401(k) Madness
All across America, a familiar ritual is repeated at least quarterly. Sponsors of 401(k) plans meet with their brokers, insurance companies or other advisers. The purpose of the meeting is to decide which funds to keep as investment options and...
Index investing still wins in emerging markets
A regular reader sent me the following email: “If you get the chance, I would appreciate you including a piece about whether the Franklin Templeton Developing Markets (TEDMX) fund adds value. Its manager, Mark Mobius, is always quoted as the...
Investors Too Focused On Dividends
Despite the fact that financial theory has long held that dividend policy should be irrelevant to stock returns, one of the biggest trends in recent years has been individual investors rushing to buy dividend-paying stocks. In some cases, it’s a...
Go Ahead, Spice Up Your Investing Life
“I’m bored.” You’ve said it. I’ve said it. Your children or nieces or nephews have said it. Our usual response to these two little words is to recommend doing something about it. You tell children to go outside. You pick...
Beware The Promise Of Junk Debt
Until the recent sell-off toward the end of July, yields on high-yield bonds had been hitting record lows. At the end of June 2014, the yield on five-year bonds rated BB—the credit rating just below investment grade—was only 4.3 percent,...
Resurrecting the Size Premium
There have been a number of articles over the past few years claiming to refute the existence of a small-cap (or size) premium, which is the historical difference in returns between small-cap stocks and large-cap stocks. While the critiques have...
Bank Loan Funds No Free Lunch
When interest rates are low, some investors stretch for yield by taking on credit risk. At the same time, many investors are also seeking alternative ways to protect themselves against a potential rise in interest rates, without sacrificing that hard-earned...
Don’t-miss reads for investors
It’s not too late to make some summer reading recommendations, and a quick review of my bookcase turned up some titles I think would be valuable for any investor. These books cover topics ranging from a detailed explanation of how...
Investors Deserve a Mea Culpa From Financial Journalists
When will financial journalists draw a line between entertainment and information? According to a new book, people subconsciously shut off the part of their brain when watching some financial news shows. The book, “Clash of the Financial Pundits,” co-authored by...
