Byron Moore, CFP® and Mike Jones

Investing Truths series

Truth No. 10: "Lies, damned lies, and statistics"... even in investing

By Mike Jones, posted September 18th, 2014

Most people think of investing as a personal activity that directly impacts their individual future.  However, most of what we are taught is really only applicable to investors en masse, i.e. the market-at-large, and over large periods of time.  This month's column brings us to the tenth and final point that I believe every investor should know prior to committing funds to any investment program.

Attributed to British Prime Minister Benjamin Disraeli and popularized by Mark Twain, this quote describes the persuasive-and sometimes downright manipulative-nature of the presentation of some numbers and statistics.

Truth No. 9: When investing, seek ye first Alpha

By Mike Jones, posted August 21st, 2014

Most people think of investing as a personal activity that directly impacts their individual future.  However, most of what we are taught is really only applicable to investors en masse, i.e. the market-at-large, and over large periods of time.  Over the next several months I will share 10 points that I believe every investor should know prior to committing funds to any investment program.

What is Alpha?

Investing Truth No. 8: Good news! Historically markets have risen over 2/3 of the time

By Mike Jones, posted June 19th, 2014

Most people think of investing as a personal activity that directly impacts their individual future.  However, most of what we are taught is really only applicable to investors en masse, i.e. the market-at-large, and over large periods of time.  Over the next several months I will share 10 points that I believe every investor should know prior to committing funds to any investment program.

Did you know that, since 1926, the annual return of the S&P 500 has risen 63 out of 87 years?

Investing Truth No. 7: Diversification works... until it doesn't

By Mike Jones, posted May 15th, 2014

Most people think of investing as a personal activity that directly impacts their individual future.  However, most of what we are taught is really only applicable to investors en masse, i.e. the market-at-large, and over large periods of time.  Over the next several months I will share 10 points that I believe every investor should know prior to committing funds to any investment program.

I use the Risk/Reward Continuum (pictured below) when discussing or explaining investments and the need for diversification with clients.  It gives a great visual for demonstrating how to spread out risk as well where certain asset classes fall along the continuum.

Risk Reward Continuum.JPG

Investing Truth No. 6: Fear and greed make investors do dumb things

By Mike Jones, posted March 21st, 2014

Most people think of investing as a personal activity that directly impacts their individual future.  However, most of what we are taught is really only applicable to investors en masse, i.e. the market-at-large, and over large periods of time.  Over the next several months I will share 10 points that I believe every investor should know prior to committing funds to any investment program.

Listen up! This month's investing truth is perhaps one of the most important for investors to understand. If you don't, you could end up making one mistake after another throughout your investing life, failing to experience the potential returns that the markets could have afforded you.

Investing Truth No. 5: Financial crises happen... everywhere and to everybody

By Mike Jones, posted February 20th, 2014

Most people think of investing as a personal activity that directly impacts their individual future.  However, most of what we are taught is really only applicable to investors en masse, i.e. the market-at-large, and over large periods of time.  Over the next several months I will share 10 points that I believe every investor should know prior to committing funds to any investment program.

Believe it or not, the 2008 market meltdown was not an anomaly. Every industrialized country--yes, every--has experienced a decline of 75 percent or more in its stock market at least once in the last 100 years.

Investing Truth No. 4: Declining markets are riskier

By Mike Jones, posted December 16th, 2013

Most people think of investing as a personal activity that directly impacts their individual future.  However, most of what we are taught is really only applicable to investors en masse, i.e. the market-at-large, and over large periods of time.  Over the next several months I will share 10 points that I believe every investor should know prior to committing funds to any investment program.

Boy was last month's column on uptrending markets fun to write!  If markets would only go up all the time... all we'd ever have to do is read our account statements each month to see how much more money we've made.

Investing Truth No. 3: Every investor needs a trend in order to make money

By Mike Jones, posted November 15th, 2013

Most people think of investing as a personal activity that directly impacts their individual future.  However, most of what we are taught is really only applicable to investors en masse, i.e. the market-at-large, and over large periods of time.  Over the next several months I will share 10 points that I believe every investor should know prior to committing funds to any investment program.

One of the oldest sayings in the investment world is "the trend is your friend." Every investor needs a trend in order to make money.

Here's why.

Investing Truth No. 2: You haven't completely missed the boat!

By Mike Jones, posted September 19th, 2013

Most people think of investing as a personal activity that directly impacts their individual future.  However, most of what we are taught is really only applicable to investors en masse, i.e. the market-at-large, and over large periods of time.  Over the next several months I will share 10 points that I believe every investor should know prior to committing funds to any investment program.

Last month I discussed secular bull and bear markets and showed how "successful" investing is contingent on your birthday. Recall that when you begin investing--because of the long term cycles experienced in the market--often impacts returns far more significantly than what you invest in.

Investing Truth No. 1: Good investing really starts the day you are born

By Mike Jones, posted August 15th, 2013

Most people think of investing as a personal activity that directly impacts their individual future.  However, most of what we are taught is really only applicable to investors en masse, i.e. the market-at-large, and over large periods of time.  Over the next several months I will share 10 points that I believe every investor should know prior to committing funds to any investment program.

Everyone's experience with investing will be unique. And, for better or worse, how well you do with your investments will be largely determined by your birthday.

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