Read Doug’s articles originally printed in The Jerusalem Post.
Profile Perspectives
Proper financial planning can change your relationship with money.
Should I Invest Through My Israeli Bank or U.S. Brokerage Firm?
If you are an American oleh, people may encourage you to open an investment account through an Israeli bank. But if you try to do so, as an American citizen, you will need to sign some very specific documentation.
Is the alphabet soup a deterrent: FATCA, FBAR, PFIC?
As a result of FATCA (Foreign Account Tax Compliance Act),… Read more
Why Getting an Inheritance Doesn’t Always Make You Rich
“If you spend that amount of money from the inheritance you just received,” I told a client a few years ago, “it’s going to vanish over time.” Guess what? It did. This client spent hundreds of thousands of dollars and had nothing to show for it, other than feelings of regret…. Read more
Why You Shouldn’t Worry about Market Volatility
High volatility is a headline grabber. The media seldom writes about a ho-hum day in the markets. Skewed headlines create fear in investors who have an exaggerated view of market instability.
Volatility is a measure of how much a stock price fluctuates.
High volatility stocks have wider fluctuations in prices, providing higher potential returns but also higher possibilities of losses…. Read more
Is It Easier to Make Money or Lose Money?
Recently, I found myself in the Financial Professional’s Twilight Zone when a client assured me, “It’s OK if I lose money. My investments are for the long term and the market always goes back up eventually.” Why was this client so carefree?
Some investors think that if they lose money on an investment,… Read more
Should You Engage in Copycat Trading?
“Copycat trading” is when a regular trader copies the trades of more experienced and successful traders. It sounds simple enough: copying someone else’s trades makes trading easier for you as it eliminates the need for you to do your own research. If you want to trade foreign exchange, for example, just follow the top performing foreign exchange trader;… Read more
Should I be Concerned about a Crash in the Global Economy?
Is the global economy on the verge of another collapse? Thirty years ago, if you were a stock market investor in the United States, your main concern would probably have been the overall health of the U.S. economy. There was simply no reason for most investors to pay attention to the economic wellbeing of other countries…. Read more
Gambling vs. Investing: Where Are You More Likely to Win?
Can you make more money gambling in a casino or investing in the stock market?
Both investors and gamblers make decisions on where to place their money based on the likelihood of certain events happening. The probability of high gambling returns is low. In fact, the slot machine is the ultimate game of chance as its returns are random…. Read more
The Critical Questions Successful Investors Ask Their Financial Advisor
When potential clients come in for an introductory meeting, I find that they frequently ask me the wrong questions. While my background and my firm’s corporate culture (“servicing our clients” is our priority) are important topics, details like specific investments and historical rates of return shouldn’t be the focus of the initial meeting…. Read more
3 Things to Know to Sound Smart When Buying Bonds
“Are bonds safe?” asked a fellow in a café who recognized me from the Friday paper. He then looked down and lamented having to pay NIS 22 instead of NIS 14 for his coffee. “Inflation,” I commented. Then he asked for advice about bonds: “If the central bank raises interest rates to control inflation (rising prices),… Read more
Do Market Timers Generate High Returns?
Can market timers outperform the market?
One of the most watched bets in investment history just wound down. Ten years ago, billionaire stock investor Warren Buffett wagered that the S&P 500 Index would outperform five hedge funds over the next decade. The bet was a classic “passive investing” vs. “active investing” showdown…. Read more