Learning Center

Report Says Ads Show Illusion of Fiduciary Duty

Date20 Apr 2015

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Don’t be fooled. Advertisements can mislead investors on advisors’ responsibilities to clients. It’s funny that there’s even a “debate” over whether brokers should be required to act in the best interest of their clients. It’s even more nonsensical that many investment advisors to retirement plans don’t have this obligation. Much has been written on this...

Comparing DFA Small Value to Vanguard Small Value

Date20 Apr 2015

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Over the past few months, the difference in historical performance between DFA Small Value (ticker: DFSVX) and Vanguard Small Value (VISVX) has narrowed. For example, for the 10-year period ending December 2014, the compound annual return of DFSVX was 7.9 percent while VISVX earned 8.3 percent. Comparatively, for the 10-year period ending December 2012, compound...

Some Index Funds Are Bad Choices for Investors

Date20 Apr 2015

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Many index funds are smart choices for investors, but that doesn’t mean all of them are. I have long been a proponent of “evidence-based” investing. For many investors, this means investing in a globally diversified portfolio of index funds with low management fees, exchange-traded funds or passively managed mutual funds. In order to make this...

What is the difference between the new issue and the secondary municipal bond market?

Date20 Apr 2015

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Quick Take on Fixed Income April 2015 Q: What is the difference between the new issue and the secondary municipal bond market? A: Essentially, there is little difference between the two markets. Their structure is identical in terms of credit quality, revenue source, price and yield. The new issue realm is the initial offering of...

Comparing DFA Small Value to Vanguard Small Value

Date20 Apr 2015

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Admit Your Investing Mistakes

Date20 Apr 2015

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There are a number of explanations for why many individual investors ignore the overwhelming body of academic evidence and continue to play the loser’s game that is active management. Briefly, three of those reasons are: An education system that has failed the public. Unless an investor obtains an MBA in finance, it’s unlikely that person...

‘Sure Things’ That Didn’t Pan Out

Date13 Apr 2015

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Each January, I put together a list of predictions that financial “gurus” have made for the upcoming year—sort of a consensus of “sure things.” I then keep track of whether or not these “sure thing” predictions have actually come to pass. The turn of the calendar into April means that it’s time for our first...

As Bad A Strategy I Can Think Of

Date13 Apr 2015

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One of my favorite films is “Moonstruck.” It contains a great scene—one I often use when discussing investment strategies I’m asked to review in my role as the director of research for The BAM ALLIANCE, because it makes an excellent and pointed observation. In the scene, Cosmo Castorini, a plumber, explains to a young couple...

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