Economists and market watchers are divided on the need for more government stimulus and the best way to handle a portfolio in a tepid market on a modest decline.
Jeffrey Kleintop, chief market strategist at LPL Financial, said disappointing economic data didn’t signal a double-dip recession, but a slowed pace of an already uninspiring recovery.
“Much of
Continue reading Investing Strategy in the New Normal: Equity, Global, Emerging Markets
A lot has to go wrong to justify today’s rock-bottom bond yields
When Japan slid into deflation in the mid-1990s bond investors were caught unawares. As late as 1995 yields on government bonds, a haven in times of deflation, were still approaching 5%. Investors today are not about to repeat that mistake. Inflation may be positive
Continue reading Government Bonds – Should you buy TIPS instead?
How to invest in stocks, bonds and commodities for deflation or inflation? Do you take on more debt?
St. Louis Fed President James Bullard said recently that the risk of deflation has risen, and warned of a period of falling prices and slow growth in the U.S similar to that of Japan in recent years.
Fed Chairman
Continue reading How to Invest in Stocks, Bonds and Commodities For Deflation or Inflation
The logic behind dollar-cost averaging is flawed, but the plan makes sense for most investors anyway for reasons that have more to do with paying for protection than seeking reward.
Dollar-cost averaging is a fancy name for a simple concept. Instead of investing a huge chunk of savings into an investment, say a stock mutual fund,
Continue reading Dollar-Cost Averaging: Slightly Lower Returns but Financial Protection
Concerned about your wealth after the latest market drop? Don’t make drastic changes with your money.
Corrections, and even steeper drops, happen regularly. The problem with trying to time the market or guess where it’s going next is that you have to be right twice, says Sandip Bhagat, the head of equities at Vanguard. You’d have
Continue reading Wealth: After Market Decline, Next Steps
Without full and proper disclosure, investors can’t make an informed decision. Even with full and proper disclosure, however, many investors still can’t make an informed decision.
Regulators still should push for better disclosure, but every investor also should rely on a standardized checklist of questions that must be answered before any purchase. Perhaps the most important:
Continue reading Investment Risks Hide in Plain Sight
The biggest difference between emerging and frontier markets concerns the criteria of size and how far along they are in developing legal and regulatory systems, critical elements for international investors.
To qualify as an emerging market in the MSCI Barra global equity indexes , an economy must have a certain number of companies that meet a
Continue reading Frontier Markets: Lower Price/Earnings Ratio than Emerging Markets
1. Slash Investing Costs They Drag Down Performance: The average diversified U.S. stock mutual fund charges 1.3% a year in expenses. If your fund isn’t beating its benchmark (or you don’t have the time to monitor actively managed funds), you’re better off buying a low-cost index fund or ETF that hews to the benchmark. For
Continue reading Cut Your Investing Costs – Four Ideas to Cut Your Costs Right Now
New money coming to stock mutual funds has been negligible even as returns have been among the best on record. An influx into stocks in the coming months would suggest investors once again have waited too long.
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Over the last market meltdown many investment scams have come to light. Many of the victims were not novice investors, but rather smart and well-educated investors. So why did they fall for these scams? There could be many reasons such as trust, greed and peer pressure, but one thing they all have in common is
Continue reading Investment Scams – Signs Investors Should Look For