Category Archives for "Critical Thinking Skills"

Making Investment Decisions: Are You Kirk or Spock?

When it comes to making investment decisions, our natural decision-making style carries enormous weight. We are, after all, talking about our life savings. The stakes are high – right up there with decisions we make about our health, our children’s welfare, and our careers. If you are in your 20’s or 30’s, you may think […]

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Critical Thinking Skill #4 – Emotional Intelligence

What Mike Tyson can teach us about Emotional Intelligence When I talk about emotional intelligence with clients, they often think of it as having emotional control over their investing behavior. This is true, but it’s just one aspect of this critical thinking skill. Emotional intelligence is a broader concept. I’ll try to explain it with […]

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Can A Sector Rotation Strategy Beat The Market?

sector rotation 3 wk

We look at how sectors move, relative to the market and to each other. The return behavior of sectors over time offers investors valuable information. This relative return behavior gives us clues about shifting market leadership. How you allocate equity exposure among sectors is a key driver of portfolio performance.  Introduction A popular approach among […]

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The Greater Fool Theory

dilbert

One of my favorite TV shows in recent years is HBO’s The Newsroom. The guy who writes the show, Aaron Sorkin, is known for fast-paced, snappy dialog. In the final episode of season 1, economics reporter Sloan Sabbith (played by the lovely and talented Olivia Munn) tells her boss, anchorman Will McAvoy (played by Jeff Daniels): […]

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Critical Thinking Skill #3 – The Time Value of Money

time value money

The Time Value of Money is one of the first skills a new investor must learn. Simply put, it answers the question “What is the value to me today, of a dollar that I expect to receive at some point in the future?” This article will walk you through the process of answering that question. […]

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