The Great American Pension Rip-Off
Unless you work for a city or state government, you probably don’t have a traditional pension — also known as a “defined benefit plan.” The number of employers offering these plans has decreased sharply, and now, by some estimates, only 29...
Your 401(k) Plan May Provide a False Sense of Security
The 401(k) landscape is definitely improving. But with this improvement comes a new danger: Your plan may be giving giving you a false sense of security. According to a report on 2013 defined contribution plan data, “How America Saves 2014,”...
A Close Look At Value & Momentum
Two of the most studied capital market phenomena are the value effect, where value stocks outperform growth stocks; and the momentum effect, where recent relative performance predicts near-term returns. Clifford Asness, Tobias Moskowitz and Lasse Pedersen add to the body...
How To Protect Us From Ourselves
I recently read “The Hour Between Dog and Wolf” by John Coates, and it’s one of the best books on human behavior and finance I’ve ever come across. It could literally help investors get protection from their greatest enemies: themselves....
Does Taking Corporate Credit Risk Add Value?
Earlier this week, we looked at whether adding credit risk in the form of lower investment-grade municipal bonds was an efficient approach to improving returns. The evidence is clear that this isn’t the case. In fact, taking more credit risk...
Just ignore market and economic forecasts
Stocks are about to plunge! Before you panic, this isn’t my forecast and it wasn’t made today. That was the warning from Wells Fargo strategist Gina Martin Adams on September 20, 2013. The S&P 500 index had closed the prior day at 1,726,...
My Take: Holding Your Breath for Financial Success
by Brian Zdrowak Have you ever tried to see how long you could hold your breath underwater? When I was a kid, whether on family vacations in Picton, Ontario or at a friend’s pool, I would challenge others to see...
