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.
People’s feelings about the stock market are disturbingly fickle, as a key investor survey demonstrated during the October downturn. Trouble is, many act on their whipsawing views and make big, avoidable mistakes.
What’s the primary reason to invest in stocks and bond? To build assets for your retirement. For some, that may be a long way away, so they focus on more short-term needs. That’s a mistake. You need a plan.
Two-thirds of Americans have no financial plan, a Northwestern Mutual survey shows. And of those who do have one, it too often is flimsy.
Do you want to more easily change your over-spending behavior? According to some new research, maybe all you need is to count your life’s blessings. A mindset of gratitude gives people the patience to handle money better.
So the Federal Reserve is done with its two-year stimulus program of bond-purchases. Whether this helped the economy or not, it surely buoyed stocks. Without Fed support, get ready for a bumpier ride in the market.
The stock rally had a major interruption recently. The week ending Oct. 17 saw wild movements in stock prices. Is such volatility normal? Yes. Get used to it, because the market has changed and now emphasizes more speed.
The hallmark of the undisciplined investor is a tendency to buy high and sell low – in other words, to follow the market herd. That’s what California’s public pension plan, the nation’s largest, and others like it did: CalPERS got into hedge funds when they were popular, and now that they’re not, it is bailing.
Isn’t it odd that the government’s economic growth number keeps climbing with each revision? You don’t think there is a political component to this, do you?
If you repeat something often enough, you may even start to believe it. So try this phrase: “The economy is improving. The economy is improving. The economy is improving.”
If you invest in bonds, you probably worried in recent years about rising interest rates. You shouldn’t.
Climbing rates mean your existing bonds effectively yield less and make you yearn for newer bonds with higher yields. Bond prices fall as yields rise. A valid concern – today’s historically low interest rates are overdue to jump – but is now when to scrap your old paper?
First, consider one of the most basic principles of investing: Markets are unpredictable. Are we certain interest rates will rise? If so, soon?
Ever plan a picnic, family ballgame or just a few hours kicking back in the sunshine – and first check your TV, radio, laptop or smartphone for the weather forecast? Did the weatherman nail it? The same uncertainly blows across many predictions – including those for the stock market.