Last year, Warren Buffett said he would direct the trustees of his estate to put 90% of his remaining assets in an S&P 500 index fund and 10% in short-term government bonds. Is there a better approach for individual investors to follow?
Although popular benchmarks like the S&P 500... Read More
The financial services industry’s bias toward long-term investing as the magic formula to the problems that face the individual investor is wrong and misleading.
For example, illustrating unrealistic long-term time horizons of 100 or 200 years of equity returns (NYSEARCA:VTI) to prove that... Read More
Market correlations explain to us the similarity in performance and behavior by different types of assets.
For investors, correlation comparisons might be between two commodities (NYSEARCA:DBC), two stocks, a stock and a commodity, or even a stock and an index. Should correlations be used... Read More
What are the hallmarks of a well-built investment portfolio? Low cost, broad diversification, tax-efficiency, risk compatibility with the owner, and performance that matches or beats an apples-to-apples yardstick.
My latest Portfolio Report Card is for a married couple, C.J. in Orange County,... Read More
Gold has it bad and that ain't good. Especially if you're a goldbug.
Not only has gold officially forfeited it's year-to-date gains, but over the past month it's closely shadowed one of the globe's worst performing assets; the euro (NYSEARCA:FXE).
(Audio) Portfolio Report Card: Analyzing and... Read More
Never mind the outstanding performance that long-term U.S. Treasury ETFs (NYSEARCA:TMF) delivered last year, ETF investors are bailing on bonds.
(Audio) Volatility Sleeps, Risk Doesn't + Interview about Dual Momentum Investing with Gary Antonacci
The latest data on ETF asset flows show that... Read More
How can a person tell the difference between a healthy and unhealthy investment portfolio? Naturally, it’s by how well (or poorly) a portfolio does at addressing crucial areas like taxes, cost, diversification, risk, and performance. Here’s the problem: Poorly constructed portfolios are usually... Read More
Last week we told you how dwindling stock market volatility (NYSEARCA:VIXY) and the insatiable appetite for high risk debt (NYSEARCA:JNK) is characterizing the market's latest episode of fearless risk taking. This time around, there's another piece of evidence that confirms this scary trend.
The... Read More
Back to the future! The Nasdaq Composite Index (NasdaqGIDS:^IXIC) just crossed 5,000. Other stock market yardsticks like the Dow Jones Industrial Average (NYSEARCA:DIA) and S&P 500 (NYSEARCA:VOO) sit atop multi-year highs too. Everything that is old and worn out is suddenly new and exciting.... Read More
Higher stock prices (NYSEARCA:DIA) have kept a lid on stock market volatility.
The S&P 500 volatility index (ChicagoOptions:^VIX), also known as the "fear index," has now fallen around 17% over the past month and is back below its 200-day moving average. Does the stock market's general... Read More