Questions About Alternatives

Alternative investments are all the rage these days. Think through all the details, though, before deciding if they fit your financial plans.

Mutual fund companies fall all over themselves to sell financial advisors and their clients on “liquid alts” easily bought or sold or on hedge fund-like strategies with the daily liquidity offered in a mutual fund wrapper.

Women’s Financial Planning

In his best-seller Men Are from Mars, Women Are from Venus, John Gray talks about men “going to their caves.” Yet in financial planning, both genders often retreat from difficult situations and decisions. This harms financial futures – especially women’s.

Good Earnings – Huh?

So second quarter earnings will be strong? We keep hearing that, but the forecasts don’t tend to pan out. Until July’s dip, stock prices this year marched higher, seemingly of their own accord, accompanied by a steady parade of misinformation.

Earnings simply aren't that great. The first quarter earnings myth keeps growing even as the second quarter earnings dream blooms. First quarter earnings growth for the Standard & Poor’s 500 were only 2.1%, according to FactSet.

Is Universal Index Life OK?

A much-discussed insurance product lately is the universal index life policy. This type is best for people who need the reassurance of a guaranteed return and have no place left to shelter income. But high fees and caps on returns are downsides.

How to Invest in an Up Market

As the stock market has reached all-time highs over the past year, perhaps you thought about getting in the game and grabbing your share. But beware. Investment decisions during periods like this are challenging because the biggest enemies in money management – fear and greed – influence your decisions most at times like these.

With a bull market now well into its sixth year despite frequent threats of a looming correction, how can you avoid making rash decisions amid market highs?

Greed and the Penny Stock

We all know that greed is bad, and disciplined investing is the best way to go. But too often, our emotions take us off track. A disturbing case in point is the tale of the most recent hot-stock phenomenon, called Cynk.

Investments in 2020

The pace of recovery makes most investors edgy, yet regardless of the short-term pains, the years leading up to 2020 promise to be big, exciting and rewarding with all the opportunities surrounding technology and innovation.

Apple, High-Flying Value Stock

It’s not every day that a hot tech stock is also a value play. Apple, the highest market value company in the world (a distinction it trades with Exxon Mobil), has that distinction. And even though some worry that this innovation mill will peter out now that founder Steve Jobs is dead, there’s ample evidence that what was once known as Apple Computer still has its mojo.

Goals Trump Beating Market

When you want to evaluate your investment returns, what do you compare them with? Those of friends and neighbors? The latest market trend? To fairly assess how your investments perform, you look at your goals.

Now that summer is well along, stocks have pushed well beyond a five-year bull market run. You hear people talk at company picnics, club get-togethers or family events about how well their stocks do. The more successful the stories you hear, the more you feel like you’re falling behind even given occasional down days on Wall Street.

How to Hedge for Inflation

No investment can perfectly hedge inflation, but placing some protection against inflation in your portfolio is still possible. Your best bets are short-term Treasury Inflation Protected Securities and commodities.

When evaluating whether an asset class effectively protects against inflation, we examine the correlation between the returns and inflation. The stronger the correlation is, the better inflation protection the asset provides.


Subscribe to RSS - Investing