Interesting article in the WSJ this morning on seven pointers to keep portfolios on course. One of the most important bullet points was about getting real about your tolerance for pain: When stocks are mostly going up, many investors believe they have the fortitude to tolerate a fair amount of risk. But as soon as […]
I just came back from Toronto where I gave a presentation to the Marketing Wealth Managment to High Net Worth Investors Summit. I wasn’t that familiar with how Canadian wealth management firms operate before I went, but they sound just like the wealth management firms in the U.S. Which is a problem since just about […]
Yesterday saw a massive stock rally on news of an agreement out of Europe. So are we out of the woods? Probably not. It looks like the deal still has a lot of holes in it and a lot to be worked out. It also looks like it doesn’t fix anything; instead it just takes […]
Yesterday was an interesting day for Gold. During most of the crisis Gold has been a safe haven, going up when stocks go down and going down when stocks go up. This changed in September and this month. Yesterday stocks were down around 2% and Gold was up around 3%. It will be interesting to […]
‘Buy-and-hope’ is not good enough The author of this article rightly points out the main problem with the typical 60% stock/40% bond portfolio. Stocks are much more volatile than bonds so you could have a period (like 2008) where stocks go down a lot and bonds go up a little. The bonds help some but […]
As I write this the market is in rally mode for October and we are hearing the talking heads comment about how the crisis is over. What is an individual investor to do? Markets have trends and countertrends. Trends are the dominant move and countertrends are shorter term moves in the opposite direction. The market […]
In a research report Deutsche Bank recently said the following: “The next decade will likely be one where buy and hold will generally be a fairly poor option in developed markets,” Deutsche Bank analysts write in a letter to clients, MarketWatch reports.” It would have been great, and saved investors a ton of money, if […]
Jack Bogle’s advice for the long term investor—hold onto your hat and ride out the swings. Sounds like a lot of fun at the carnival but not a smart way to invest. Instead investors should stay in harmony with the trends in the market. Why ride out the swings when you don’t have to?