Be sure to check it out!

Tuesday, January 16, 2018

Asset class returns are mostly random from year to year. But that doesn't mean we cannot learn from the randomness.

Wednesday, January 10, 2018

Stock returns have been too high and we're on the cusp of a collapse, right? Probably not. Recent returns have actually been much closer to average, and here is the data to prove it....

Friday, January 5, 2018

2017 was a good year for global stock markets. How good? Keep reading...

Thursday, December 14, 2017

We have not heard much about gold in the last few years, for good reason. After hitting an all-time high in September of 2011, it has declined relentlessly ever since. Does gold have a place in your portfolio?

Thursday, November 30, 2017

The November edition of our Factors In Focus newsletter, "Legends of the Fall," has been posted. Be sure to check it out!

Wednesday, November 29, 2017

Growth stocks are beating value stocks by almost 20% this year. But we've seen this before. What happened the last time growth was trouncing value? Read on to find out.

Friday, November 17, 2017

Patience, not panic, will make and keep you wealthy. Here's one vivid illustration of this reality.

Tuesday, November 14, 2017

Some investors have sustained losses over the last few years that are on par with the worst bear markets in history. How is that possible? Read on...

Friday, November 10, 2017

Global small value stock returns for the last 5 years have been within 0.2% a year of their long-term average since the 1920s. Ignore historical market returns at your peril.

Tuesday, November 7, 2017

To many observers, the returns on stocks over the last nine years are anomalous and unwarranted. We were supposed to see much lower results. But this is what stocks do.

Tuesday, October 31, 2017

The October edition of our Factors In Focus newsletter, "Spend It If You've Got It" has been posted to the website. Check It Out!

Monday, October 30, 2017

Few investment decisions have been more profitable over time than holding lower-priced "value" stocks compared higher-priced "growth" stocks. Since 1927, the Fama/French US Value Index outperformed the US Growth Index by 3.3% per year...

Friday, October 27, 2017

Bad companies make for good stocks. How can this be? Check out this classic article from Eugene Fama Jr. in 2000 to better understand why.

Sunday, October 22, 2017

It's all doom and gloom when it comes to the discussion of the market crash from 30 years ago dubbed "Black Monday." But a closer look reveals many positive lessons we can take from the experience that you haven't read anywhere else.

Thursday, October 12, 2017

The philosophy we use to manage investment portfolios is rooted in over 50 years of academic financial research. Here are a few words from a handful of the financial economists who have influenced our efforts.

Tuesday, October 3, 2017

The September edition of our Factors In Focus newsletter, "And Then There Was None," has been posted to the website. Previous editions can be found on the Factors In Focus page. As always, clients will be receiving their copy in the...

Friday, September 29, 2017

Few investment approaches seem simpler and more intuitive than buying and holding a handful of large, successful companies. But should you bet it all on blue chips?

Tuesday, September 26, 2017

Extreme short-term stock returns--both gains and losses--are more common than we assume. But trying to avoid them by hedging or timing the market only makes a bad thing turn catastrophic.

Thursday, September 21, 2017

"The easy money has been made." You've probably heard this line lately as it relates to your investments. But is it true?

Thursday, September 14, 2017

Have you looked at the top holdings in a traditional index fund lately? It ain't good...

Thursday, September 7, 2017

Small stocks have delivered big returns. But you have to be careful with how you invest in small companies. Not all approaches yield the same expected results.

Friday, September 1, 2017

Selling an investment after a short stretch of disappointing returns is far too common amongst investors and advisors. The cost of this mistake is often extremely high. Here's one example.

Thursday, August 31, 2017

The August edition of our Factors In Focus newsletter, "Market Misdirection," has been posted to the website. Previous editions can be found on our newsletter page here. As always, clients will be receiving their copy in the mail...

Friday, August 25, 2017

The "smart money" earns far higher returns than the average investor. Here's one surprising reason why.

Monday, August 21, 2017

Few books have received more criticism and mockery than Dow 36,000, published in late 1999 in the midst of the technology craze. But almost two decades later, was 36,000 so far off?

