Your happiness and your neighbour

Your happiness and your neighbour In a recent article I discussed the transient nature of Enough. Enough seems to be…. “Just a little bit more”. Our expectations increase along with our possessions resulting in no permanent gain in happiness. Happiness gains from merely “having more” are short lived. What is truly important to you? We…

The Ulysses Pact

The Ulysses Pact – keeping investors committed You only benefit from a long-term plan if you stick to it. Fund flows and behavioural research confirms that we don’t. We are hardwired to feel that we should act when we experience stress. Market volatility causes us to make decisions that hurt us in the long-term. It…

The Transient Nature of Enough

The Transient Nature of Enough You can’t have a goal if you don’t know what you need. The goal is only personal if it is the result of an internally guided process rather than from external inputs. When you conduct an honest audit, what are the needs and expectations that must be satisfied? Planning for…

The End of History Illusion

The End of History Illusion Your values and priorities change over time. When we reflect on our younger selves, we identify how much we have grown and changed over time. When we look ahead, we expect to stay the same. The extent to which we underestimate how much we will change in future has been…

Revisiting the Advisors Alpha

Revisiting the Advisors Alpha Many articles have been written about the advisor’s value for investors. Although a generalisation, evidence suggests that clients are better of engaging with an advisor when making investment decisions. The question that needs to be considered is the source of this “alpha”. In a recent article referencing the work of David…

Don’t expect the average

Don’t expect the average How often do you expect to experience your target return in any given year? You probably heard that the stock market generates about 10% annual returns on average. Sounds pretty good, doesn’t it. From 1926 to 2020, the average return for the U.S. stock market was basically 10% per year. That’s…

Deathbed wisdom and happiness

Deathbed wisdom and happiness What memories will race through your mind as you approach the end of your life? We confuse wealth with more money. How we spend our time directly impacts our well-being. People often spend more time at work to earn more money for their families. Sadly, often the family would prefer more…

Chasing the heat gets you burned

Chasing the heat gets you burned Fund flows are explained by short-term recent performance. There is a near perfect correlation between a fund’s recent performance and the flow of assets. A fund with strong recent performance, typically experiences strong inflows. Conversely, when performance was poor it suffers outflows. This is evident in a vast body…

The Great Resignation

The Deeper Meaning and Implications of “The Great Resignation” By November 2021 nearly 5 million Americans had left their jobs. Clearly a broad-based global shift in mindset is underway which has affected how we think about life and what we value. People are questioning fundamental assumptions and they are re-evaluating what truly matters most to…