The investment climate has been almost manic over the last year, with wild swings in global markets due to economic news and the financial crisis in Europe. At times like these some in the investment world argue that passive investors who sit on a diversified portfolio will get whipsawed. Instead, the argument goes, they should hand their money to an expert […]
Month: August 2012
Gold’s reputation as an inflation hedge is vastly overdone, study says
Gold has soared in popularity in recent years as a hedge against inflation and weak currencies. Unfortunately for the gold bugs, a new study shows it is neither. In fact, the only time period for which gold has served as an adequate inflation hedge was the last 2,000 years. Any holding of less than that did not hedge inflation, say investment […]
Do not go into retirement without addressing the risks
Retirement can be the most exciting and rewarding time of all, but, like any other stage in life, there are unique financial risks that need to be addressed. Longevity, inflation, health care needs, the death of a spouse, problems with living independently—all can affect a retiree’s quality of life. Changes in laws and social welfare programs can have dramatic effects on a […]
Knightmare on Wall Street
Question: Which of the following statements applies to last week’s stock market behavior? Computer errors at a major trading firm generated millions of faulty trades, causing dramatic and puzzling price swings in dozens of stocks Wednesday morning. A New York Times columnist fumed that “Wall Street has created its own Frankenstein. The machines are now in charge.” Stocks on the fifty-two-week new […]