On May 6, the stock market suffered a massive drop in stock prices that took the Dow Jones Industrial Average down by 1,000 points in a matter of minutes before recovering much of the loss. Although market participants and federal regulators still cannot explain what happened, some popular new investment vehicles’ exchange traded funds, or ETFs—have lost a bit of […]
Month: May 2010
REITS provide portfolio diversification
Investors who own a typical stock and bond portfolio don’t have to go too far to find a handy diversifier. Shares of real estate investment trusts are traded on the major exchanges just like any other stock. However, unlike other stocks that represent ownership of companies, REITS offer ownership in commercial real estate. They give shareholders access to a steady […]
How to succeed in retirement: Stocks and 4 percent withdrawals
How to invest a nest egg and what is a safe withdrawal rate are the two biggest questions for anyone in or near retirement. Although the answers are far from simple, a lot of recent academic research continues to shed light and offer guidance to the perplexed. The uncertainties of future inflation, investment market returns, and individual life expectancy can […]
