“The Fool in the Shower” – Milton Friedman, Nobel Laureate ECONOMY: RECESSION PROBABILITIES RECEDING, BUT NOT ZERO Imagine yourself taking a shower. The water is too cold thus, you turn on the hot water. After a few seconds (and a few shivers), the water is still cold. Irritated and chilled to the bone, you boost … Read more
“We really can’t forecast all that well, and yet we pretend that we can, but we really can’t.” – Alan Greenspan, ex-chairman of the Federal Reserve ECONOMY: The illusion of control versus the wisdom of crowds. Overconfidence, or the illusion of control, is one of the many pitfalls in behavioural finance that describes the tendency … Read more
When building an equity portfolio, sooner or later a fundamental question arises: how much weight should be given to each individual position in the portfolio? This question is by no means trivial, as the weighting influences not only the risk structure of a portfolio, but also its rebalancing logic, performance and robustness across different market … Read more
View this email in your browser European countries are taking steps to reopen the economy and social life. However, at the same time there are still new cases reported in China. CNN’s “Fear & Greed Index” clearly reflects the concerns of a second wave. The historic data from the Spanish flu is enhancing concerns and … Read more
In the dynamic world of finance, understanding the ‘Investor vs. Entrepreneur’ dichotomy is crucial for anyone looking to make their mark in investments. There are fundamental differences in the way investors and entrepreneurs think about the world of investment. This exploration into the entrepreneurial mindset will not only reveal these distinct approaches but also equip … Read more
The US Embassy in Switzerland estimates that around 20,000 Americans live in Switzerland, proving it is an attractive expatriate destination. For US expats, overseas investments and tax obligations may appear daunting. The United States is unique in taxing individuals on their worldwide income, no matter where they live. Strategic wealth planning is thus critical for … Read more
COVID-19 was a shock and brought the world to a halt. Newspapers are still focused on the 8.1 million people infected by the virus. However, there are also about 4.5 million people that have recovered. Thinking about the remaining 3.1 million who still are infected, data shows that the symptoms are mild in over 90% … Read more
When you invest, are you leaving your wealth to chance? Let’s take a closer look at investing, gambling and speculation to understand the fundamental differences between the three. And the common thread that ties them together. To an outsider, the stock market may look a lot like gambling. In fact, that view may be the … Read more
The financial markets in Switzerland are stable, innovative in outlook, and benefit from an efficient governing system. We at LFA have extensive experience in Swiss wealth management, providing diversification options in Switzerland to American investors. This article provides an outlook on the potential rewards and risks of investing in stocks in Switzerland to guide your … Read more
We continue to see a lot of uncertainty around the world. Last Tuesday Russia announced that they have a vaccination to treat coronavirus. However, many countries scrutinize the effectiveness and safety of the vaccination. The main criticism is the fact that the testing period started less than two months ago. We expect that it will … Read more