Most investors have a natural and healthy aversion to risk. It’s what keeps them from betting the ranch on things like Bitcoins or multilevel marketing schemes. But too much aversion to risk can be as bad – or even worse – than not enough. According to the latest figures from the Federal Reserve, the average […]
There aren’t many things in life that are certain, but stock market corrections are as certain as it gets. The only question is, from what level will the correction begin? This is always the tricky part of forecasting, and anyone who tells you that they can predict when the next market correction will start is […]
If you’re perfectly capable of managing your own retirement portfolios, selecting the right mix of low-cost investments, rebalancing at the right time and not buying and selling out of fear or greed, then good for you. But the majority of people are not like that. They may be smart enough to do the right thing, […]
There’s no doubt that you “can” succeed without help, but the more relevant question is… should you even attempt it? This article from InvestmentNews reveals some interesting considerations for those contemplating the DIY path. Robo-advisors are multiplying. Does that mean human advisors are obsolete? Should you fire your adviser and go it alone? This article […]
Chart of the S&P 500 index, showing the weekly closing prices, going back one year.
Chart of the volatility of the stock market, as measured by the VIX index. VIX is often called the “fear guage” for stock market investors, because it tends to spike higher when there is bad news about the economy, or geopolitical events, or anything of significance that may cause stock markets to fall.
Long-term chart of the S&P 500 index. Monthly closing prices going back 10 years. Although this index is trading at an all-time high, when you adjust for inflation the market still has a lot of ground to make up.
Chart of the PowerShares DB Commodity Index Tracking Fund (ETF). This fund provides exposure to 14 commodities from four sectors: energy, agriculture, industrial metals, and precious metals. Many commodity funds weigh constituents by economic importance, resulting in a heavy energy overweighting, but DBC is well-diversified across commodity sectors, making it a true broad-basket commodity fund.
There are about 95 million amateur investors out there, and they’re all trying to “beat the market.” I don’t use “amateur” in a pejorative sense. I’m talking about regular, non-professional investors. Your coworker who brags about his stock picking prowess is a prime example. A smart guy. Works hard. Does his research. Has an […]
People make a lot of dumb investing mistakes. And they should not expect financial advisers to correct them. That is one finding from two studies that used actors posing as middle- and upper-middle-class Americans looking for financial advice. Their experiences should set off alarm bells for investors and the compliance officers who monitor adviser behavior. […]