Observations on Risk Tolerance and Risk Capacity

The famous Temple of Apollo at Delphi—an important source of prophetic wisdom for the ancient Greeks—is well known for the two inscriptions on its portal: Know Thyself Nothing in Excess As several world capital markets continue to flirt with record high asset price levels, it is worth revisiting Delphic wisdom in order to prepare for… Read more »

2017 Q3 Quarterly Update

The world’s equity markets combined to produce strong returns during this year’s third quarter. The S&P 500 gained 4.48% and the MSCI EAFE Index of foreign stocks advanced 5.47%. Over the trailing 12 months, the MSCI All Country World Index has gained a remarkable 18.99%, after adjusting for foreign currency translation. Fixed income markets have… Read more »

2017 Q2 Quarterly Update

Stock prices continued their ascent in the second quarter, adding to the positive returns posted earlier in the year. The S&P 500 Index gained just over 3.0% for the three-month interval, pushing the year-to-date return to 9.3%. Following their stellar returns in 2016, share prices of smaller U.S. companies did not fare quite so well…. Read more »

2017 Q1 Quarterly Update

The U.S. stock market opened positively this year. Both the Dow Jones Industrial Average and the S&P 500 reached all-time highs, with a quarterly gain of 5.2% and 6.1%, respectively. Foreign markets advanced as well; the MSCI Europe Index outperformed the U.S. for the quarter, finishing up 7.6%. The MSCI Pacific Index closed out the… Read more »

Portfolio Management: Theory & Practice

Since our inception, the core mission of Schultz Collins has been to help investors make rational, informed and intelligent investment decisions. Prudent decision making, however, requires a basic understanding of capital markets and a familiarity with evolving research in the field of Financial Economics. In 2006, we published Portfolio Management: Theory and Practice to summarize… Read more »

References for Portfolio Management: Theory & Practice

Below is a by chapter listing for all the links in our Portfolio Management: Theory & Practice publication. Preface Note 09 – A Gentle Introduction to Investing Note 13 – Course Notes for USF Masters of Science in Financial Analysis Chapter One Note 09 – Well-Performing Portfolios and Well-Disguised Insolvency Note 13 – Diversification vs…. Read more »

A Gentle Introduction to Investing

How can people make good investment decisions when they don’t know the difference between a stock and a bond? Many beginning investors are intimidated by the prospect of learning about economics and finance – subjects that, for many, are deadly dull – or of meeting with salespeople trying to push investment products and schemes, or… Read more »

Money Market Reform: What You Should Know

The ubiquitous money market mutual fund has been a hot topic at the U.S. Treasury Department and the Securities Exchange Commission (SEC) since the Great Recession and Financial Crisis of 2008/2009. The Government’s concerns are based on actions taken by institutional investors during the crisis when a large institutional money market fund could no longer… Read more »