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.
Barbed Wires
Are you like so many investors who are continually tripped up by investing barbed wires? If so, you’re missing out on greener pastures and the opportunities they could afford you and your family. Keep reading too learn more…
Read MoreHow Much Can You Spend In Retirement?
What if everything you've heard or have been told about how much you can spend from your investment portfolio is wrong? Wouldn't you want to know sooner and not later? If so, click on the link to read my thoughts...
Read MoreWhat Can Retired Investors Learn From Bank Collapses?
There are a number of lessons that investors, especially retired investors, can learn from recent bank collapses. Keep reading to learn more…
Read MoreSilicon Valley Bank and Sensible Investing
What can investors learn from the collapse of Silicon Valley Bank? Keep reading to learn more…
Read MoreThanks Dan.
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...
Read MoreShow All
DFA Funds: Anything But One-Dimensional
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…
Read MoreBuying Roses and Buying Investments
You might think Valentine’s Day and successful investing have absolutely nothing in common, but that’s not true. Keep reading to learn why…
Read MoreThe Best Investing Approach Just Turned 50
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…
Read More2022: The Good, The Bad, and The Ugly
What were some of the things that stood out most to me in financial markets in 2022? Keep reading to learn more…
Read MoreA Little Full, A Lotta Sap
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.
Read MoreThe Benefits of a Cool Head
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…
Read MoreTime the Market at Your Peril
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.
Read MoreThe Bonds Are Alright
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?
Read MoreTrust the Advisor Who Trusts Markets
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…
Read MoreThe Rocky Road to Real Returns
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?
Read MoreThe Biggest Risk We Face In Retirement and How To Avoid It
People almost always think about investment risk the wrong way in retirement. What do I mean? Keep reading to find out…
Read MoreKeeping a Cool Head While Others Are Losing It
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…
Read MoreIs It Time to Abandon International Stocks?
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…
Read MoreLower Prices Mean Higher Expected Returns
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…
Read MoreForecasting Not Required
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?
Read MoreVolatility Fatigue
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?
Read MorePlan First
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.
Read MoreGot Value?
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?
Read MoreBeware of Bear Markets?
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…
Read MoreWorried About Stocks? Why Long-Term Investing Is Crucial
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.
Read MoreHow To Restart Your Retirement Plan
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…
Read MoreIs It Different This Time?
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…
Read MoreIs Now a Good Time To Sell Stocks?
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…
Read MoreWill Index Fund Investors Survive Inflation?
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…
Read MoreThe Biggest Cost of Investing
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?
Read MoreCan Seniors Have Too Much In Stocks?
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.
Read MoreValue’s Revenge
After several years of painful underperformance, value stocks have roared back to life recently. Will this trend continue? Keep reading to see my thoughts…
Read MoreHow To Whip Inflation In Your Investment Portfolio
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…
Read More2021 In The Markets: The Good, The Bad, and The Ugly
What were my good, bad, and ugly investment events of 2021? Keep reading to find out...
Read MoreThe Surprising Dividends of Transformed Investing
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.
Read MoreTen Obstacles to Investing--And How to Overcome Them
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.
Read MoreAre Stocks Too Expensive?
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...
Read MoreTwo Heads are Better Than One
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...
Read MoreNeed Money, But Don't Want To Sell Investments?
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...
Read MoreHow Much Can You Spend In Retirement Without Running Out of Money?
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?
Read MoreIs This The Hardest Time In History To Retire?
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?
Read MoreHow To Avoid Bear Markets In Retirement
Is it possible to avoid stock bear markets in your retirement portfolio? My answer might surprise you, keep reading to learn more...
Read MoreWhat Is The Right Amount In Bonds For Retirees?
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.
Read MoreThe Best Retirement Portfolio Has More Stocks Than You Think
How much should you have invested in stocks during retirement? The answer might surprise you, keep reading to learn more...
Read MoreCan You Afford To Lose Money When Investing?
