Discipline and diversification vs. prediction and timing. Which strategy yields the best results?
We recommend reading this article by Weston Wellington at Dimensional Fund Advisors, Nine Experts, Four Surprises, and One Million Dollar Bet. In it, he takes us …
A recent study on money and happiness brought disappointing news for those hoping that having more of the former will guarantee them more of the latter.
Researchers asked more than 4,000 millionaires of different levels of wealth to say how …
Have you caught cryptocurrency fever, or are you at least wondering what it’s all about? Odds are, you hadn’t even heard the term until recently. Now, it seems as if everybody and their cousin are getting in on it.
Psychologists …
In the world of investment management, there is an oft-discussed idea that blindfolded monkeys throwing darts at pages of stock listings can select portfolios that will do just as well, if not better, than both the market and the average …
As we move farther and farther out from the disclosure of the Equifax security breach, I have heard from many of you, that you, rightly, remain very concerned about what will happen next. I firmly believe that it is not …
While the Equifax security breach only recently became public knowledge on September 8, in many ways, it was a lifetime ago. We were already on high alert for instances of identity theft. But the source, scope, and what seems like …
Next month, Americans will head to the polls to elect the next president of the United States. While the outcome is unknown, one thing is for certain: There will be a steady stream of opinions from pundits and prognosticators about …
When news breaks and markets move, content-starved media often invite talking heads to muse on the repercussions. Knowing the difference between this speculative opinion and actual facts can help investors stay disciplined during purported “crises.”
At the end of June …
The Chinese equity market started the year with a sharp decline in prices and then continued to experience volatility throughout January. News articles about China have appeared almost daily, speculating on the market volatility, the currency, government attempts to intervene …
WHAT HAS BEEN THE HISTORICAL RELATION BETWEEN OIL PRICES AND THE EQUITY MARKET?
For 1986–2015, the monthly correlation of the crude oil spot return with US stocks (represented by the CRSP 1–10 Index) was 0.02. The corresponding correlation with the …
WE SHOULD EXPECT VOLATILITY
It is important to remember how well-functioning capital markets work and what prices reflect; prices reflect the aggregate expectations of market participants. Risk aversion, investors’ tastes and preferences, and expectations about future profits are among the …
The New Year is a customary time to speculate. In a digital age, when past forecasts are available online, market and media professionals find it harder to hide their blushes when their financial predictions go awry. But there are ways …
Global markets are providing investors a rough ride at the moment, as the focus turns to China’s economic outlook. But while falling markets can be worrisome, maintaining a longer‑term perspective makes the volatility easier to handle.
Click the following …
Stock prices in markets around the world fluctuated dramatically for the week ended August 27. On Monday, August 24, the Dow Jones Industrial Average fell 1,089 points—a larger loss than the “Flash Crash” in May 2010—before rallying to close down …
Why don’t the media run more good news? One view is bad news sells. If people preferred good news, the media would supply it. But markets don’t see news as necessarily good or bad, rather in terms of what is …
Most of us have multiple roles—as business owners, professionals, workers, consumers, citizens, students, parents and investors. So our views of the world can differ according to whatever hat we’re wearing at any one time.
This complexity of people and their …