Thursday, August 3, 2017

One of the biggest and often overlooked benefits of having a long-term investment approach is the amount of time saved not having to scrutinize short-term market movements and their impact on your money. Can this make you happier too?

Monday, July 31, 2017

We've posted the July edition of Factors In Focus. Check it out!

Monday, July 31, 2017

A Wall Street Journal article on Friday begins with this: "Stocks are hitting records and valuations are at 15-year highs, both signs of confidence. But a closer look at what is driving the rally shows that the eight-year bull market...

Tuesday, July 25, 2017

According to a chart in the Wall Street Journal, the number of Americans who are living to 100 years of age has approximately doubled in the last 30 years. What does that mean for a modern retirement plan?

Friday, July 21, 2017

We're in the midst of a multi-year stretch of strong relative performance for US large cap stocks compared to most other stock asset classes. Many investors are taking this as a cue to abandon diversification, but we have different advice.

Thursday, July 13, 2017

The obsession with investment fees has reached a new level of absurdity. But to achieve long-term financial success, you have to focus on the big stuff.

Friday, June 30, 2017

We've posted the May edition of our Factors In Focus newsletter to the website. Previous month editions can be found on our newsletter page. As always, clients will be receiving their copy in the mail shortly...

Thursday, June 29, 2017

Investopedia released their inaugural list of what they have determined are the most "influential" financial advisors in the US. I was excited to learn I made the list.

Tuesday, June 27, 2017

It's well known that traditional actively-managed funds don't outperform their index. But one company has taken an index fund-like approach to consistent outperformance over the long term.

Monday, June 26, 2017

The details of investing attract all the attention, but evidence finds that it's the big-picture decisions -- decisions we often get wrong -- that have the biggest impact on our outcomes.

Friday, June 23, 2017

"Investors in stocks should be getting nervous," we were told by the Fiscal Times yesterday. Apparently, there are as many as six different stock market risks that should concern us? Even if you don't act on these sensationalized...

Wednesday, June 21, 2017

Nine months after we published our Factors In Focus newsletter on managing market highs, stocks have continued to advance. A second look at the article might be helpful for those who are concerned that stock prices are too high.

Friday, June 16, 2017

The chart below lists the 117-year, inflation-adjusted returns on every major stock market in the world. You'll notice that the US stock market has been a particular standout, returning +6.4% per year more than inflation (nearly 10%...

Thursday, June 15, 2017

A recent Bloomberg interview with Vanguard Funds founder John Bogle discusses his views on foreign stock diversification. Long a proponent of investing all of your assets in the United States, Bogle looks back on these views since the...

Friday, June 9, 2017

We've heard for years that interest rates just had to go up and that bond returns would suffer. Many investors even worried that rising interest rates would have an adverse impact on stocks. The problem with all of this speculation is...

Thursday, June 8, 2017

Once upon a time, an allocation to commodities was a must have amongst sophisticated investors. The lessons from the commodity debacle should help you avoid making the same mistake again with the latest round of alternative assets.

Friday, June 2, 2017

Hopefully, this chart helps you decide...

Thursday, June 1, 2017

We've posted the May edition of our Factors In Focus newsletter to the website. Reminiscent of the famous line from Superman, many investors today are asking their advisor, "You've got me, who's got you?" And for good reason.

Friday, May 26, 2017

Some investors perceive great value in their broker or advisor's "asset allocation updates." But regardless of how sophisticated or nuanced the narrative, this isn't proactive portfolio management, it's just market timing. Caveat emptor.

Thursday, May 25, 2017

Morningstar named Bruce Berkowitz of the Fairholme Fund the 2000-2009 US stock "Manager of The Decade." How has he fared since? How about the investors in his fund?

Tuesday, May 23, 2017

Investment management and retirement planning have become needlessly complex. Don't believe it? Check out Exhibit A: the John Hancock Retirement Date Funds.

Friday, May 19, 2017

This from a Morningstar article this morning: "Since the mid-1990s, value stocks have roughly matched growth stocks' returns..." Really?

Wednesday, May 17, 2017

Some financial advisors try to impress their clients and prospective clients by providing forecasts for the future returns on stocks and bonds. Below is an example published almost seven years ago from investment advisor GMO. GMO...

