More Investing Lessons from 2017

Earlier this month, we began discussing what the markets taught us in 2017 about prudent investment strategies. We tackled lessons one through three then, so today we’ll resume with lessons four through seven. Lesson 4: Don’t make the mistake of recency. Last year’s winners are just as likely to be this year’s dogs. The historical evidence […]

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Topics: Advice, Investing, Investment Strategy

Investing Lessons from 2017

Every year, the markets provide us with lessons on the prudent investment strategy. Many times, markets offer investors remedial courses, covering lessons it taught in previous years. That’s why one of my favorite sayings is that there’s nothing new in investing—only investment history you don’t yet know. Last year supplied 10 important lessons. As you […]

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Topics: Advice, Investing, Investment Strategy

More Money Is Lost Waiting for Corrections Than in Them

We have data for 91 calendar years (or 1,092 months) of U.S. investment returns over the period 1927 through 2016. The average monthly return to the S&P 500 has been 0.95%, and the average quarterly return was 3.0%. With that background, here’s a short, four-question quiz: If we remove the returns from the best 91 […]

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Topics: Advice, Investing, Investment Strategy

Testing the Fama-French Five-Factor Model

The history of asset pricing models is one of evolution. As anomalies are discovered, our knowledge advances and new models are developed. Building on the work of Harry Markowitz, the trio of John Lintner, William Sharpe and Jack Treynor are generally given most of the credit for introducing the first formal asset pricing model, the […]

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Topics: Advice, Market Insights

Vanguard Debunks Dividend Myth

Dividend strategies have drawn increasing interest from investors around the world as central banks have pursued both quantitative and qualitative easy monetary policies, keeping interest rates at what have been exceptionally low levels since 2008. But this preference isn’t entirely new; it has long been known many investors have a preference for cash dividends. From […]

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Topics: Investment Strategy

A Little Known Investment That Pays Big Dividends

Dan Solin on the power of giving. Read the Article By clicking on any of the links, you acknowledge that they are solely for your convenience, and do not necessarily imply any affiliations, sponsorships, endorsements or representations whatsoever by us regarding third-party Web sites. We are not responsible for the content, availability or privacy policies […]

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Topics: Advice, Investing

Protecting Your Finances Following the Equifax Data Breach

Equifax, one of the major credit reporting bureaus, has announced that on July 29 it discovered a data breach affecting as many as 143 million U.S. consumers. Tim Maurer goes on NBR to discuss some steps you can take next if you think your information was compromised. View the video By clicking on any of the […]

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Topics: Advice, Cybersecurity, Risk Management

Understanding Different Types of Risks

Harry Markowitz received the Nobel Prize in Economic Sciences in 1990 for his contributions to the body of work known as “modern portfolio theory.” Probably his greatest contribution was to turn the focus away from analyzing the risk and expected return of individual investments to considering how its addition impacts the risk and expected return […]

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Topics: Advice, Investing, Market Insights

More Hazards of Individual Stocks

In a recent article that highlighted the perils of owning individual stocks, I offered the historical evidence demonstrating how only a small percentage of stocks have accounted for all the gains provided by the market—with the vast majority earning a big, fat zero in aggregate cumulative returns, even before considering the impact of inflation or taxes. […]

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Topics: Advice, Market Insights