A Little Bit of Realism Can Result in a Lot More Happiness
Expectations are funny things. When we start to expect something, we also start to count on it. Once we start counting on something to happen, we start to make plans. Then, if we aren’t careful, we even start to act...
Canadian Investors Are (Mostly) Losers
I have nothing but great respect and admiration for our neighbors up north. If you spend any time in Canada, you will be struck by the kindness, civility and charm of its people. Canadians enjoy long life expectancy, high average...
Connect These Dots to Try to Improve Your Returns
Sometimes it’s necessary to piece together seemingly unrelated news items to come up with an intelligent, evidence-based plan for investing. This was definitely one of those weeks. Here are three such news items. By connecting the dots, you may be able...
Oil Isn’t Doomed To ‘Contango’
The Wall Street Journal reported that, as of June 10, speculators (emphasis mine) held a near-record bet worth $35.7 billion that oil prices would rise on the New York Mercantile Exchange. In the debate about whether investors should consider including a portfolio allocation to...
Do Lower Investment-Grade Municipal Bonds Add Value?
The Federal Reserve’s zero-interest rate policy is now well into its fifth year, probably far longer than most – if not all – investors were expecting. This persistence of low interest rates has pushed many investors to stretch for greater...
The Role Of Credit Risk In Exchange-Traded Notes
The financial crisis of 2008 underscored the role that credit risk plays in many investments. And while counterparty risk has been in the spotlight with such derivatives as credit default swaps, comparatively little attention is paid to its impact on...
Structured-Portfolio Advantages
We now turn our attention to another way in which structured portfolios can add value over index funds; namely, by creating “core funds.” Core portfolios combine multiple asset classes into one fund. The following provides a good example of why...
Why We Love Premium Bonds And You Should Too
A common error made by many bond investors is to avoid purchasing premium bonds – bonds that trade above their face value (or par, typically 100). A bond will trade at a premium when the coupon (stated) yield is above...
The real risk of rising interest rates
More than three years ago, the bond “king,” PIMCO’s Bill Gross, announced that the world’s biggest bond fund had reduced its U.S. government-related debt holdings from 22 percent in December 2010 to just 12 percent in January 2011, at that...
Why Good Things Sometimes Happen After Bad News
One of the secrets to being a successful investor is the ability to keep your head during a bear market while everyone else around you is losing theirs. To do that, you have to understand that bad news doesn’t necessarily...
