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Dr.
Dave
Dave
reached the end of a 13 year journey last week when
he officially completed his doctorate in business.
His dissertation, titled "Finding the
Planning in Financial Planning: An Integrative Framework for
Strategy Making by Financial Planners," proposed
and then empirically tested a new framework for thinking about
how planners plan. The dissertation has already drawn
interest from others in the academic world, with Zvi Bodie, a
well-known economist at Boston
University, proposing new research to further test
some of the implications of Dave's
model.
Wall
Street Journal
VOICES:
David Yeske, on the Science of Financial
Advising
Dave
was featured in the VOICES section of the Wall Street
Journal's online edition recently. He had the
opportunity to talk about Yeske Buie's science-based approach
to financial planning and investments.
New
Webinar Planned!
Yeske
Buie, in conjunction with the Delta Group (Elissa and Dave's
study group) will be hosting a presentation by Liz Ann
Sonders, the chief investment strategist at Charles Schwab
& Co. The webinar will be held on April 6th at 4:00
PM Pacific Time, 7:00 PM Eastern Time. You'll receive your
official invitation in a few weeks. |
Milestone
Figures Grab Attention, but Their Impact is
Hazy
This
article has an interesting chart showing the first time the
Dow crossed the 10,000 mark in 1999 and the most recent point,
in October of last year. Two representative quotes are
offered from those two time periods:
1999
"It is a
testament to the market's strength and the underlying strength
of the economy." - Robert Murphy, chief executive
of Robb Peck McCooey
2009
"People
don't believe it, they don't trust it, they are nervous, they
are anxious." - Andy Brooks, head of stock trading
at T. Row Price.
It's
worth noting that 10,000 doesn't have the same meaning in 1999
and 2009. First of all, on an inflation-adjusted basis,
10,000 represents a lower level today than it did ten years
ago. Also, and even more significantly, the Dow was a
lot more expensive in 1999 than it is now. As measured by
the price-to-earnings ratio, in fact, the Dow was TWICE as
expensive in 1999 as it is today. So, all other things
being equal (and not even thinking about making a prediction
here) there has to be more upside and less downside than the
last time the Dow crossed this psychological
threshold.
FINALLY,
notwithstanding talk of a "lost decade," the fact that the Dow
was at 10,000 in 1999 and again in 2009 doesn't mean you
didn't make any money over that time. Even if you held
nothing but the Dow Industrials, you collected dividends over
that entire period. And the theoretical average annual rate of
return to the Yeske Buie 80/20 portfolio (80% stocks and 20%
bonds) over that period was 5.90% (source: Morningstar
Principia). |