Successful investing is about not losing money, right? The answer might surprise you. Keep reading to learn more...
Read MoreDavid Booth Reflects on Dimensional's 40th Anniversary
We can help people to achieve a better investment experience. Here's how...
Read MoreThe Next Normal
Read what Dimensional co-founder David Booth has to say about the rollercoaster of a year that we've lived through as investors.
Read MoreWhat Did You Think Would Happen?
There was a fair amount of skepticism surrounding our small-cap and value tilted Asset Class portfolios a year ago. Was it warranted?
Read MoreIs It OK to Invest at All-Time Highs?
Is it dangerous to invest when stocks have recently hit all-time highs? Keep reading to learn more...
Read MoreShould You Still Own International Stocks?
Investors are increasingly questioning the wisdom of including international stocks in their portfolios. Keep reading to understand the benefits of diversifying globally...
Read MoreLessons From the Last 12 Months
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...
Read MoreTo Bit or Not to Bit: What Should Investors Make of Bitcoin Mania?
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...
Read MoreThe Perils of Switching Portfolios
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...
Read MoreThe Other Market Bottom
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...
Read MorePure Value
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...
Read MoreThe Value in Sticking With Value
We've seen a considerable turnaround in the performance of value stocks compared to growth stocks in recent months. Keep reading to learn more...
Read MoreThink Investing Is a Game? Stop
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.
Read MoreHow Extraordinary Are The FANMAG Stocks?
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...
Read MoreInvestment Lessons from 2020
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!
Read MoreWhat Returns Should We Expect From Stocks?
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...
Read MoreOne For the Ages
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...
Read MoreDon't Bet Your Retirement on Dividends
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?
Read MoreExpecting the Unexpected
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.
Read MoreKen French on the FAANG Stocks
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.
Read MoreThe Most Dangerous Investing Move You Can Make
What is the most dangerous mistake in investing? Are you making it personally? Keep reading to find out...
Read MoreAugust Words On Wealth
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.
Read MoreThe FIVE Investment Decisions That Really Matter
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.
Read MoreIs It Value's Time To Shine?
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.
Read MoreAre Index Funds The Best Way To Invest?
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...
Read MoreThe Worst Time Ever to Buy Growth Stocks?
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...
Read MoreIntroducing Words On Wealth
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.
Read MoreWill Covid 19 Crush Your Retirement?
Will the Covid stock market decline crush the hopes you have for a comfortable retirement? Keep reading to find out...
Read MoreNever Destination
What can the Hall of Fame career of San Francisco 49er great Steve Young teach us about achieving financial success? Plenty, it turns out.
Read MoreUnintended Consequences
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?
Read MoreYou Are Invited To a Live Webinar Today With The Big Bang Theory's Dave Goetsch
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.
Read MoreThink You Can Time The Market? Think Again
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.
Read MoreThe Best Defense Is a Good Offense
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.
Read MoreIs Now a Good Time to BUY Stocks?
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?
Read MoreExtreme Stock Swings Are To Be Expected
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.
Read MoreDimensional on the Coronavirus
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.
Read MoreAvoiding an Irrational Response to Irrational Markets
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...
Read MoreCan You Retire on the S&P 500?
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...
Read MoreBig Trouble For Small Value?
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.
Read MoreBooth and Fama: The Market Has No Memory
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?
Read MoreRedefining Financial Advice
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...
Read MoreNovember Factors In Focus
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...
Read MoreThe Rest of the Story
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...
Read MoreLiving In Fear of a Downturn?
If you accept a different view of markets, the benefits can go way beyond just investing money. To understand this different view, keep reading...
Read MoreOne of Your Best Decisions
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...
Read MoreWhen The Levy Breaks
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.
Read MoreHalloween Factors In Focus
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.
Read MoreThe Little Things Add Up Over Time
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...
Read MoreCan You Explain Your Portfolio in Less Than 30 Seconds?
