Tax Efficiency: Vast Benefits Easily Overlooked       
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Tax Efficiency: Vast Benefits Easily Overlooked       

Traditional investment advice normally focuses on allocation into buckets. These buckets could be traditional mutual funds, or ETFs, or managed accounts holding individual stocks. In most cases, the allocation buckets are tactically rearranged, and the securities within mutual funds and managed accounts are also actively rearranged. This process of rearranging can easily result in realized…

Expect to Bleed at the Cutting Edge
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Expect to Bleed at the Cutting Edge

It is quite fun to try to predict the future and invest in companies in the sweet spot of your prognostications. Investing in long-term growth trends with short-term dislocations is a viable strategy, and we do this often. But finding the “next big thing” is entirely different and is fraught with pitfalls. Such positioning comes…

Segment Unveils Initiatives to Navigate Market Volatility
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Segment Unveils Initiatives to Navigate Market Volatility

With almost 40 years of investing experience, Baumgarten is revealing how he applies keen knowledge and his eye for tracking the latest financial developments to Segment Wealth’s advisory practice. “During inflation, cash is under attack, so items such as property and investments will generally do better. Specifically assets like collectibles, ranches, prime real estate, even…

Resist ESG Investing
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Resist ESG Investing

Environmental, Social & Governance (ESG Investing) is the new popular trend in investment evaluation whereby investors use non-financial factors to screen investment options. As it gains popularity for its feel-good effects, it is currently enjoying outsized results as investors jump on the bandwagon. But as ESG separates its winners and losers, as is clearly the…

ESG? Not So Fast.
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ESG? Not So Fast.

Gil penned a piece on ESG Investing in Financial Advisor Magazine! Do well by doing good. That’s the trendy, feel-good mantra of ESG (environmental, social, governance) investing proponents. It’s much the same claim as electric cars being environmentally friendly. The carbon footprint of an electric car battery is far worse than a gas-powered car’s lifetime of…

Percentage Returns Are Not Created Equal
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Percentage Returns Are Not Created Equal

There is nothing more mesmerizing than eye-popping percentage returns. While investors equate high returns to transactional intelligence, studies routinely show that randomness and luck are the far more likely explanations. Investors often don’t fully appreciate that all percentage returns are not created equal. These occasional high returns earned by aggressive investments give them a marketing edge when investors…

Predictably Irrational Investing
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Predictably Irrational Investing

The field of economics has long assumed that people make decisions that optimize their own utility, and to derive the greatest benefit for themselves. However, psychological studies show that we humans do not do this, but rather we often make irrational choices, and we do so predictably. In this case, irrational investing choices. The reason we…

Ego Rush of Short-Term Investment Victories
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Ego Rush of Short-Term Investment Victories

Back in the pre-Covid glory days, when you could have charity golf tournaments, I played in the LifeHouse tournament at Carlton Woods. I’m not much of a golfer, and because it’s such a time-consuming hobby, I tend to stick with things for which I have a natural propensity. I mention this because this tournament was…

Odds-On Favorite Stock For 2021
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Odds-On Favorite Stock For 2021

Whatever you are doing that’s working, stop it. The cyclicality in investing is profoundly impactful. Unfortunately, most investors misread the signals and misplay their hand. They look for trends that have persisted and invest late in the game, often just in time for the reversal. Therefore, investing in last year’s loser is often a better…

Exotic Investment Strategies That Don’t Really Work

Exotic Investment Strategies That Don’t Really Work

Most investors think of stock ownership decisions as somewhat binary: buy/avoid; sell/keep. There’s another choice: Sell what you don’t own in hopes of it declining. This is called shorting. Segment almost never shorts because the math of ownership is simply too compelling. Yet, with the trauma inflicted by the market decline of 2008-2009, many investors…

Ways to Reveal Hidden Costs in Your Portfolio
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Ways to Reveal Hidden Costs in Your Portfolio

In speaking with investors and advisors over the past few months, I have come to realize that a serious misunderstanding exists when it comes to the facts on advisory fees. One recurring area of confusion is how account level fees and product fees mix with one another. Clients nearly always assume that the account level fee they…

So You Want Bitcoin?

So You Want Bitcoin?

Bitcoin is all the rage with prices up a whopping 900% for 2017. One bitcoin breached the psychologically important $10,000 mark Tuesday for the first time and then shot up to $11,000 by Wednesday. As a primer, bitcoin is a digital currency, which means it has no central bank or government that backs it. Given…

The Tough Stuff That Separates Investors From Savers
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The Tough Stuff That Separates Investors From Savers

October 9th, 2017 marked the tenth anniversary of the stock market peak in 2007. In the months that followed this peak, the market plunged deeper and deeper until the week ending on October 10, 2008 became known as the worst stock market week on record. I took a moment to reflect on the damage this…

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