Learning Center

Fearing a bubble? Five worst investing mistakes

Date24 Nov 2014

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Every market pundit has an opinion on whether the market is now at or near a bubble. And after the recent bout of volatility, triggered by a resurgent and scary narrative about a “slowing global economy,” investors who have been in on the six-year bull market run would be right to question the profits they...

Don’t Sell In May; Don’t Go Away

Date24 Nov 2014

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One of the more persistent investment myths holds that a winning strategy is to sell stocks in May and wait to buy back into the market until November. While it is true that stocks have provided greater returns from November through April than they have from May through October, the equity risk premium has still...

Beware Stars Of Investment Balls

Date10 Nov 2014

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Let’s define “popular” as being liked or admired by the general public. One might reasonably think that popularity is a good thing, right? But when it comes to investing, research shows popularity often comes with lower returns. This correlation can sometimes result in a conflict with traditional economic theory, where risk and expected return should...

Understanding Muni Bond Spreads

Date10 Nov 2014

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The municipal bond market has almost $4 trillion in total debt outstanding. That compares with about $18 trillion in outstanding U.S. Treasury debt. Besides market size, municipal bonds differ from Treasurys in that they carry credit risk, are less liquid and are exempt from federal income tax. The size of the spread between Treasury bonds...

Don’t Balance Money and Life, Integrate Them

Date10 Nov 2014

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We got the subtitle of my last book wrong. It reads, “Balancing Money and Life.” And while the book is still substantively solid and its aging content remains mostly relevant, the subtitle, I now believe, is a misnomer. It may actually contradict the book’s fundamental message. Whether we’re talking about money and life, work and...

The Good, The Bad and The Ugly of Investments

Date10 Nov 2014

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The securities industry has a vested interest in making investments complicated and opaque. Confusion, obfuscation, fear and anxiety are often the basic tools of its trade. While purportedly “market-beating” brokers and advisors tend to profit handsomely in all market conditions, the performance of the typical investor over the past 20 years has been accurately described...

What are TIPS and how do they work?

Date10 Nov 2014

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Q: What are TIPS and how do they work? A: Similar to nominal (non-inflation-adjusted) U.S. Treasury fixed income investments, TIPS are issued with fixed coupon rates and fixed maturity dates (such as five, 10 or 20 years). The key difference between TIPS and nominal bonds is that the coupon rate for TIPS is a guaranteed...

Ways to Increase Your Wealth When Your Income Is Flat

Date10 Nov 2014

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Income inequality can arise from a number of things, like gender, race, social class and education. We know it’s an issue. But the most recent recession revealed what may be an even bigger problem: wealth inequality. When we talk about wealth, we’re referring to everything you can claim as an asset, including savings accounts, your...

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