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The Uncommon Average

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.

A Global View of Equity Valuations

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.

Tips to Help Teach Your Children About Money

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.

Active Even Fails Institutions

  Vanguard founder John Bogle’s “cost matters hypothesis” explains why, after subtracting fees, returns from active management tend to be smaller than returns from passive management, as the latter costs less. However, retail investors tend to pay higher advisory and management fees than institutional investors. Since 2002, S&P Dow Jones Indices has been publishing its S&P …Read More.

More Hazards of Individual Stocks

If diversification is a free lunch, use the full buffet. In a recent article that highlighted the perils of owning individual stocks, I offered the historical evidence demonstrating how only a small percentage of stocks have accounted for all the gains provided by the market—with the vast majority earning a big, fat zero in aggregate cumulative …Read More.

What will the markets do next?

  How many new ways are there for the same old market forecasters to twist a timeless truth: None of us know what the markets will do next.   Consider the following quote from a recent Wall Street Journal article entitled, “Global Stocks Post Strongest First Half in Years, Worrying Investors.”   “The question for …Read More.

The Antidote To Stock Market Hysteria

The antidote to stock market hysteria. Market forecasters capitalize on our desire to know the unknowable. Tim Maurer, Director of Personal Finance, The BAM Alliance Just for fun, Google the words “market pullback.” There are over 2.2 million results–most of them market predictions–and the first page of results is dominated by calls for an imminent …Read More.

Gurus Mostly Strike Out – Again

Larry Swedroe tallies mid-year hits and misses for 2017’s “sure thing” predictions. Larry Swedroe, Director of Research, The BAM Alliance At the start of each year, I compile a list of predictions that gurus have made for the upcoming year, along with some items I frequently hear from investors—sort of a consensus of “sure things.” …Read More.

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