Blog
Is it Time to Panic?
Common sense, simple math, or just a basic understanding of history should have told us that the stock market would have a correction at some point. The problem was deciding when it was going to happen. Before the market went up 30% last year? Before it went up 60% in the last five years or…
The Most Powerful Force in the Universe
According to Albert Einstein, the most powerful force in the universe isn’t nuclear fission, electromagnetism, or particle physics; it is compounding, the ability of things to grow exponentially. This phenomenon allows for something small to expand into something massive, even if growing very slowly. A 10-inch plant growing at a barely noticeable 20% a year…
Diversification
IS THE ONLY PROVEN WAY TO REDUCE RISK WITHOUT SACRIFICING LONG TERM RETURNS. It’s obvious. Own one stock or bond and a single event can change your net worth in seconds. Own a couple dozen diversified by industry and a single event has much less impact. True, a single positive event will also have less…
The State of the World
Here is a little test to see how much you know about the state of the world. Is it getting better or worse? Is there hope for humanity or are we on a slippery slope to extinction? In 1950 the average length of human life in the world was 35 years. What is it today?…
Volatility
There are two definitions for volatility. The scientific one: “The degree of variation of a trading price over time as measured by the standard deviation of logarithmic returns.” Very few people know or understand what that means, but it doesn’t stop them from using the term. Then there is the more common definition: “The liability…
Rational vs Irrational Investing
It is estimated that 90% of the US equity trading is irrational, having nothing to do with the fundamentals of companies or investor’s judgement. On any given day, about 50% of trading is computerized high frequency trading, conducted so fast that by necessity it is done from computer to computer without human hands, much less…
The Compass Advantage
Investors choose Compass to manage their assets for many reasons. While everyone has their own priorities, the following attributes are often cited as most important by our new clients and those who have been with us for generations. HONESTY Honesty is an investment advisor’s most important attribute. It is more than being assured that someone…
End of content
End of content