Submitted by Jim Ludwick on Wed, 12/11/2013 - 3:00pm
Put the brakes on contributing to your retirement accounts right now, since stocks seem parked at record high prices, and instead save for a car or other big purchase? Lets’s look at whether that’s a good idea or not.
I frequently receive this question when investors think the market trembles on a big dump and they want to dodge it. Let’s look at where the market is, how it runs and where it might run to.
Submitted by Brenda P. Wenning on Tue, 12/10/2013 - 9:00am
A taperphobia epidemic has Wall Street in a panic yet again. Taperphobia – the unease over the Federal Reserve’s possibly ending its bond-buying campaign – is an irrational fear of common sense.
Symptoms include a falling stock market (when we first heard about the taper), soaring bond yields and ongoing anxiety attacks. There is a cure, although it’s expensive. It costs at least $85 billion, the central bank’s outlay each month, yet that’s enough to cure all of Wall Street and send the stock market soaring.
Submitted by Lewis J. Walker on Mon, 12/09/2013 - 9:00am
The U.S. stock market hit a record high, real estate values are recovering and the world’s largest economy is expanding, albeit slowly. Nearing year-end is a good time to ask: Does all this wealth make America exceptional?
Submitted by Larry Light on Sat, 12/07/2013 - 9:00am
The ancients spoke of three ages of man. In modern times, we call them demographic cohorts. For financial advisors, they require different kinds of advice, but they lately share a common – and self-defeating – aversion to risk.
They don’t have enough in stock, which is the key to growth. We see this in the constant exodus of all age groups from equity mutual funds.
Submitted by Raul Elizalde on Thu, 12/05/2013 - 10:52am
Now could be the time to diversify away from high-flying U.S. stocks, and laggard European shares seem to be the appropriate choice.
In recent years, U.S. stocks outperformed European equities – and much of the rest of world – by a large margin. Investors may conclude that investing abroad, even in the name of diversification, is nothing but a waste. This may be a mistake.
Submitted by Dan Crimmins on Wed, 11/27/2013 - 3:00pm
Buying top-rated mutual funds, in hopes of reaping turbocharged performance in the future, is not smart. A better idea: Using index funds or exchange-traded funds that cover broad asset classes – and skip the ratings.
The classic proof is the failure of actively managed funds to beat indexes covering their specialty areas, according to Standard & Poor’s.
Submitted by Walid L Petiri on Tue, 11/26/2013 - 9:00am
Socially responsible investing (SRI) is increasingly popular, with more and more mutual funds offering this ideals-based style. It is a diverse field, more known for what they avoid (some won’t invest in cigarette companies, others bar defense contractors, etc.) than what they embrace (pro-green or promoting diversity, for instance). But are they good investments? Actually, the answer is … yes.