The heightened volatility that has afflicted the U.S. stock market for the past several months points out the potential benefits of active portfolio management. What distinguishes an active investment style from a passive style — and what benefits may active management provide in a volatile market? Dueling Styles Because active managers may rely on market […]
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‘Investing Insight’ Category
There’s no question that we experience emotional pain and anxiety when our portfolios are losing money due to market downturns. Behavioral scientists tell us that we feel losses twice as keenly as positive returns. But that doesn’t tell us what we really want to know, which is: other than selling at the wrong time and […]
If you want to look like a brilliant stock market analyst, keep predicting the same thing over and over again until it finally happens. A great example of this marketing strategy is newsletter publisher Marc Faber, whose website modestly describes him as “an international investor known for his uncanny predictions of the stock market and […]
Fixed-income exchange-traded funds (ETFs) are bond index funds that are listed on a stock exchange and trade throughout the day. There are fixed-income ETFs that focus on corporate, government, municipal, international, and global debt, as well as funds that track the broader Barclays Aggregate Bond Index.1 In addition, investors may purchase bond ETFs that focus […]
Once a retirement savings plan has been approved and is in place, it’s tempting for a plan sponsor to sit back and adopt an “I’m done,” hands-off attitude. However, to ensure that a plan continues to operate effectively, employers should periodically review plan provisions and features. Here is a brief checklist of key points to […]
Many people, when they’re thinking of investing their money, take the time to do their homework on current markets and try to understand to the best of their ability what their best investment options are. Some are able to grasp the trends and concepts of the financial market, whereas others become frustrated at their lack […]
Surely one of the strangest trends on the world investment markets these days is banks paying negative rates to depositors, and bonds issued with negative interest rates. Basically that means that these institutions, and issuers, are guaranteeing a loss when you invest in their bonds or otherwise lend them money. This unusual trend, which has […]
Oil prices are getting all the blame for the recent U.S. stock market downturn, but it’s hard to see the connection when so many companies and consumers benefit from low energy costs. A better culprit is the strong dollar. The accompanying chart shows how strong the dollar has become compared with a basket of international […]
After the recent downturn in the U.S. and global stock markets, you can be pardoned if you wished that the markets were a bit tamer. Wouldn’t it be nice to get, say, a steady 4% return every year rather than all these ups and downs? Be careful what you wish for. There are at least […]
Suppose a mutual fund knew for sure which 10% of the largest U.S. companies would earn the highest returns over the next five years, over each upcoming five-year period. You’d invest in that fund and hang tight, right? A research company called Alpha Architect recently posed this as an interesting thought experiment. It divided all […]