Did you know that in 2010 and 2011 three iconic American companies–Eastman Kodak, Radio Shack, and The New York Times–were removed from the S&P 500 Index. Eastman Kodak was replaced by a cloud computing firm and The New York Times was replaced by Netflix.
But according to a new Spectrum study, the business model is still new to most investors. When asked to rate their familiarity with various investment terms on a scale of 0 to 100, where 0 is not at all familiar and 100 is very familiar, wealthy investors rated their knowledge of the term “robo-advisor” at just 15.47.
What’s the goal of investing? Many investors will simply answer, “Returns.” Or, more specifically, “Better returns.” But how do you measure returns? The answer is not as straightforward as you might think. What’s the benchmark? The S&P 500? What if your portfolio is nothing like the S&P 500? What if you have a substantial allocation to bonds?
The international markets lagged the US market by a significant margin in 2014. In fact, they have lagged in recent years.
Daniel Kahneman, the father of behavioral economics and the winner of the 2002 Nobel Prize in economics, recently addressed hundreds of financial professionals at the IMCA 2015 New York Consultants conference in Manhattan.