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Wealth Watch Newsletter

The markets are complex.  In today’s data age, it’s easy to find more points of information.  However, it’s harder than ever to find out what parts of that information actually matter to you.  That’s the reason behind Wealth Watch.  At BDF, we want to make sure we are always thinking about what’s relevant and keeping you in the loop.

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Indexing – Not as Easy as It Seems

With practically every area of the market up significantly this year, the appeal of index funds has been growing as well. Investors are attracted to the broad diversification, low cost, and tax efficiency index funds provide, and as a result, flows into index strategies eclipsed $1.6 billion in 2017 and 2018, according to Forbes. In […]

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Market Volatility Returns

Volatility returned with a vengeance this past week, interrupting what has otherwise been an impressive first seven months of the year for global stocks. Worldwide markets have fallen 5% since the beginning of August as investors sold out of equities and moved into the safety of bonds. What is causing this volatility? Will it impact […]

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Mind the Valuation Gap

Growth has continued to outperform value in 2019, continuing what has become a decade long trend. For the year, growth stocks have outperformed value stocks 25.7% to 18.1%*. Going back 10 years, growth has outperformed value 16.5% to 13.2%* on an annualized basis (*as of July 15, 2019 using the Russell 1000 Growth and Russell […]

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Picking Up Pennies

In investments, there’s not much more boring than cash.  Sure, it provides immense comfort when the markets go south, but in the long-term, cash is the piece of your portfolio which is basically set up to fail versus inflation.  By that measure alone, it’s exposure should be limited. Even so, cash still plays a critical […]

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Behaving Badly in Las Vegas

There is arguably no better place in the world to observe bad behavior than on the Las Vegas Strip. After all, “What happens in Vegas, stays in Vegas.” However, when it comes to behaving badly, we investors can give Vegas casino-goers a run for their money. At the 2019 AICPA ENGAGE wealth management conference in […]

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Annoying Averages

Growing up in school, no one wants to be average.  From the start, averages are ingrained into us, and behaviorally, we always want to be better than average in everything we do.  Take this question: Are you an above average driver?  My guess is you’d answer yes.  And I’d venture to say that more than […]

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Chasing Performance – Six Examples to Learn From

Who doesn’t like a story? With investments, a good story almost always accompanies chasing a hot investment. In our view, chasing performance is a dangerous game and extremely difficult to win. When it comes to investing, we believe there are no shortcuts. Higher returns equal higher risk and a greater chance of loss as a […]

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The Pluses and Perils of Private Equity

As investors, there are a plethora of investment options out there and it’s important to keep track of them.  Not to chase investments or a story, but to watch how things change, what data becomes available, and when something that might not have been an investment for you looking backward should become an investment looking […]

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Records Are Meant to Be Broken

It’s spring (even if the recent snowstorm says otherwise) in Chicago. And with spring comes baseball season. Being a baseball fan and a numbers guy, there are two numbers that once had incredible significance in baseball lore – 714 and 2,131. The first was Babe Ruth’s career home run total and the second was Lou […]

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Making Market Calls

In a recent interview, Boeing’s CEO said bad data was partly to blame in the two 737 Max crashes1.  Data is exponentially expanding in today’s day and age, seemingly giving us all the information in the world to make good decisions.  However, it’s causing a new problem – the overabundance of data and the need […]

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The Race to the Bottom

In today’s economy, consumers demand everything be delivered better, faster, and oftentimes cheaper. The asset management industry is no exception. Providers of mutual funds and ETFs have been engaged in a fee war for several years in the “the race to the bottom”. Investors have reaped the benefits throughout this transition. According to Cerulli, an […]

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Active vs Passive, Still a Battle?

A battle has been raging on for the better part of 25 years within the financial community. This battle has come to be known as “Active vs Passive”. For first time readers who may be scratching their head, what exactly is Active and Passive? Let’s dive in deeper: What is Active and Passive? Active Management, […]

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