The 4 biggest investment performance myths -- and how they can torpedo advisor-client trust
How to sidestep Wall Street mythology and give clients a clarified perspective on the ups and downs of their investments
Jeff Mello is latest to join eMoney's talent exodus but CEO Ed O'Brien says it's healthy renewal at a firm that added several hundred people since Fidelity bought it
The ex-Goldman Sachs director of strategy and planning at eMoney joins a growing list of departures exacerbated, sources say, by Fidelity putting a wobbly performance reporting software project -- and staff -- on its plate
February 28, 2020 at 11:09 PM
Pete Giza and Damon Deru go for Holy Grail of portfolio rebalancing with software that shuffles stocks, bonds... and asset classes; Believe it?
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June 11, 2019 at 9:49 PM
Top Executive: Joe Mansueto
Kenneth B. Kann
Very well put. I’ve often tried to get clients and prospects to better understand reported performance meausures relative to specific (vs generalized) time frames.
I like your approach about explaining these concepts in easy-to-understand language and the idea of discussing risk comfort levels. Volatility is abstract, so I suggest asking investors for maximum loss, as measured from peak-to-valley percentage, as the main risk tolerance question.
You conclude that MPT is not invalid. If you take the definition of valid being “producing the desired result” or “effective,” there are many reasons it’s not effective for most, if not all practitioners, beginning with the fact that the inputs to the model are unstable and cannot be predicted with much confidence, and so that alone renders the outputs unreliable.