Tuesday, May 16, 2017

The brokerage firm Morgan Stanley was in the headlines last week, but not for reasons that will make their clients happy. Morgan Stanley has decided to stop allowing the purchase of Vanguard funds for those investors working with a...

Friday, May 12, 2017

DoubleLine Capital's Jeff Gundlach is a prominent bond fund manager who likes to make bold predictions about the markets. But before you follow his advice, you might want to consider his track record.

Wednesday, May 10, 2017

An important part of our Asset Class investing approach is tax-sensitive implementation. April's Factors In Focus newsletter discusses our approach in greater detail.

Friday, May 5, 2017

Knowing the stock market can decline dramatically, and actually experiencing these declines in our portfolio are two completely different things. This is why you have a financial advisor.

Thursday, May 4, 2017

The chart above looks at the annual returns on the S&P 500 and a more globally diversified index portfolio for the 11 years between 2000 and 2010. The S&P was barely positive on a cumulative basis over this period, and continuing to...

Wednesday, May 3, 2017

You can't predict when markets will be positive. By holding a diversified portfolio, managing costs and taxes, staying disciplined and having a long-term orientation, the odds that you will achieve acceptable results rise dramatically.

Tuesday, May 2, 2017

Marketing extraordinaire Robert Arnott and his Research Affiliates colleagues published a research paper last week claiming that the returns on "factor tilted" strategies have generally been less in the real world than the simulated...

Monday, May 1, 2017

Nobel laureate Robert Shiller warned in the NY Times last month that we should be cautious about stock prices ("Caution Signals Are Blinking For The Trump Bull Market"). I'm sure more than one reader took his advice to heart and...

Friday, April 28, 2017

Have you heard of "managed futures" as an investment strategy? Trust me when I say you'd be better off if you haven't. It's another of Wall Street's brilliant marketing ploys, an asset class with supposedly good long-term returns...

Thursday, April 27, 2017

Mutual fund and ETF research and rating firm Morningstar ran a piece yesterday titled "10 Funds That Beat The Market Over 15 Years." You don't see as many of these articles anymore -- many investors have wised up to the fact that, with...

Wednesday, April 26, 2017

The next time you think about rejiggering your investment portfolio to overweight some of the recent winners (or losers) consider this patchwork chart. There's no discernable pattern amongst different asset classes.

Tuesday, April 25, 2017

We take for granted the superiority of index funds over active managers today. But there's a lot more to investing than just buying an S&P 500 fund.

Monday, April 24, 2017

The smartest investment approach has been to diversify broadly -- owning small-cap stocks, value stocks, and foreign stocks as well as US large companies (S&P 500 Index), but what works isn't always working.

Friday, April 21, 2017

Traditional brokerage firms have been bleeding assets at an unprecedented rate over the last 7+ years at the expense of independent, fiduciary-minded financial advisory firms like Servo.

Thursday, April 20, 2017

Only one word that should convince you about the need to globally diversify your investment portfolio: Japan. Since 1990, we've lived through a 27-year stretch where Japanese large cap stocks (the equivalent of the S&P 500) have had a...

Wednesday, April 19, 2017

Can you guess the best performing asset class since 2000? How about the worst? Of course you can't, and that's why you diversify.

Tuesday, April 18, 2017

What would you do with a $315B investment portfolio? Chances are you haven't thought about it. But that's the "problem" faced by the California Public Employees' Retirement System (CALPERS), the largest public pension fund in the US....

Monday, April 17, 2017

Despite the relative superiority of the US stock market over the last few years, no serious investor besides Vanguard founder John Bogle believes that you should concentrate all your investments domestically. David Booth explains why.

Friday, April 14, 2017

Returns on stocks around the world have been muted since the turn of the century, in large part because we've seen two of the worst 5 bear markets in 90 years occur since 2000. Despite these setbacks, holding on through the downturns...

Thursday, April 13, 2017

More time and effort is spent (wasted) on convincing investors that they can achieve good returns without experiencing the risk that comes along with those returns. Market timing, stock selection, black-box alternatives that supposedly...

