We hear all the time that spreading our portfolio’s holdings across many classes of assets is the best defense against losses when the bears hit Wall Street. There’s a good chance your diversification strategy may now not work as you intended, though.
Despite a good 2014, the stock market went through some tough days. At one point in October the Standard & Poor’s 500 was down about 8% from its all-time high reached just a month before, then a few weeks later rebounded to set records.
You don’t hear much about them, but closed-end funds offer a way to buy a good portfolio of securities, often for cheap. When markets fall (as they recently did and will again) CEFs can be attractive alternatives.
We can’t control the markets; we can control the costs that help or hinder our investment strategy. What may seem like only a slightly higher fee today can add up to a significant cut of your net return over time. And the first step in minimizing fees is spotting them.
Around the globe, government manipulation of currencies and stock markets are increasingly common. The likely outcome: a huge mess, menacing the world’s economies, including that of the U.S.
The value of money is variable. The currency of one country continuously fluctuates in value relative to the currency of every other country – and owing to global interdependence, those fluctuations can have a dramatically baleful economic impact.
After tax season, when they realize exactly how much tax they paid at home, a number of my friends, colleagues and clients asked me what they should do to reduce their taxes next year. While I’m not a tax professional, I certainly pay attention to tax rules and rates regarding investing.
My short answer to their question was – create a portfolio of low-fee, thoughtfully constructed stock index mutual funds or exchange-traded funds. Yet not all of them do the job for you. Here’s how to find the right one.
Odds are that the U.S. energy renaissance now under way will continue for some time. That means investing in energy companies should bring a bountiful result. But the menu of possibilities is dauntingly large. What works best? One answer: natural gas and an investment vehicle called a master limited partnership.
The standard that the investment world most typically uses for the performance of mutual funds and other assets is the Standard & Poor’s 500 index. That usually is a bad idea because the S&P, which contains the largest valued stocks in the U.S., seldom reflects the investments you own.
If you’re like many investors, mutual funds constitute a big part of your portfolio. But how do you assess them, beyond their returns? Here are four aspects of evaluating your actively managed mutual fund holdings.
Who runs the show? Management is a vital consideration when you evaluate an actively managed fund designed and invested to beat market benchmarks.
The stock market is choppy this year, rising and tumbling. After 2013’s big run-up, it slumped in January and April, and then fitfully edged up again. Despite the gyrations, what’s helpful is to realize that a few things hold true: lockup expirations can punish prices, merger stocks are chancy and – on the positive side – energy shares look good for the long term.