In this episode, Mark talks about SMAsand taking control and influencing how your money is managed. Returns are a result of the right process and having your investments diversified in an appropriate manor the volatility will become less of an issue. He also talks about DirectTV and an AAII article about high frequency traders, concerns about ownership in mutual funds, emotional behavior impacting investors. Finally, he talks about SMA vs Mutual Fund. An SMA are a dedicated investment account, the investor owns individual securities, that are highly tax efficient and flexible. Mutual funds are personally managed investments that pools money from many investors to purchase securities and you do not own them directly. The biggest mistake investors make is looking back at performance and thinking it will reoccur in the future - don’t pay attention to the past! The second biggest mistake: considering returns in nominal dollars.

March 20, 2017