Investing

Why So Many Mutual Funds Can’t Beat the Indexes

Mutual Funds

Investing in stock indexes doesn’t require any skill in stock picking at all. How can no skill beat the presumed skill of fund managers? They obviously aren’t using much skill. Actively managed mutual funds have quite a few limitations versus what we can do with our own accounts as individual investors. If we are considering […]

What We Can Learn from This Week’s Stock Rally

Stocks

If the stock market was really concerned about things like valuation, the coronavirus offered the bears a perfect opportunity to flee. The bulls are still carrying the day. In the midst of what was a dramatic selloff in the markets that coincided with concerns that China’s response to the coronavirus threat that they are battling […]

Peering into the Twisted World of Income Investing

Income Investing

Calling the way that we advise those who consider themselves to be “income investors” clueless doesn’t quite fit. Clueless means knowing nothing, but this is worse than that. There are degrees of badness when it comes to investment advice, but there’s nothing that even comes close to the way that those who consider themselves to […]

Why We Want to Be Careful When Investing in Value Funds

Value Funds

Value funds seem to take a defensive approach to investing by steering away from good performing stocks and favoring poorer ones. This isn’t that good of a deal though. It’s a given that value fund investing will provide lesser returns than average, not that the average is something that we should be setting our sights […]

Coronavirus Teaches Us to Use Bonds the Right Way

Coronavirus

Back on January 24, the stock market began to buckle under the force of the coronavirus, we told you it was time for gold, but bonds have been picking up as well. Investors tend to hold a lot of bonds, presumably for a rainy day, although given that the sun shines most of the time, […]

Managing Long-Term Positions with Futures Trading

Futures Trading

Many investors wish to keep their long-term stock positions for tax reasons, but this involves taking on the full risk involved. Managing this with futures can make sense. It’s pretty easy to manage your positions in stocks just by moving in and out of them as needed. While stocks in general gain in value over […]

U.S. Officials Say Debt Problem Worse than Believed

Debt problem

The U.S. Congressional Budget Office has just issued a warning that the debt situation has deteriorated considerably since last August. How much do we have to worry about this? A trillion dollars is not an amount that people can easily get their heads around. This is why people break this down on a per-capita basis, […]

Ralph Nader Warns of Pending Stock Market Implosion

Ralph Nader

Ralph Nader isn’t just a legend in his field, he stands far above anyone else. His field of expertise is not the stock market, although that isn’t stopping him from speaking out. You really had to be alive during Ralph Nader’s heyday to fully appreciate how big a force he was in consumer protectionism. He […]

Schwab Rolls out New Ad Promoting Stock Balancing

Schwab

Seeing a company like Schwab running an ad encouraging investors to diversify by balancing stocks and stock sectors may not appear noteworthy, but it certainly is. Small children will often ask why when you tell them something, and as you try to explain it to them, they will often just keep asking why to get […]