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.
Much of the investing public has its money tied up in mutual funds, trusting to their professional management. So wouldn’t it be nice to think that funds make sure companies they invest in don't overpay their executives? Too bad the funds largely look the other way.
Socially responsible investing considers both financial return and social good. This strategy gives you a chance to support the causes you care about, and adds diversification to your investment portfolio.
Shopping season blazed in full glory just a few weeks ago, the strategic plans of browsers and spenders playing out in packed aisles nationwide. You were probably in one of those aisles – and while drawing a bead on that perfect and marked-down gift, you also honed a skill to help your portfolio.
As hard as it may be to believe, I recommend paying very little attention to how the big stock market indicators, such as the Dow Jones Industrial Average, are doing.
Up 100, down 150, up 70, up 80: Recently the stock market became increasingly volatile, exhibiting wild swings daily, if not hourly. When your nest egg’s tied to Wall Street, how can you get used to these whipsaws? More important, can you profit?
Spread your investment eggs over enough baskets to feel safe? What about when your portfolio lags the market? This is perhaps cause for concern – but not for panic.
Ice cream melts. Snow melts. You may have seen someone melt down emotionally or even melted down yourself. Right now, markets may be melting up in a sharp, emotion-driven improvement in performance. Is this good for your portfolio?
Sustainable investing is a growing trend that will soon be the norm. Also known as impact investing, it allows investments to serve a dual purpose – provide economic return and support organizations that have responsible environmental and social policies. More investors will require that their portfolios align with their values without sacrificing performance.
Why bother investing in a hedge fund? Too many of them deliver subpar performance and they cost too much. The only reason is snob appeal.