Small caps are part of the market portfolio and provide important diversification benefits to portfolios of large cap stocks. Small caps are an important component of the total market—investors need a reason to exclude them, not a reason to include them. They tend to behave differently from large caps, thus providing important diversification benefits to portfolios of large cap stocks. Without these diversification benefits, returns of the equity market may not be captured in the most effective way. Read our…

After a period of relative calm in the markets, in recent days the increase in volatility in the stock market has resulted in renewed anxiety for many investors. From February 1-5, the US market (as measured by the Russell 3000 Index) fell almost 6%, resulting in many investors wondering what the future holds and if they should make changes to their portfolios. While it may be difficult to remain calm during a substantial market decline, it is important to remember…

At the beginning of 2017, a common view among money managers and analysts was that the financial markets would not repeat their strong returns from 2016. Many cited the uncertain global economy, political turmoil in the U.S., implementation of Brexit, conflicts in the Middle East, North Korea’s weapons buildup, and other factors. The global equity markets defied their predictions, with major equity indices in the U.S., developed ex-U.S. and emerging markets posting strong returns for the year. Read our 2017…

After all that, U.S.-stock funds are ahead for the year so far. It has been a bumpy ride, from China to oil to the most-recent bump, Brexit. But U.S. stocks, and funds, keep recovering, clinging to modest gains. The average diversified U.S.-stock mutual fund was up 1.8% for the second quarter, and 1.5% for the year so far, according to data from Thomson Reuters. Corp.’s Lipper unit… Read our Second Quarter Newsletter for 2016.

Everyone likes the top 10 lists, made popular by David Letterman, and this one from DFA we like as a great overall look at what it takes to have a successful investment experience. We’ll make some practical comments on each: 1—With nearly 100 million trades daily, stocks are priced efficiently and the likelihood that a manager is giving any “secret research” for 1% extra is highly unlikely. We also hear “why is everyone buying Apple stock.” It’s just not the…

Looking at broad market indices, the US equity market again outperformed both developed ex US and emerging markets during the quarter. In a repeat from the third quarter, US REITs recorded the highest returns, outperforming equity markets. The value effect was negative in the US, developed ex US and emerging markets. Small caps outperformed large caps in both developed ex US and emerging markets but underperformed in the US… Read our Forth Quarter Newsletter for 2015.

We welcome you to stop in and visit or schedule a meeting. Lyke Financial recently moved into our new office building located at 4017 Whipple Avenue, N.W. in Canton, Ohio. Looking at broad market indices, the U.S. equity market outperformed both developed U.S. and emerging markets during the third quarter. U.S. REIT’s recorded the highest returns, outperforming equity markets… Read our Third Quarter Newsletter for 2015.

Looking at broad market indices, emerging markets outperformed both the U.S. and developed ex U.S. markets in U.S. dollars during the quarter. REITs recorded the lowest performance in developed markets, including the U.S. The value effect was positive in emerging markets but negative in developed markets, including the U.S. small caps which outperformed large caps in the U.S., non-U.S. developed markets, and emerging markets. The U.S. equity market recorded slightly positive performance for the quarter… Read our Second Quarter Newsletter…

Psychology can be pretty weird sometimes. Mostly, the weird stuff really comes out when stressful times are upon us. Think 2000—2002 or 2008 or financial stress. If one were to revisit the financial headlines we would find them pretty funny if not stupid—with the benefit of hindsight. Negative news, constantly repeating, has a compounding effect that causes investors to panic and do exactly the wrong thing at exactly the wrong time. Back in the early 70’s, I can remember Walter…

If you’ve been paying attention to market statistics for calendar year 2014, you’re aware that domestic stocks have had a banner year. The U.S. S&P 500 Index enjoyed an annual return of more than 13% and if you’re looking at account statements, you’re also seeing that the major non-U.S. (international) indexes, such as the MSCI EAFE Index and the MSCI Emerging Markets Indexes, actually ended with negative returns for the same period… Read our Forth Quarter Newsletter for 2014.