Surprise! Most Stocks Aren’t Very Good Investments
October 19th, 2017
The stock market is often touted as the best choice for growth-oriented investors, based on its roughly 10% average annual return over the long term*. But that figure masks a surprising discrepancy: the vast majority of stocks don’t deliver anywhere near that type of return. In fact, if you exclude the top performing four percentRead Entire Article…
Paying More Doesn’t Mean You’ll Get More
October 9th, 2017
Beware the money manager who charges high fees and justifies them with a “highly sophisticated” trading strategy. It’s tempting to equate exotic or complex methodologies with a higher degree of sophistication, and therefore submit to massive fees in order to pursue higher returns that “regular joe investors” can’t access. But in fact, there often seemsRead Entire Article…
A Hedge Fund Group Accepted Warren Buffett’s Index Fund Challenge. It Did Not Go Well for Them.
August 31st, 2017
In 2008, Warren Buffett bet the hedge fund industry they could not beat a typical S&P index fund over a decade. One group was brave enough to take on that challenge. After nine years, the results are becoming clear, according to an article on cnbc.com. It’s officially a rout: The portfolio of hedge fund isRead Entire Article…
How to Survive a Bear Attack: Time Can Heal Even the Deepest Market Wounds
August 25th, 2017
Ten years ago, the market began one of the steepest nosedives in its history. From Oct. 9, 2007 to the market bottom in March 2009, the S&P 500 lost 56.4%*. However, as pointed out in a recent article on CNBC’s website even if you had invested on Aug 9, at the top of the bullRead Entire Article…
The Real Cost of Paying More Than You Have To
August 17th, 2017
Last year, investors in the United States paid, on average, the lowest mutual fund fees ever, according to Morningstar. But as a recent article in the New York Times details, investment costs are full of unpleasant surprises, and academic studies have found that many people aren’t taking advantage of better-priced alternatives. “The costs for gettingRead Entire Article…
The Closest Thing to a “Secret Sauce” for Achieving Superior Investment Returns
July 12th, 2017
Investors usually judge an investment by whether it beats the overall stock market’s return. And they’re willing to pay money managers handsomely for the opportunity. How’s that working out for them? According to a recent article on marketwatch.com, not so well. “More than 90% of large-cap funds lag the S&P 500 Index over a 15-yearRead Entire Article…
Is the Stock Market Really as Volatile as You Think?
June 27th, 2017
Investors are used to hearing how the stock market is a roller coaster, which makes it seem like it’s had as many down years as up years. But that’s not really accurate. CNBC recently related a different take on the S&P 500’s annual return performance. And it may surprise investors who think the stock marketRead Entire Article…
A Better Way to Judge “Long Term” Performance
June 23rd, 2017
For investors, it’s natural to look at an investment’s performance over time to gauge how successful it’s been. But how long a time period should they consider? Many investors don’t take into account the complete cycle of a bull and bear market — instead, they rely on standard industry measures like one-, three- and five-yearRead Entire Article…