The Hedge Clause

Full disclosure and transparency should be expected of all securities analysts, financial journalists, and bloggers. While the principle of ‘caveat emptor’ – buyer beware – is an important part of all commerce, there is equally an ethical responsibility for anyone trying to sell you something to disclose their interests. In that spirit, this page is offered.

I am a firm proponent of buy and hold strategies that focus on life stage appropriate fund allocation and personal risk tolerance. What this means for me is a retirement portfolio weighted almost entirely to global equity index funds. I’m invested for the long term, and I don’t look at my returns regularly. The broader the index the better, for me. You have to be in a market to catch its rise, and that is how equities outperform other asset classes. I will rebalance when I hit a later life stage, which should be five to ten years away. In the meantime, in the words of Peter Pan, “straight on til morning.”

What does this mean to you? Why should you care what I own?

I am a blogger, not a financial adviser. I’m not trying to sell you anything. If I write about a stock, or any other particular asset, I don’t own it. Someone might complain that I don’t have skin in the game, that my money is not where my mouth is. I would prefer to think of it as independence – a legacy of working for audit firms. The opposite stance (you have to own it to have a right to talk about it) is hard to generalise to other aspects of opinion and advice. Do I have to live in Italy to share an opinion about the Italian economy? Nor do I believe that my opinions will move the market significantly, so significantly that I can front run.

My opinions are my own. I have worked for a variety of great firms during my career, and learned a tremendous amount during my tenure at each of them. But I speak only for myself, not for an employer of the moment or anyone else.

I value your comments on my blog. These comments remain your intellectual property, and your responsibility. I reserve the right to moderate comments, but will not do so based on preferences expressed positively or negatively for any particular security, market, etc.

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