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Ron Ross

Ron is a Certified Financial Planner™, holds a Ph.D. in economics, and taught at California’s Humboldt State University for a decade. He has authored financial advice columns, as well as the acclaimed financial text, The Unbeatable Market.
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Recent Posts

Do Some Investment Professionals have Gambling Problems?

By Ron Ross | September 24, 2018

We often speak with clients who have the sneaking suspicion that their previous investment firm was essentially gambling with their money. The unfortunate truth is that many investment professionals might as well be called what they really are – sports bookies. 

Though these two lines of work may seem quite different on the outside, you might just be surprised at the similarities – and at how the “beat the market” strategy endorsed by so many investment professionals is simply gambling in disguise. Here's Part One of a two-part series on the similarities between

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Are Your Financial Strategies Working? How to Evaluate Performance

By Ron Ross | September 18, 2018

When prospective clients meet with us to evaluate their portfolio, many investors are unaware if their portfolio is experiencing sub-par performance relevent to the appropriate benchmarks. Here’s what to look for when you’re evaluating your investments’ performance.

Ignorance is bliss. When it comes to investment performance, there’s a ring of truth to this old adage. It’s not difficult to see how active managers – investment professionals who attempt to “beat the market” in search of greater returns – can

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The Rational Investor - Why Diversification is a Means and Not an End

By Ron Ross | August 07, 2018

Clients often ask us for investment guidance about diversification – why is it so essential? How is it achieved? We are always glad when our clients bring up this important topic.  

It is so important - in fact, we’ve blogged about it before - because diversification is not only the cardinal rule of investing, but also the one rule most often violated.

Perhaps Shakespeare said it best in The Merchant of Venice:

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Why Many Investment Professionals and Active Managers Fall Short

By Ron Ross | July 19, 2017

Our clients often ask us about market efficiency, or the idea that current market conditions already reflect all available information. These questions aren’t exactly a surprise, given that the debate over market efficiency -- and its kissing cousin, the debate over active vs. passive investing approaches -- has been raging in the financial world for decades.

But while the market efficiency question may never be settled to everyone’s satisfaction, one thing is crystal clear: As evidenced by aggregated historical returns,

 

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Whose Side is Your Investment Professional Really On? How to Find Out

By Ron Ross | July 13, 2017

All too often, we hear from investors who feel disappointed, disgruntled or even downright furious about the treatment they’ve experienced at the hands of inept, inexperienced or unethical investment professionals. Unfortunately, this story is pretty common.

However, as we tell clients, you don’t have to take it anymore. Here are three alternatives to settling for sub-par financial strategies.

Choose Strategic Wealth Management Solutions Grounded in Reality

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Why Do Investment Professionals Keep Trying to Beat the Market?

By Ron Ross | July 07, 2017

We often speak with clients who have questions about beating the market; can it be done? Should they be worried if their wealth advisor doesn't try? Why doesn’t our investment firm include beating the market on our list of viable wealth management strategies?

Despite what you see on TV and read online, overwhelming evidence shows that over any significant period of time - trying to beat the market doesn’t work.

Here’s why it’s not effective

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Why Your Wealth Management Strategies Shouldn't Include Gambling

By Ron Ross | May 26, 2017

Clients often come to us with questions about beating the market: Can it be done? Should they try? What are the odds of success?

The urge is certainly understandable – after all, some of the best-selling investing books in recent years include titles like One Up on Wall Street, Beating the Street, Laughing at Wall Street, and Beating the Market 3 Months at a Time.

Then there’s the fact that the financial media loves to improve its ratings by promoting investment guidance consisting

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Successful Wealth Advisors Embrace Risk: Should You?

By Ron Ross | May 14, 2017

Clients often come to us with questions about risk; how much is too much? What’s the right amount for my portfolio? Is it better to err toward the conservative or the risky?

It’s not hard to understand why these questions come up – after all, without risk, there could be no reward. The key lies in finding that “sweet spot,” or the balance between aggressive and conservative investing strategies. 

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Your Financial Strategies and Market Trends: Bull vs Bear?

By Ron Ross | April 26, 2017

Clients often come to us with questions about market trends -- will the bear market dominate or will the bull market prevail? Given the volatile market conditions of the past few years, these concerns are easy to understand.

We're happy to inform our clients that market history offers good news: Bull market cycles last longer than bear market cycles. But that's not all -- bull markets also produce cumulative gains that more than offset bear market losses. Here's the lowdown.

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Can Investment Professionals Pick the Best Stocks Year After Year?

By Ron Ross | February 15, 2016

Clients often ask our wealth advisors for stock recommendations, and we have a simple answer to that seemingly complicated question: We don't engage in stock picking.

We understand why clients wonder about this approach, given its popularity in the financial media, but we don't believe that stock picking and attempts to "beat the market" represent effective investment guidance.

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