Document Type: Market Commentary

Morningstar publishes an annual “Mind the Gap” study. The study analyzes the difference between investor returns and fund returns. Investors tend to buy and sell funds at the wrong times, often buying when past performance is strong and selling when past performance is weak. For the 10-year trailing period ending 12/31/2021, the average investor underperformed the stated return of mutual funds by 1.7% annually, which was about one-sixth of the total return available.

“AI is a triad of computing power, algorithms, and data.” according to author Ben Buchanan of Georgetown. Among the three, we want to talk about semiconductors, specifically high-end logic chips, where unimaginable growth in computing power is not only bringing AI to life, but also conflict.

Hedging a portfolio against bear markets is a parlay of sorts in that the investor needs to make a minimum of two correct and difficult forecasts to be successful.