Stay informed with the latest updates from the Rothman Investment Management team and explore articles and resources to support your financial journey.
Bloom introduces the concept of the “arrival fallacy” which holds that meeting a goal will bring a lasting sense of satisfaction. He shares his own journey. He was financially successful, but a friend pointed out that since he only saw his parents once a year, he would probably only see them about fifteen more times before they died.
The Behavioral Portfolio was written for financial advisors, but would also be useful for engaged individual investors.
Your asset allocation decision is one of the most important decisions you will make in your life and is worthy of significant time and thought. Almost all of your returns and risk will be determined by asset class selection.
The best predictor of an investment’s long-term return is its current yield – for fixed income that’s the effective interest rate and for stocks it’s the earnings yield. As of September 2021, both were lower than they had been in over a century. Ilmanen notes that after four decades of very good investment returns, investors have come to expect higher than normal returns instead of the lower than normal expected returns corresponding to today’s price levels.
Favorite books read in 2024: Supercommunicators, Atomic Habits, Take the Stairs, Verbal Judo, Dollars and Sense, Nudge: The Final Edition, Give and Take, Masters of the Air and more...
This fun read was Richard Thaler’s account of his both his own journey and how behavioral economics started as a fringe movement and ended up being widely accepted as more explanatory of how decisions are made in the real world than classical economics.