Tag Archives: SEC

The Fight for a Fiduciary Standard

Wealthfront was founded on a simple vision: that every investor, large and small, deserves sophisticated financial advice. And contrary to a large majority of the industry, we always put our clients first. A teacher making $50,000 a year deserves the same high-quality investment service as an institution managing $500 million. It’s why I signed up as a Wealthfront client when it launched, why I joined the company two years ago, and what inspires me and my colleagues to come to work each day. If you come visit our offices in Palo Alto, you’ll see a giant chalk wall in the back of the office reminding us of this. All the ideas center around one thing: doing the best possible thing […]

What To Do When Your Stock Lockup Ends

Effect of Post-IPO Lockup on Tech Stock Price

A flood tide of shares is hitting the market in May and June, as a number of the high-profile tech IPOs from the fall emerge from lockup periods, including Jive Software (JIVE), Zynga (ZNGA) and Angie’s List (ANGI). If you’re one of the employees of the 28 companies whose lockups are expiring in May or June, you’re wondering how to diversify your portfolio and when to sell. Here’s our research on the question of what to do in the days immediately following the lockup expiration, presented visually to help you see the dip that typically follows the end of the lockup.* You’ll also notice that it shows the big difference between top-performing and bottom-performing stocks, as well as the average. […]

Signs Of Life In The Markets…or Life Support?

This week started out on a wave of relief after the market’s gains. As Monday rolled in, we sensed European politicians might be coming up with a plan to save the continent, and a few people were even floating on the idea that stocks could lead a real recovery. Realism and the economic doldrums settled back in toward the end of the week. All of the prognosticators on record seemed to be scratching their heads. “It’s disconcerting the fact that the market had three attempts these past four to five trading days, and none of the times it could prove itself that it had the vigor to move higher,” Tom DeMark, an adviser to SAC Capital Advisors Inc.’s Steven A. […]

Friday Reads: Famed Behavioral Economist Dan Ariely Takes A Swipe At Advisors

Author and behavioral economist Dan Ariely says investment advisors ask the wrong questions and generally aren’t worth the high fees that they charge. The two questions that advisors ask, he says, are: How much of your current salary will you need in retirement? and What is your risk attitude on a seven-point scale? “From my perspective, these are remarkably useless questions,” he writes. “An advisor will optimize your portfolio based on the answers to these two questions. For this service, the advisor typically will take one percent of assets under management – and he will get this every year!” Ariely continues. “Not to be offensive, but I think that a simple algorithm can do this, and probably with fewer errors. Moving money […]