Options – Risky or Risk Reducing?

Options are probably one of the most misunderstood financial products in existence.  Popular press and news have highlighted rogue traders losing billions on market bets.  While options can be used to speculate on market direction and if managed improperly, can produce large losses, their original intent is to lower or hedge risk.
There are three basis [...]

Risk – A Double-Edged Sword

In the current volatile market environment, emotions can sometimes get the best of investors and cause them to abandon their long-term investment plans.  I want to discuss the concept of risk, and what it means to you and your investment portfolio.
Let’s define risk, so that we understand what we’re talking about.  Most people would describe [...]

Market Commentary – May 20th

As most of you are probably aware, over the last month or so the markets have been making large moves both upwards and downwards.  In fact the level of these moves as measured by the VIX, which measures volatility in the S&P 500, is at a level not seen since April 2009.  What this means [...]

The VIX Explained

If you’ve watched the craziness of the market the past few weeks, you’ve heard a lot of talk about the VIX index.  I want to explain exactly what the VIX is and how it affects your portfolio.
To understand what the VIX is, we first must have a primer on options.  An option is a simply [...]

What Does it Mean to Be a Fiduciary?

In our opinion, a fiduciary relationship between adviser and client is essential. If you have an account at a large brokerage firm, ask your adviser if he acts in a fiduciary capacity. If the broker/adviser holds a series 7 license, the answer is no. By having a fiduciary relationship with the adviser, the client is assured that all conflicts of interest are disclosed.