General

How to Think about Financial Models

Checking the weather? Guess what—you’re using a model. While models can be useful for gaining insights that can help us make good decisions, they are inherently incomplete simplifications of reality. In investing, factor models have been a frequent topic of discussion. Often marketed as smart beta strategies, these products are based on underlying models with…

Read More

The Importance of Time Horizons in Investing

The following set of charts are great visual aids for showing the benefits of long-term investing in the stock market as well as the shortcomings of short term investing. The charts can help investors plan and set expectations for investing in the stock market. Two terms to understand the charts are below. DFA Domestic Balanced…

Read More

Getting to the Point of a Point

A quick online search for “Dow rallies 500 points” yields a cascade of news stories with similar titles, as does a similar search for “Dow drops 500 points.” These types of headlines may make little sense to some investors, given that a “point” for the Dow and what it means to an individual’s portfolio may…

Read More

Equity Index Put Writing for the Long Run

Equity Index Put Writing For The Long Run One of my all-time favorite investing books is Jeremy Siegel’s Stocks For The Long Run, which is currently in its 5th edition. It’s a true classic that I refer to often.  Professor Siegel lays out the compelling case for equities over extended time horizons such as 20 or…

Read More

Why Should You Diversity?

When international stock returns lag, investors may feel tempted to double down on their home market. Historical data suggests the long-term benefits of diversifying globally. Why Should You Diversify? As 2019 approaches, and with US stocks outperforming non-US stocks in recent years, some investors have again turned their attention towards the role that global diversification…

Read More

ITIN Mortage Investing

Background Currently there are close to twenty million undocumented immigrants in the U.S., according to the U.S. Government Immigration Service.  The average time that it takes an undocumented worker to become a U.S. citizen is seven years.  During this process the undocumented workers must rent a home, rent an apartment or stay with a family…

Read More

Key Questions for Long-Term Investors

Asking the right questions and following a few key principles can improve your odds of long-term investment success. Whether you’ve been investing for decades or are just getting started, at some point on your investment journey you’ll likely ask yourself some of the questions below. Trying to answer these questions may be intimidating, but know…

Read More

Trade Journals & Successful Option Trading

I’ve now been trading options for over a decade and been associated with Steady Options for seven years – hard to believe. Over that period, I’ve learned quite a bit about option trading; how to improve, what not to do, and generally how the option markets work. I’m still learning. Seeing how large blocks of options…

Read More

401(k) Fiduciaries

One of the least understood areas about 401(k) plans relates to the various fiduciary requirements for the plan.  Every 401(k) plan has fiduciaries, as required by ERISA (the law governing retirement plans).   There are different types of fiduciaries involved with 401(k) plans…which leads to common questions:             What exactly are fiduciaries, and what do they…

Read More

Lorintine Capital’s Investment Philosophy

Investopedia defines an investment philosophy as “a set of beliefs and principles that guide an investor’s decision-making process.” In this article I’ll share a few principles that guide our investment philosophy at Lorintine Capital. Before I jump in, some definitions: “Cash”: 1 Month US Treasury Bills “Bonds”: Bloomberg Barclays US Aggregate Bond Index “Market”: Dimensional…

Read More