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.
Read MoreSeptember Factors In Focus
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...
Read MorePessimism Isn't Profitable
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?
Read MoreFinding Inspiration in a 50-Year Friendship
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.
Read MoreHow Great Is Dollar Cost Averaging? You (Still) Don't Know The Half of It!
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...
Read MoreAugust Factors In Focus
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?
Read MoreTools That Don't Work
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...
Read MoreThe Premium for Patience
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.
Read MoreThe Sophistication of a Simple Investment Approach
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.
Read MoreIt's Hard To Profit From Pessimism
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?
Read MoreDoes Your Wealth Manager Measure Up?
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...
Read MoreStocks Are More Volatile Than You Think
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...
Read MoreThe Flat Out Truth
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...
Read MoreJuly Factors In Focus
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.
Read MoreNow Isn’t the Time To Manipulate Your Portfolio
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...
Read MoreServo Has An Updated Address & Phone Number
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.
Read MoreI Bet You Didn't See That Coming?
Are there lessons for long-term investors from the surprising trajectory of interest rates this year? Keep reading to find out...
Read MoreJune Factors In Focus
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...
Read MoreDeja Vu For Value Stocks
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.
Read MoreWhere Are We In The Cycle? It Doesn't Matter
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.
Read MoreMay Factors In Focus
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...
Read MoreDFA Founder on Market Volatility
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.
Read MoreApril Factors In Focus
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...
Read MoreHave Stock Returns Been Too High?
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?
Read MoreWhat Goes Up
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...
Read MoreWHEN Are Your Returns?
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...
Read MoreMarch Factors In Focus
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!
Read MoreTraditional Financial Advice
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...
Read MoreDelivering True Value
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...
Read MoreIt's All About the Portfolio
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...
Read MoreIs International Investing Still Worthwhile?
Recent stock returns have been much higher in the US market than overseas. Does diversifying internationally still make sense? Keep reading to find out...
Read MoreFebruary Factors In Focus
How can we build on the legacy of investing legend John Bogle? Check out the February Factors In Focus newsletter to learn more!
Read MoreIt Pays To Be Optimistic
10 years ago the worst bear market since the Great Depression ended, and stock market optimists can claim yet another victory.
Read MoreIs Now a Good Time To Invest?
You have money to invest, are you better off waiting for the right time or just plunging in? Keep reading to learn the answer...
Read MoreFatal Attraction
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...
Read MoreJanuary Factors In Focus
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...
Read MoreDo Stocks Become Safer Over Time?
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...
Read MoreVolatility Is Your Friend
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...
Read MoreWhy Should You Diversify?
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.
Read MoreNovember Factors In Focus
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.
Read MoreOctober Factors In Focus
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.
Read MoreMidterm Elections: What Do They Mean For Markets?
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...
Read MoreManaging the Ups and the Downs
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...
Read MoreDiversification Works When You Need It Most
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?
Read MoreSeptember Factors In Focus
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.
Read MoreSix Ways To Beat a Bond Index
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.
Read MoreDon't Get Burned By The Hot Hand
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.
Read MoreAugust Factors In Focus
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.
Read MoreWrong Place or Wrong Time?
What is a bigger risk, investing in the wrong place or investing at the wrong time? The answer may surprise you...
Read MoreBeware of Stock Market Forecasts, Even Those From John Bogle
Vanguard founder John Bogle often advises investors to avoid stock market forecasts. Turns out, this advice applies even to his predictions.
Read MoreDavid Booth on a Trade War and Emerging Markets
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.
Read MoreJunk Bonds: Just Say No
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....
Read MoreDon't Believe The Hype
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...
Read MoreJuly Factors In Focus
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.
Read MoreOptimism Is The Only Realism
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....
Read MoreServo Is On The Move!
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.
Read MoreThe Seven Roles of a Financial Advisor
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.
