Category

Investing Lessons

Active Fund Managers and Stock Pickers failed to beat their benchmarks again in 2018.

Stock Pickers Fared Poorly Again in 2018

By | 2018, Active Investing, Investing Lessons, Investment Returns, Market Index, Market Volatility, Passive Investing, Returns | No Comments

With equity markets experiencing levels of volatility not seen in recent years, 2018 was widely viewed as an opportunity for stock pickers and other active managers to outperform their passively managed and index fund counterparts.  The actual result was more of the same mediocre performance and a reinforcing belief that it is difficult to beat the market. According to The…

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John Bogle is the father of index funds.

Remembering John Bogle

By | Investing Lessons, Investment Returns, Market Index, Passive Investing | No Comments

The investing world lost an innovator and advocate for small investors everywhere when John Bogle passed away on January 16, 2019 at the age of 89.  Known affectionately throughout the investing world as Jack, Bogle rose to fame as the founder and former chairman of the Vanguard Group, located in Malvern, Pennsylvania. Jack Bogle is credited with launching the first…

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How will investors face in 2019?

Looking Ahead to 2019

By | Bond Markets, Equity Markets, Fixed Income Markets, Investing Lessons, Investment Returns, Market Corrections, Market Volatility, News and Events, Patience, Real Returns, Returns, Speculation, Stock Markets | No Comments

After the worst year for equity markets in a decade, some investors may be asking themselves “what now?”  It is not unusual for investors to question their investment decisions and investment allocations after a year where very little seemed to go right for equity markets.  After a trying year in 2018, what does the new year hold for investors, and…

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Mkt volatility

How to Handle Stock Market Volatility

By | Investing Lessons, Investment Returns, Market Corrections, Market Volatility, Returns, Risk, Stock Markets | No Comments

Barring an extraordinary Santa Claus rally in the last week of the year, 2018 stands to be a disappointing year for domestic and international equity markets alike.  Investors have enjoyed an uncharacteristically long bull market rally that has lasted almost a decade, so the recent downward market volatility we have experienced may seem very unsettling to many investors.  It is…

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The clock is running out on many Americans facing a retirement time bomb.

Time Bomb Looms for Aging Americans

By | Baby Boomers, Investing Lessons, Retirement, Retirement Planning, Retirement Savings, Social Security | No Comments

A recent Wall Street Journal article “Time Bomb Looms for Aging America” highlights a growing crisis for older Americans nearing and entering the early stages of retirement.    What the article’s authors uncovered in their research is that the generation reaching retirement age is in worse financial shape than the previous generation.  This will be the first time this has occurred…

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Market Volatility Can Test the Resolve of Investors Who React Emotionally

Some Perspective on Market Volatility

By | Investing Lessons, Investment Returns, Market Corrections, Returns, Stock Markets, Uncategorized | No Comments

Before the brief ten percent market correction that began on January 26th and ended on February 8th, domestic equity (stock) markets enjoyed the longest period of market calm in history.  Prior to the recent period of volatility, the S&P 500 had not retreated by 3% over one day or several days since November 4, 2016.  The streak shattered the previous…

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Bitcoin:  Wave of the future, or bubble in the making?

Should You Bite on Bitcoin?

By | Bitcoin, Crypotcurrency, Expected Return, Investing Lessons, Returns, Risk, Speculation | No Comments

No matter where I went over the holidays it seems there were three subjects everyone wanted to discuss.  Whether it was a formal holiday party, or an informal gathering of old friends, discussions centered around 1) The new tax plan and what it would or wouldn’t do for the economy, 2) The job Donald Trump has done as President in…

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2017:  The Year in Review

The Year in Review: 2017

By | Investing Lessons, Investment Returns, Market Index, Returns, Stock Markets | No Comments

Heading into the year, 2017 was viewed by many investors with a great deal of trepidation and concern.  Political turmoil in the US, uncertainty in the global  economy, rising tensions in the middle east, strained relations with North Korea, and an eight year-old domestic bull market gave many investors pause for the prospects of 2017. For all the potential causes…

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Sir Isaac Newton's South Sea Bubble experience provides investors with valuable lessons.

Lessons from Newton’s South Sea Bubble Disaster

By | Investing Lessons, Market Corrections, Stock Markets | No Comments

If I were to postulate that Sir Isaac Newton (1642 – 1727) was one of the most brilliant minds the human race has ever seen, I would have ample evidence to support my position.  The English physicist and mathematician is legendary in his contributions to the advancement of mankind.  Newton is credited with inventing the reflecting telescope in 1671.  Newton…

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A new fifteen year study finds that passive investing strategies beat active investing strategies.

Passive Investing Beats Active Investing Over 15 Year Timeframe

By | Active Investing, Investing Lessons, Investment Returns, Passive Investing | No Comments

“Just wait until next year” was the lament of faithful Chicago Cubs’ fans for over 100 years before last season.  From 1908 until their victory over the Cleveland Indians in the 2016 World Series, fans of “the Lovable Losers” would lick their wounds from the previous season while optimistically looking forward to next spring when the Cubs would begin the…

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