Investing Archives - Acropolis Investment Management

2 Jun 2025

Gold is Glittering Bright (maybe too bright)

It’s not surprising that clients are inquiring about gold, as it has risen 25.3 percent so far this year. When we started this business in August 2002, I thought gold was a terrible investment idea. However, in the 273 months since then, it has handily beaten foreign stocks and bonds, and even eked out a small win over the S&P 500. That’s right, during this time frame, gold gained 10.9… Read More

By David Ott Tags: Diversification, Economy, Gold, Investing, Markets, Stocks, Volatility, Wall Street

12 May 2025

Graduation & Compounding

Many thanks to Ryan Craft for writing last week’s market summary. I couldn’t write last week at the last minute because my eldest child unexpectedly won an award from the English Department a day before graduation, and we had to change our travel plans. Graduation was so exciting – I couldn’t have been more proud. I’d been hoping for that day since before she was born, and within a month… Read More

By David Ott Tags: 529 Plan, Compounding, Investing, Missouri MOST 529

21 Apr 2025

The Trouble with Timing

When the stock market sold -10.7 percent in the three days following Liberation Day, a handful of clients called and asked, ‘Hold the course, right?’ They knew what I would say, and they all held on, and I was relieved. When President Trump paused his tariff plan the following week, the S&P 500 rose 9.5 percent. That wasn’t enough to offset the loss, but it went a long way. One… Read More

By David Ott Tags: Economy, Investing, Market Timing, Markets, Stocks, Volatility, Wall Street

7 Apr 2025

Buckle Down and Buckle Up

When we meet with clients to create or review a financial plan, there’s a section where we try to get a sense of risk tolerance. We’ll show an asset allocation and its long-term expected return, and then, in big red numbers, what this portfolio would have lost in the 2008 financial crisis. We show it in percentage and dollar terms, based on the portfolio size at that time. The idea… Read More

By David Ott Tags: Diversification, Economy, Investing, Markets, Stocks, Tariffs, Volatility, Wall Street

31 Mar 2025

ETF Hotsauce

I listen to a lot of investment podcasts, and one of the ones I enjoy the most is Trillions, produced by Bloomberg. It stars two journalists, Joel Weber and Eric Balchunas (pronounced bal-chew-ness, as best I can tell), and a few other rotating cast members. I enjoy listening because the hosts are Generation Xers (like myself), who are funny and down to earth. They feel like friends who talk in… Read More

By David Ott Tags: Alternative Investments, Diversification, ETFs, Investing, Markets, Portfolio Strategy, Volatility, Wall Street

17 Mar 2025

Sentiment Shifting

As noted above, the University of Michigan Consumer Sentiment index received much attention last week. The index is a monthly survey of at least 500 US households, who are asked about their current financial situation, economic expectations, and attitudes toward purchasing major household items. The consensus estimate for February was a reading of 63, which would have been a little lower than the January reading of 64.7. When the actual… Read More

By David Ott Tags: Diversification, Economy, Investing, Markets, Sentiment, Volatility, Wall Street

17 Feb 2025

The Hedge Fund Alternative, Part 1

Last September, I wrote that I would write about the four big categories of alternative investments, as defined by the CFA Institute: Hedge funds Commodities and Natural Resources Real Estate and Infrastructure Private Equity and Private Credit Well, five months have passed, and I forgot all about it, but two articles I read recently reminded me. In January, the Wall Street Journal reported on a new study that showed that… Read More

By David Ott Tags: Hedge Funds, Investing, Markets, Portfolio Strategy, Wall Street

3 Feb 2025

The Roaring 20s

A few weeks ago, someone told me we’re halfway through the 2020s. I was caught off guard, but they were right. They went on to say that this 1920s is looking even better than the last round 100 years ago, so naturally, I went to the data. The chart below shows the growth of $1 invested in large-cap stocks 100 years ago (in green) and this century (in yellow). Somewhat… Read More

By David Ott Tags: Economy, Investing, Stocks, Wall Street

21 Jan 2025

The Cutting Room Floor (Part 1)

Next Monday night, January 27th, Acropolis will hold our 7th Annual Investor Social. Although we are near capacity, there are some spots, so if you can make it, please call to make a reservation. This week and next, I will include some slides that didn’t make it into the final presentation to keep the event moving but were too good to throw away. I’ve often written here that stocks are… Read More

By David Ott Tags: Investing, Large Cap Stocks, Markets, Small Cap / Size Factor, Stocks, Wall Street

13 Jan 2025

Breaking Down Bonds

We’re only 10 days into the new year, and markets of all stripes are off to a rocky start. I think people intuitively understand that stocks are volatile, and after two years of 20+ percent gains for the S&P 500, a small “give-back” isn’t so hard. Bonds are another story. Most people quickly admit that they don’t understand them very well but know they are supposed to be the “safe”… Read More

By David Ott Tags: Bonds, Diversification, Federal Reserve, Interest Rates, Investing, Markets, Portfolio Strategy, Wall Street

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