You can successfully invest in these uncertain times—and you won’t have to chase the next new IPO or buy into the latest advice on CNBC.
Here are the top five things every investor should know. Continue reading
Brett Arends recently wrote a piece for MarketWatch in which he expressed the opinion that hedge funds are a sucker’s bet. He bases his argument on a fascinating study called Higher Risk, Lower Returns: What Hedge Fund Investors Really Earn that was published in 2009. The authors of the study, professors from Emory University and Harvard, came to the conclusion that hedge fund investors would have (on average) been better off buying an S&P500 Index fund. So, if hedge funds have performed as badly as this academic study suggests, why have assets invested in hedge funds skyrocketed over the past 20 years? Continue reading
Ron Lieber at the New York Times recently came out with an article that explores one of the most important problems with 401(k) plans: they can be expensive and plan participants have no idea how much their plans are costing them.
There are costs associated with with running a 401(k) plan–administrative costs for the plan, for example, are distinct and in addition to the expenses associated with the individual funds within the plan. These costs are sometimes added to the fund’s expense ratio in the creation of a share class specifically designed for retirement plans. These are usually “R” class shares.
The New York Timesarticle cites research by BrightScope, a firm that compiles data on 401(k) plan costs, that shows … Continue reading
The “dumb” money (ie. that of individual investors) is back in the stock market — and that means the market likely is at its peak, according to the Wall Street Journal. The evidence: rising investment in ETFs and equity mutual funds, as tracked by EPFR Global. The American Association of Individual Investors (AAII) also found a striking growth in bullish sentiment when polling its members last week (graphic courtesy of the WSJ): Continue reading
The second quarter was a bad one for stock investors. The Dow Jones Industrial Average was down 10%. Any big movement — even a dismal slide — does bring one opportunity: the chance to sell some investment high, buy others low. In other words, reblance. In a CBS MoneyWatch segment this morning, Jill Schelssinger, calls this the silver lining of the market’s bad, bad quarter. (Below.) Continue reading