Wealth Management

Our goal is to help our clients understand why a portion of their portfolios is invested in international financial markets (20% to 50% of the equities may be allocated in Europe, Asia, and Emerging Markets). Not only do Emerging Markets have much lower debt levels and a younger population, international stocks also seem to be currently cheaper than U.S. stocks.

See why at http://www.tinyurl.com/bfm-nwslet-Oct2012-Diversify

The European crisis created lots of volatility, uncertainty, fear... but also opportunities. Furthermore, the Merkozy alliance is over and Europe may focus more on growth.

See more affects of globalization at http://www.tinyurl.com/BFM-July2012-GoGlobal

Some of you have recently asked for our opinion on the financial markets and trends. Let me present here our view.

See our views at http://tinyurl.com/bfm-nwslet-Mar2011-Bull-Japan

First, we offer our most heartfelt condolences to all those who lost their lives, to their families, and to all those now in unbearable circumstances. Placing numerical values on the economic losses is an intolerable insult to all those who lost their lives and to their families and relatives, and is morally indefensible.

Uncertainty is the operative word in Japan, but as we take a step back and think about the broader economic impact, it’s worth noting that this natural disaster is happening at a time when the U.S. data looks solid (good valuation vs. bonds/cash, the market has a free cash flow yield close to 7%, among the highest in history,  and balance sheets have never been better, confidence, consumer spending, hiring, and the availability of credit are increasing, and equity funds see inflows).

See more at http://tinyurl.com/bfm-nwslet-Mar2011-Bull-Japan

Dalbar Research Institute shows that investor’s performance does not equal investment performance. They found the following annualized returns for investors from 1987 to 2006 (similar results are found for different time period)

See their findings at http://tinyurl.com/bfm-nwslet-Nov2010-Fail-Return

Many of you know that I like behavioral economics.

If you want to learn more about behavioral finance and the role of Psychology, see some useful videos here 

http://tinyurl.com/bfm-nwslet-Sep2010-Behavioral