Rick Ferri’s Top Ten List of When Not To Invest

Oh, how painful it has been to learn these lessons. I’ve been around the investment industry for a long time and have made plenty of mistakes. I’ve also seen a lot of variations on the theme of investing, some of which have made the industry better and others of which seem like nothing more than [...]

Share

Why Optimal Portfolios Are So Difficult To Create

Harry Markowitz won a Nobel Prize in Economics in 1990 for his work on a theory of portfolio management for individual wealth holders. Since that time, Modern Portfolio Theory (MPT) has become the bedrock for creating best-practice portfolio selection methods. Creating an optimal portfolio consists of estimating a portfolio’s future risk and expected return as [...]

Share

So Few Generals, So Few Top Fund Managers

I was a brand-spanking new Second Lieutenant in the Marine Corps 35 years ago. We graduated 135 “butter-bars” from my Officer Candidate class. We were called that because the single, brass bar rank insignia looks like a bar of butter. We had a lot of pride and ambition on commissioning day, and all the opportunity [...]

Share

What CFOs Think About the Market

Tune into any financial news network and you’ll hear a continuous drumbeat of Wall Street analysts spouting their most recent stock market forecast. I find there is value to these forecasts – entertainment value – especially from the forecasters who foresee grandiose returns or impending doom. In terms of investment value, if these forecasts serve [...]

Share

Let’s Celebrate the Independent Adviser

With the Fourth of July fast approaching, I am reminded of the many benefits of independence, especially independent investment advice. You would think that independent advice would be any adviser’s highest calling. Surely our mission should be to aggressively avoid direct or indirect conflicts of interest, so we can freely employ any funds or investments [...]

Share