The stock market often moves two steps forward, one step back

One of the hardest things to accept about the stock market is its volatility: prices rise and fall day to day, month to month, and year to year. One month an investor’s account has grown to a certain ...

How much should an investor worry about another recession?

The drumbeat of negative economic predictions continues as more forecasters predict that a recession began late in 2007 or will arrive early in 2008. The latest convert is former Federal Reserve Chairman ...

Employees with 401k accounts flee from stocks in August

Some workers who invest in stocks through their employers’ 401k plans proved to be fickle investors this summer. In August—after sharp stock market declines in July—a near record amount of 401k ...

Think you need a hedge fund for excitement? Better think again

For the last few years there has been a steady drumbeat out of Wall Street touting the advantages of “alternative” investments for well-to-do investors. The alternative crowd argues that plain ...

Client Letter – Q3 2007

Despite a rocky start in July, your portfolio has fully recovered, as evidenced in the chart below.  The one year returns are as strong as any period during the past five years.  As I’ve said many ...

Most retirees should have more money in stocks than they think

It is common for those planning for retirement to feel that they should make their investment portfolios more conservative once they leave the workforce. After all, they have to live off their nest eggs ...

Forget the dire predictions: Get invested for the long term

Since the subprime mortgage mess hit the markets like a bombshell earlier this year, economists and analysts have been working harder than ever to forecast its future effects. Forecasting potential outcomes ...

A handful of stocks offer high returns

Groundbreaking investment research from 1992—supported by other studies since then—indicates that value stocks and small stocks outperform the stock market as a whole. Recently, professors Eugene F. ...

It is the ‘unknown unknowns’ that will affect your portfolio

Among the many peculiar word constructions former Secretary of Defense Donald Rumsfeld is remembered for, there is one that applies to all forecasts of the future: the “unknown unknowns.” In ...

Client Letter – Q2 2007

It’s easy to see what long-term stock market investors earn—just look at the averages, right?  Maybe not, according to some new research by Ilia Dichev at the University of Michigan.  From Jan. 1926 ...