Read MoreKnowing Is Half The Battle
How dramatically would your investment decisions change if you knew the truth about long-term investing? Keep reading and let's find out!
Read MoreJune Factors In Focus
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."
Read MoreInvestopedia's "The 100 Most Influential Financial Advisors"
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.
Read MoreMay Factors In Focus Newsletter
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...
Read MoreBig Returns Come In Small Packages
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?
Read MoreWho Wants To Be a Millionaire?
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.
Read MoreInvesting Lessons From Mom
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!
Read MoreThe More You Know, The Better You Do
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.
Read MoreApril Factors In Focus
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.
Read MoreWhen Interest Rates Rise
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.
Read MoreAlways Looking Out For Clients
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...
Read MoreTuning Out the Noise
Investment markets are volatile, but that doesn't mean your investment decisions need to be.
Read MoreMarch Factors In Focus
We have posted the March edition of our Factors In Focus newsletter to the website. Be sure to check it out!
Read MoreThe Most Important Investment Advice?
What is the most important piece of investment advice? It's far simpler and harder than you think.
Read MoreThe Best Investment Approach
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.
Read MoreFebruary Factors In Focus
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.
Read MoreHow To Think About Market Volatility
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.
Read MoreBeware of Financial Media Bias
The financial media's negativity narrative is on constant display. But that doesn't mean you have to fall victim to in.
Read More1,000 Points Ain't What It Used To Be
The Dow Jones Industrial Average fell over 1,000 points yesterday. But 1,000 points ain't what it used to be.
Read MoreJanuary Factors In Focus
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!
Read MoreWhat Have You Done For Me Lately?
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?
Read MoreAbout to Retire or Recently Retired? You'll Want to Read This...
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!
Read MoreMirror Images
Asset class returns are mostly random from year to year. But that doesn't mean we cannot learn from the randomness.
Read MoreThis Is What Diversified Stock Portfolios Do
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....
Read MoreThat Was Fun!
2017 was a good year for global stock markets. How good? Keep reading...
Read MoreNovember Factors In Focus
The November edition of our Factors In Focus newsletter, "Legends of the Fall," has been posted. Be sure to check it out!
Read MoreWorth the Wait
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.
Read MorePanic Isn't a Profitable Strategy
Patience, not panic, will make and keep you wealthy. Here's one vivid illustration of this reality.
Read MoreHow Much Have You Lost So Far?
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...
Read MoreThis Is What Small Value Stocks Do
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.
Read MoreThis Is What Stocks Do
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.
Read MoreOctober Factors In Focus
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!
Read MoreLooking For Value In All The Wrong Places
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...
Read MoreThe Cocktail Party Fallacy
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.
Read MoreBetter Perspectives on Black Monday
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.
Read More50 Years In The Making
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.
Read MoreSeptember Factors In Focus
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...
Read MoreShould You Just Buy a Few Blue Chips?
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?
Read MoreYou Can't Always Get What You Want
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.
Read MoreThe Easy Money Has Been Made
"The easy money has been made." You've probably heard this line lately as it relates to your investments. But is it true?
Read MoreThis Ain't Good
Have you looked at the top holdings in a traditional index fund lately? It ain't good...
Read MoreBig Returns Come In Small Packages
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.
Read MoreThe Wrong Time To Fire a Fund
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.
Read MoreAugust Factors In Focus
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...
Read MoreHow the Smart Money Invests
The "smart money" earns far higher returns than the average investor. Here's one surprising reason why.
Read MoreRevisiting Dow 36,000
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?
Read MoreMore Time = More Happiness
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?
Read MoreJuly's Factors In Focus
We've posted the July edition of Factors In Focus. Check it out!
Read MoreAre We Nearing The End of the Bull Market?
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...
Read MoreAbout that 30-Year Retirement...
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?
Read MoreHow Long Will I Have To Wait?
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.
Read MoreThe Big Stuff
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.
