Posts by Darryl H

For most investors, simplicity is better. However, far too often investors have either too many investment strategies or no strategy at all. One of the major drawbacks of having multiple equity strategies is that it is not necessary, confusing, and can be more costly. It is understandable why a family of mutual funds would have…

First, what is a back-test? A back-test is going back in time to evaluate an investment strategy that you think can provide returns greater than the broad market as defined by the S&P 500 or another popular index. There are software programs out there that allow you to back-test a strategy. However, if you have…

The debate continues about whether it is possible to outperform the S&P 500 over time. At Investoristics, we think the answer is yes especially if your approach is based on common sense and is grounded in investment fundamentals. In a recent article, we discussed our view on the number of stocks most investors need for…

How many stocks do you need to diversify your portfolio for adequate protection.  Well, it depends.  If you know what you are doing, say some, then you only need a dozen stocks or less in your portfolio.  Warren Buffett is famous for saying that “Diversification is protection against ignorance.”  We won’t get into that debate,…

Most are familiar with the phrase, “Past performance is no guarantee of future results” which simply implies that just because your investment strategy did well for 18 years doesn’t mean the success will continue.  So why does everyone want to know how well a strategy has done in the past if it doesn’t guarantee future…

The literal answer to this question is probably yes but, unfortunately, not because you have experienced extremely high returns. With the exception of “do it yourself” investors or high net worth individuals, for efficiency, the investment strategy recommended by your adviser is most likely predetermined and selected from a chart of strategy ideas which are…

When market returns are well above the average there is likely to be a reversion to the mean but as a long-term investor what should you expect? There have been 34 times since 1926 that the S&P 500 has returned 20% or more through 2018. The average total return since 1926 through 2018, for 5-year…

For most investors the answer to this question is probably yes as too many individual investors allow fear and greed to rule the day. If you are like many investors who left the equity markets after the 37% decline in 2008 you would have missed out on a 13.1% average return from 2009 through 2018…

For Millennials, the coronavirus has created an investment opportunity. As the stock market plummets, Millennials should be gearing up for one of the best long-term investment opportunities in their lifetimes. Historically, investors entering the market after declines of 10% or more during a calendar year would have earned an average of 2.1% more than the…

Concerned about the current market turbulence, is it making you seasick? Rarely does the news being broadcast touch on the basics that would relieve the fear felt by the average investor. Thus, it is not surprising that people feel queasy about today’s market.  So, should you be worried? That of course depends on who you…