Most investors are focused on outcome rather than process. They judge success on whether or not the value of an investment increases. While we all want to see positive returns from our investments, following a consistent process offers the best chance of sustained, long-term success. When hearing about another investor’s successful investment, those that focus […]
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US Labor Market Trends – A Closer Look
The current economic recovery is often referred to as the jobless recovery. Although the unemployment rate has fallen from 10% to 6.6% over the last four years, the related data also shows that many Americans have stopped looking for work altogether. After increasing steadily for decades as women and baby boomers entered the market, the […]
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Weather and Economic Data
The harsh weather we have been experiencing this winter has in many cases tempered the rosier view of the economy that most had as we entered 2014. It seems the debate among market economists is what impact this winter’s lousy weather has had on economic data. U.S. industrial production has declined, retail sales have fallen […]
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Recency Bias
At its core, fundamental-based investing is an intellectual exercise. It involves performing research and analyzing financial and environmental data about companies and the industries in which they participate. But, we are only human, and there are many behavioral biases that can cloud our views. One example is recency bias, or the tendency of stock market […]
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Jobs Growth Falls Short Again
On Friday, the Labor Department reported that U.S. payrolls rose a seasonally adjusted 113,000 in January, falling well short of expectations. January also marked the second consecutive disappointing jobs report – only 75,000 jobs were added in December. This data was somewhat counterbalanced by net upward revisions for the prior three months of 77,000 jobs. […]