Featured entries from our Journal

Details Are Part of Our Difference

Embracing the Evidence at Anheuser-Busch – Mid 1980s

529 Best Practices

David Booth on How to Choose an Advisor

The One Minute Audio Clip You Need to Hear

De-Taxing Your Tax Season

At Hill Investment Group, we’re big on bringing simplicity to our clients’ financial lives, transitioning their investment world from messy to meaningful.

One way we turn our talk into action is by closely coordinating our efforts with our clients’ other specialized providers. This time of year, that’s often their CPA, as tax season goes into full swing. We pitch in by gathering all the tax documents released for all of the accounts we manage for each client – all those Form 1099s, for example – and sending them in a handy bundle to our clients’ CPA or similar tax professional.

This allows our clients to focus on what is important to them, instead of having to scramble around, hunting down the latest tax documents on their own.

Simply put, we love being a team player by pitching in on behalf of our clients.

Welcome, Sally Ackerman

We kick off our 2017 communications with you by celebrating a new addition! We are thrilled to join Katie and her husband Doug in welcoming their newborn Sally Marie Ackerman to the world. Sally arrived at 5:52 pm on January 10 (just in time for supper), weighing in with all of her 8 pounds, 3 ounces. All reports suggest that Sally is healthy, a fantastic eater, and a perfect sleeper during the day. Nighttime sleeping is something she’s working on in the first quarter of 2017.

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What Did We Re-Learn in 2016?

Even though we at Hill Investment Group do our best to always Take the Long View, I have a confession to make: When it comes to investment performance, I still have days and even years that I like more than others. 2016 is one of them.

It’s not just because the annual performance numbers across many of our global markets were remarkably strong. That’s nice, but I’m more interested in the tale these numbers tell us – or, actually, re-tell us – about investing in good times and bad.

Asset allocation (still) makes sense.

After a few years of underdog performance that tested many investors’ discipline, small-cap and value stocks proved their mettle this year, globally and especially in the U.S. As Dimensional Fund Advisors observed in its recently released 2016 Market Review (emphasis ours): “Over 2016, the US small cap premium marked the seventh highest annual return difference since 1979 when measured by the Russell 2000 Index minus Russell 1000 Index.”

Market-timing (still) does NOT make sense.

2016 also was a text-book example of how investors who may have been tempted to try to capture the market’s crests and avoid its chasms would likely have missed out on the year’s ultimately rewarding returns. To share Wes Wellington’s comments from his “Look Back at 2016“:

“Every year brings its share of surprises. But how many of us could have imagined that 2016 would see the Chicago Cubs win the World Series, Bob Dylan receive the Nobel Prize in Literature, Donald Trump elected president, and the Dow Jones Industrial Average close out the year a whisker away from 20,000? The answer is very few—a lesson that investors would be wise to remember.”

Dimensional’s report further notes (emphasis ours): “Most of the performance for small caps came in the last two months of the year, after the US election on November 8.” This represents another outcome that would have been difficult if not impossible to predict without a great deal of luck on your side.

Diversification remains your best bet.

Almost two years ago to the day, following a year in which U.S. large-cap stocks had continued to outperform most other asset classes, I posted this reminder about the importance of remaining diversified: “Clearly, the tables can turn abruptly and destructively for the nondiversified investor.”

With small-cap and value stocks’ strong resurgence, 2016 reemphasized this same lesson in a fresh way. It tells us that diversification remains as important as ever in a world in which near-term prognostications remain a matter of luck, not skill.

As Oaktree Capital’s Howard Marks expressed in his “opinion of opinions” in a recent post:

“There are no facts about the future, just opinions. Anyone who asserts with conviction what he thinks will happen in the macro future is overstating his foresight, whether out of ignorance, hubris or dishonesty.”

What does 2017 have in store for us as investors? In all honesty, I don’t have the hubris to guess.

Featured entries from our Journal

Details Are Part of Our Difference

Embracing the Evidence at Anheuser-Busch – Mid 1980s

529 Best Practices

David Booth on How to Choose an Advisor

The One Minute Audio Clip You Need to Hear

Hill Investment Group