Learning Center

Gurus More Right Than Wrong In 3Q

Date26 Oct 2015

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Every January, I put together a list of predictions that financial “gurus” have made for the upcoming year, especially the ones that gain consensus as “sure things.” I then keep track of whether these “sure thing” forecasts actually came to pass, through a series of periodic updates. The inevitable turn of the calendar into October...

Avoid Water Cooler Advice

Date26 Oct 2015

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My book, “Investment Mistakes Even Smart Investors Make and How to Avoid Them,” covered 77 common errors I believe investors commit all too often. I know today there’s at least one more I should have included: discussing individual stock buys or sells at the water cooler. Evidence from the field of psychology emphasizes the strength...

A Wake-Up Call Without the Trauma

Date26 Oct 2015

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Imagine a hypothetical guy who lives a responsible financial life. He’s focused on meeting his obligations, even though he doesn’t have a big cushion when it comes to his take-home pay. Things are tight. He’s not quite living paycheck-to-paycheck, but it’s close. Then one day, an external shock completely outside his control occurs, and it...

Hedge Fund Myths and Misdeeds

Date26 Oct 2015

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If anyone could demonstrate expertise in “beating the market,” you would think it would be hedge fund managers. They get paid hefty fees (often 2 percent of assets under management plus 20 percent of profits) to generate “alpha.” Successful hedge fund managers make obscene amounts of money. The top hedge fund managers earned in excess...

Don’t Call Your Broker

Date26 Oct 2015

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The market has been experiencing gut-wrenching volatility recently. Monday, Aug. 24 was a particularly unsettling day. The Dow Jones Industrial Average (DJIA) lost 1,089 points before rallying to close down 588. This kind of roller coaster ride creates understandable anxiety among investors. Should you sell and sit on the sidelines, waiting for the market to...

Should You Really Be Buying That? How To Decide If A Purchase Is Really Worth It

Date26 Oct 2015

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“It was totally worth it.” In this case, “it” referred to a Vitamix blender that a friend recently had purchased. He wasn’t the first. Indeed, I don’t know anyone who has purchased a Vitamix blender and didn’t share my friend’s effusive sentiment, even after spending between $429 and $719 (for the new line of G-Series...

How to find a financial advisor

Date26 Oct 2015

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Looking to avail yourself of a financial advisor’s services but stumped as to how to pick one? Who better to tell you what to look for than a financial advisor himself? “I believe there are four minimum requirements for anyone you’re considering working with,” said Tim Maurer, certified financial planner and director of personal finance...

No Shockers From Midyear SPIVA

Date12 Oct 2015

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The midyear S&P Indices Versus Active (SPIVA) domestic scorecard provides another example of why (at least when it comes to the overall results of active management relative to appropriate benchmarks) the past is, in fact, prologue. Let’s review some of the highlights from the June 2015 scorecard. The table below shows the percentage of active...

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