Dips in the stock market over the last few days jolted a lot of investors. But, volatility is normal, and the best course of action right now is simply to do nothing. The past two years have seen an unusually low level of volatility in the stock market. That can lead to complacency. Last week, …Read More.
The latest SPIVA scorecard is out, and results show that persistence in mutual fund performance beyond the randomly expected remains out of reach for active managers. Since 2002, S&P Dow Jones Indices has published its biannual Indices Versus Active (SPIVA) reports, which compare the performance of actively managed equity funds to their appropriate index benchmarks. It …Read More.
Don’t rely on some commercial to ensure your financial advisor is acting in your best interest. Only work with a full-time fiduciary who puts you at the center of the planning. “I’m calling it — this is an Apple commercial,” said my 14-year-old son, about halfway into the visually stunning emotional appeal for educational experimentation …Read More.
With 2017 now done and gone, Larry Swedroe tallies how many of last year’s “sure thing” financial predictions actually came to pass. At the start of 2017, I compiled a list of predictions that gurus had made for the upcoming year, along with some items I heard frequently from investors, for a sort of consensus …Read More.
Can we better save for retirement by acting as if that “someday” is today? While on vacation recently in the Abaco Islands, on the outer rim of the Bahamas, I found myself on an important mission: taking the golf cart to the local market to restock our dwindling supply of the necessary ingredients for piña …Read More.
Larry Swedroe explores whether bitcoin is a worthwhile investment or is still purely speculative. As the director of research at Buckingham Strategic Wealth and The BAM Alliance, it’s not surprising that I’ve been getting lots of calls lately about investing in bitcoin. Just seven years ago, bitcoins were trading at about 10 cents. Four years …Read More.
Worried about equity valuations? Trying to time the market to sit out a correction? Take Larry Swedroe’s short quiz. We have data for 91 calendar years (or 1,092 months) of U.S. investment returns over the period 1927 through 2016. The average monthly return to the S&P 500 has been 0.95%, and the average quarterly return …Read More.
Mutual fund rating systems really only do a great job of “predicting” the past. Larry Swedroe reviews the research. The holy grail for mutual fund investors is the ability to identify in advance which of the very few active mutual funds will outperform in the future. To date, an overwhelming body of academic research has …Read More.
The US stock market has delivered an average annual return of around 10% since 1926. But short-term results may vary, and in any given period stock returns can be positive, negative, or flat. When setting expectations, it’s helpful to see the range of outcomes experienced by investors historically. For example, how often have the stock …Read More.
Larry Swedroe takes a look at U.S. and international equity valuations, and what the differences between them mean for investors. With the Shiller CAPE 10 above 30 (to be precise, 30.7 as I write this), it’s likely you have seen an interview or read an article in which some “guru” claims the market is on …Read More.
Five tips for helping to teach your kids about money. As parents, we continually struggle to pass knowledge on to our children. Unfortunately, sometimes financial knowledge is left off the list or lost in translation. To prevent that happening, consider the following five tips to help teach your children about money: It is never too …Read More.
As fallout from the Equifax data breach continues, Tim Maurer covers the steps you can take now to help ensure you’re protected from the possible negative outcomes of this (or the inevitable next) mass identity theft. What happens when one of the three primary entities designed to safeguard our financial identity to the outside world …Read More.