New title

  • Mesa Financial Group on Facebook
  • Mesa Financial Group on YouTube
  • Mesa Financial Group on LinkedIn

Insights



Talk to Your Advisor

In addition to the usual resolutions, the new year is a great time to talk to your financial advisor, revisit your goals and your long-term plan, and discuss any changes in your life or circumstances. This way, you can make sure that your plan accurately reflects where you are now and where you want to be. A great place to start is the Financial LifeMap below. Your financial advisor — working in close partnership with other experts, such as your
Read more

4 Charts Every Investor Should Know. #1: Let Markets Work For You

Sometimes a picture really can make things easier to understand. Many of the important ideas and concepts you need to know as a long-term investor don’t require lengthy explanations. They can be as simple as the four charts we’ll share in our upcoming Insights. Together, these charts illustrate foundational principles of investing such as focusing on the long term, diversification, and not letting emotions compromise your portfolio. Hypothetical value of $100 invested at the beginning of 1972 and kept invested
Read more

What You Pay, What You Get: Connecting Price and Expected Returns

It has been more than 50 years since the idea of stock prices containing all relevant information was put forth. Information might come in the form of data from a company’s financial statements, news about a new product, a change in the regulatory environment, or simply a shift of investors’ tastes and preferences toward owning different investments. Information is incorporated into security prices through the buying and selling process. While fair prices may not depend on a certain level of
Read more

Tuning Out the Noise

For investors, it can be easy to feel overwhelmed by the relentless stream of news about markets. Being bombarded with data and headlines presented as impactful to your financial well-being can evoke strong emotional responses from even the most experienced investors. Headlines from the ”lost decade”1 can help illustrate several periods that may have led market participants to question their approach. May 1999: Dow Jones Industrial Average Closes Above 11,000 for the First Time March 2000: Nasdaq Stock Exchange Index
Read more

E+R=O, a Formula for Success

Combining an enduring investment philosophy with a simple formula that helps maintain investment discipline can increase the odds of having a positive financial experience. “The important thing about an investment philosophy is that you have one you can stick with.” David Booth, DFA Founder and Executive Chairman AN ENDURING INVESTMENT PHILOSOPHY Investing is a long-term endeavor. Indeed, people will spend decades pursuing their financial goals. But being an investor can be complicated, challenging, frustrating, and sometimes frightening. This is exactly
Read more

The Perils of Trying to Avoid the Worst Days in the Stock Market

Financial markets ebb and flow, and although it is natural to feel excited when stock markets do well and concerned when stock markets drop, it’s not usually a good idea to let those emotions dictate changes to your portfolio. As you can see below, the third-best one-day return occurred only two days after the worst one-day return (stock market crash of 1987). Most investors who bailed out of the markets in response to the crash would have missed a significant
Read more

Sailing with the Tides

Embarking on a financial plan is like sailing around the world. The voyage won’t always go to plan, and there’ll be rough seas. But the odds of reaching your destination increase greatly if you are prepared, flexible, patient, and well-advised. A mistake many inexperienced sailors make is not having a plan at all. They embark without a clear sense of their destination. And once they do decide, they often find themselves lost at sea in the wrong boat with inadequate
Read more

3 Common Investing Mistakes and How To Avoid Them

Information about how investors really make decisions is being researched all the time. However, work in the field of behavioral finance — some of which has won the Nobel Prize in economics — has identified several key ways in which our brains trick us into seeing the investment world one way, when in reality it is something quite different. These cognitive biases include: Anchoring bias. This reflects our tendency to latch our thinking onto a reference point that we are familiar with — even
Read more

What if Rip Van Winkle Invested in the U.S. Stock Market?

Nearly 200 years ago, the American short story “Rip Van Winkle” became an instant classic. The main character, Rip, is a simpleminded soul who lives in a village by the Catskill Mountains. He is an unambitious man who is very good at avoiding two things: work and his wife. One day, while doing what he does best, he wanders into the mountains to go hunting, meets and drinks with a strangely dressed crew, and falls into a deep sleep after
Read more

Quit Monkeying Around

August 2017 In the world of investment management there is an often discussed idea that blindfolded monkeys throwing darts at pages of stock listings can select portfolios that will do just as well, if not better, than both the market and the average portfolio constructed by professional money managers. If this is true, why might it be the case? THE DART BOARD Exhibit 1 shows the components of the Russell 3000 Index (regarded as a good proxy for the US
Read more