Submitted by Nathan Sonnenberg on Wed, 09/03/2014 - 9:00am
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.
Submitted by Walid L Petiri on Mon, 08/11/2014 - 9:00am
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.
Submitted by David John Marotta on Thu, 06/26/2014 - 9:00am
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.
Submitted by Roger Wohlner on Mon, 06/09/2014 - 9:00am
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.
Submitted by Yale Bock on Mon, 06/02/2014 - 9:00am
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.
Submitted by Raul Elizalde on Wed, 05/14/2014 - 9:00am
Author Michael Lewis set off a firestorm of criticism against high-frequency trading, where stock transactions take place within millionths of a second. He may be right in arguing that HFT is a scheme designed to enrich its practitioners at the expense of everyone else. But lost in all the acrimony is that high-speed electronic trading brings two benefits for everyone: better execution and more accurate ETF pricing.
Submitted by Matthew Illian on Fri, 04/25/2014 - 9:00am
If you don’t like how a company is doing its business, then sell the stock. That was the longstanding advice to individual investors, because one shareholder is unlikely to change management’s course. Now, though, mutual fund companies increasingly are involved in activists’ struggles to overhaul errant companies.
This means that individual investors can be part of a collective effort to hold executives to account for underperformance, overly generous pay or other policies that deplete shareholders’ returns.
Submitted by Lewis J. Walker on Tue, 04/08/2014 - 12:00pm
Many investors have skewed ideas about risk. Even after 2013’s stock market run-up, they fear losing money more than they wish to make more. That could be a mistake. What’s the best way to handle risk?
Investment advisors and financial planners are getting more and more statements of this ilk: “I would like to invest to make more money but I don’t want to take a risk.” Or: “I want an investment more rewarding than a bank account but I want it to be safe.”
Submitted by Lon Jefferies on Tue, 04/01/2014 - 9:00am
So where is the big, long-anticipated yield hike in the benchmark 10-year Treasury? It has yet to materialize. The outlook for bonds is that huge swings in their value are unlikely, regardless of what happens to interest rates.
Submitted by Matthew Tuttle on Fri, 12/13/2013 - 9:00am
New alternatives to conventional exchange-traded funds and mutual funds, which are weighted by their market value, have gotten a lot of attention lately. But are these so-called smart beta products any better? Maybe, maybe not. Here are a few caveats.