Read MoreFactors In Focus For June
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...
Read MoreInvestopedia's List of 100 Most Influential Advisors
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.
Read MoreAn Enviable Track Record
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.
Read MoreThe Only Thing You Have To Fear
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.
Read MoreDon't Believe Everything That You Read
"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...
Read MoreStill Managing Market Highs
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.
Read MoreAre Global Returns Good Enough?
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%...
Read MoreIs Bogle Right?
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...
Read MoreIt's Not What You Don't Know
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...
Read MoreMoving the Goalposts
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.
Read MoreWhere Should Your Wealth Be?
Hopefully, this chart helps you decide...
Read MoreYou've Got Me, Who's Got You?
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.
Read MoreAre You Missing Something?
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.
Read MoreHow Is The Manager of The Decade Faring?
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?
Read MoreToo Many Funds To Count
Investment management and retirement planning have become needlessly complex. Don't believe it? Check out Exhibit A: the John Hancock Retirement Date Funds.
Read MoreWe Don't Know What We Don't Know
This from a Morningstar article this morning: "Since the mid-1990s, value stocks have roughly matched growth stocks' returns..." Really?
Read MoreWhat's Your Forecast?
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...
Read MoreMorgan Stanley Sticks It To Investors
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...
Read MoreSell Everything?
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.
Read MoreTax-Efficient Investing
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.
Read MoreIt's Higher Than It Looks
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.
Read MoreIt's Always Hard
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...
Read MoreHow To Deal With Uncertainty
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.
Read MoreAsset Class Returns: They Are What We Thought They Were
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...
Read MoreBeware of Nobel Laureates Crying Wolf
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...
Read MoreAn Investment House of Horror
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...
Read More13 Funds That Beat The Market Over 15 Years
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...
Read MoreThere Is No Pattern
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.
Read MoreIs Indexing Enough?
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.
Read MoreWhat Works Isn't Always Working (or, Why Beating the S&P 500 Isn't A Goal)
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.
Read MoreSorry If You Got The Wrong Impression
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.
Read MoreCan You Guess The Winner? Or The Loser?
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.
Read MoreWhat Would You Do With $315,000,000,000?
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....
Read MoreDavid Booth on Global Diversification
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.
Read MoreGood Things Come To Those Who Wait
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...
Read MoreCan You Handle The Truth?
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...
Read MoreInvesting In Retirement, Year By Year
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.
Read MoreFool Me Twice?
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?
Read MoreAre You Really Reducing Risk?
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...
Read MoreYour Broker Ain't Your Buddy
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...
Read MoreThe Only Returns That Matter
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...
Read MoreEarning Your Investment Returns
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.
Read MoreDon't Call It A Comeback
The percentage of active managers who are beating the market this year is on the rise. I wouldn't quite call it a comeback.
Read MoreI'm Just Getting Warmed Up
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...
Read MoreKnowing Isn't Doing
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.
Read MoreThe Perils of Past Performance
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.
Read MoreInvesting In One Chart
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.
Read MoreA Family Affair
I recently sat down to review my parents' investment plan. Here's what I saw, and what I did about it.
Read MoreA Candid Admission From Steve Forbes
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.
Read MoreLong/Short Funds Have Been Real Losers
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.”...
Read MoreThis Isn't A "Trump Trade"
The recent run-up in stock prices isn't a "Trump Trade." Market gains and losses are always more complex than simple narratives imply.
Read MoreImplementing Great Investment Ideas
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...
Read MoreBe Careful With Your Bonds
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.
Read MoreFunny But True
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.
Read MoreMarty Bannon's Investment Mistakes
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.
Read MoreIt's All About Expectations
Stocks have experienced strong gains in the last few months. We now have a better understanding why.
Read MoreWhen Interest Rates Rise
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?
Read MoreHow Investors Could Have Survived The 1970s
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.
Read MoreWhy You Stick Around In a Tough Market
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.
Read More