Model Investing Articles

Regardless of whether you’re a seasoned investor, or someone just getting started, it often helps to review the most basic fundamental principle that underlies all of investing: compounding. If you truly understand the power of compounding, then you recognize that beyond any other force, it is time that exerts the greatest influence on your investment portfolio.

For most investors, the idea of "getting out at the top" is as illusive an idea as winning the lotto, or licking your elbow. The chances of picking that one magical day just seem too low to be probable. But is it really that tough? Or do most investors simply have a poor understanding of how stock market tops develop?

Investing is very much a mental game. It requires an intellectual toughness and fortitude that is not only uncommon, but very difficult to develop. In this article we discuss the mental resilience that investors need to cultivate in order to stomach the fluctuations that come with being a successful investor.

With the Federal Reserve having recently raised interest rates for the fourth time since the financial crisis, we thought it was an opportune time to discuss how changes in interest rates affect you as an investor. In this article we discuss the role of interest rates in an economy, how those interest rates change over time, and how those changes affect the value of different components of your portfolio.

Every year, top Wall Street analysts put their thinking caps on and try to forecast the upcoming year's market return. The result of their analysis usually comes in the form of "price targets" which indicate where major indexes such as the S&P 500 are likely to be at year end. While price targets have little value themselves, what is valuable to investors is having a framework in which to view future returns.