Human beings have an astounding facility for self-deception when it comes to our own money. We tend to rationalize our own fears. So instead of just recognizing how we feel and reflecting on the thoughts that creates, we cut out the middle man and construct the façade of a logical-sounding argument over a vague feeling. These arguments are often elaborate, […]
During the past quarter, the world-wide equity markets performed fairly well, helping our 1-year returns look very strong. The chart below shows the 3-month, 1-year, and 10-year performance of many DFA funds (representing different asset classes) compared to the S&P 500 Index: Market Returns for the period ending September 30, 2012 DFA Fund / Index 3 Month Return 1 Year Return […]
Stock prices rallied sharply around the world in the third quarter, with forty-two out of forty-five countries tracked by MSCI showing positive returns in US dollar terms. Total return exceeded 10% in nineteen different markets, while Ireland, Japan, and Morocco registered minor losses. For the twelve-month period ending September 30, 2012, forty markets had positive returns, with six countries—including the […]
There are various ways for investors to get involved with the independent film industry. However, investing in independent films is high-risk. “Such investments are best suited for people who have between $5 million and $10 million in net worth,” says Christopher Jones, a fee-only financial adviser in Las Vegas. Read the Full Article
As we age and gain experience we should get wiser, right? We’ve learned a lot from our mistakes and those of others and we gain a sense of calm and deliberation that we may not have had in our younger years. When it comes to finances this may be true only up to a point, the latest cognitive research shows. Research […]
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 […]
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 […]
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 […]
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 […]
Some investors today are doing what worried investors always seem to do in times of stress—trying to avoid “risk” by buying the “safest” assets. In this case that has meant buying government bonds from the United States, Germany, Australia, the Netherlands, and other countries considered safe havens. Panic buying has pushed yields in some cases to negative levels, meaning investors […]