Wednesday, April 12, 2017

How to take an ongoing income stream from a portfolio tends to be one of the more confusing concepts for retired investors. Here is the best way to do it.

Tuesday, April 11, 2017

Investors and some financial advisors were duped into believing alternative assets like commodities helped to boost a portfolio. Will you be fooled into investing in the latest round of alternatives?

Monday, April 10, 2017

Investors sometimes express a desire to reduce their overall stock allocation after a surge in prices or before retirement. In their minds, they are dialing down the risk of their portfolios. But are they truly accomplishing what...

Friday, April 7, 2017

Do you know the difference between a broker and a Registered Investment Advisor (RIA)? You need to. The first is an employee of a brokerage firm, tasked with generating profits for their company through the sale of investment products...

Thursday, April 6, 2017

The best performing stock mutual fund during the decade of 2000-2009 was the CGM Focus fund, returning +18.2% per year. Investors in the fund actually lost an average of -11% per year. The Morningstar Domestic-Stock Mutual Fund Manager...

Wednesday, April 5, 2017

The Wall Street Journal had a chart showing the average growth rate of corporate earnings for S&P 500 companies since 1985. It's no surprise that stock returns look very similar.

Tuesday, April 4, 2017

The percentage of active managers who are beating the market this year is on the rise. I wouldn't quite call it a comeback.

Monday, April 3, 2017

A recent article stated that the average financial advisor in the US is 51 years old, and over a quarter (27%) of all advisors plan to retire in the next 10 years. For investors, this is a serious consideration when shopping for advice...

Friday, March 31, 2017

There is a significant difference between knowing how to invest and doing it consistently. Our March Factors In Focus newsletter explores this important topic further.

Thursday, March 30, 2017

One of the reasons why investors don't achieve better results with their wealth is that the don't understand the remote odds of successfully choosing investments that will outperform the market based on past performance.

Wednesday, March 29, 2017

If I could use only one chart to explain investing, this would probably be it. Let’s consider, in just a few words, all that these five squiggly lines and labels tell us.

Tuesday, March 28, 2017

I recently sat down to review my parents' investment plan. Here's what I saw, and what I did about it.

Monday, March 27, 2017

If you think I'm unnecessarily tough on the financial media, consider this candid admission from Steve Forbes, speaking about the value of "advice" offered by financial publications.

Friday, March 24, 2017

One of the excuses you’ll hear from traditional “active” managers is that they’re not given enough latitude to beat the market. This meme spawned an entire mutual fund category, “Long/Short Equity.”...

Thursday, March 23, 2017

The recent run-up in stock prices isn't a "Trump Trade." Market gains and losses are always more complex than simple narratives imply.

Wednesday, March 22, 2017

Unlike most financial advisory firms, Servo's investment approach is based on Nobel Prize-winning academic research, not Wall Street marketing or black box schemes. But you can't invest in research, you need real-world investment...

Tuesday, March 21, 2017

A Wall Street Journal article yesterday brought attention to the significant strain within the $70B Puerto Rico bond market. If that doesn't sound like a problem for US-based investors, think again.

Monday, March 20, 2017

Remember this cartoon the next time you read or hear something from the financial media that has you overly concerned. It's funny but true.

Saturday, March 18, 2017

We can all learn from the investment mistakes made by Marty Bannon -- father of current White House counselor and chief strategist Steve Bannon -- during the 2008 stock market collapse.

Friday, March 17, 2017

Stocks have experienced strong gains in the last few months. We now have a better understanding why.

Thursday, March 16, 2017

The Federal Reserve raised interest rates by 0.25% yesterday, the third increase in the last 18 months. What does history say about investment returns during extended periods of rising interest rates?

Wednesday, March 15, 2017

Imagine a scenario where everything you will spend money on in 10 years is twice as expensive as it is today. Now imagine that you'll have to guide your investment portfolio to generate the returns necessary to stay ahead of inflation.

Tuesday, March 14, 2017

Eight years ago this month, the stock market free fall came to an abrupt end. Returns on major global stock asset classes since March of 2009 reminds us why we need to stick around in a tough market.