CBS News

How the mutual fund graveyard can hurt investors

The tendency for mutual fund companies to drop poorly performing funds when calculating historical return data is a major problem for unsuspecting investors, and it’s known as survivorship bias. An investor selecting mutual funds today is choosing from a list that excludes the losers that have been either closed or merged out of existence so …Read More.

Are You Too Conservative With Your Investments

Investors’ behavior can be heavily influenced by their experiences. For example, the financial crash of 1929 and the ensuing Great Depression permanently shattered many investors’ belief in buying stocks. A whole cohort of potential investors stayed away from equities for a very long time, if not permanently. Similarly, the “lost decade” of 2000-2009, when the …Read More.

Are you too conservative with your investments?

Investors’ behavior can be heavily influenced by their experiences. For example, the financial crash of 1929 and the ensuing Great Depression permanently shattered many investors’ belief in buying stocks. A whole cohort of potential investors stayed away from equities for a very long time, if not permanently. Similarly, the “lost decade” of 2000-2009, when the …Read More.

Don’t Be a Member of the Hedge Fund Club

2013 was another great year for the global hedge fund industry. Net inflows were almost $64 billion and total assets reaching $2.63 trillion. Unfortunately, investors in hedge funds haven’t fared as well as the purveyors. Thus, we have one of the more puzzling anomalies in finance — the continued growth of an industry that for …Read More.

Study Puts Another Nail in Active Management’s Coffin

An ongoing debate among investors is whether an active or passive strategy is most likely to give you the best results. Twice a year, Standard & Poor’s releases their active vs passive score card (officially called the S&P Indices Versus Active Fund report, or SPIVA for short.) The analysis compares actively managed funds against S&P index benchmarks, …Read More.

Asset Allocation Guide: Value vs. growth

The asset allocation process is somewhat like a Russian nesting doll. What appears as a sole, simple object actually comprises a great deal. Like each doll, one after the next, a portfolio consists of detailed, intricate workings. We’ve already seen this in earlier articles in our asset allocation series, where we covered some essentials, namely, …Read More.

Asset Allocation Guide: Small-cap vs. large-cap

We’re getting closer to the finish line in our series of articles concerning asset allocation. So far, we’ve covered how to analyze your ability, willingness and needto take risk — and what do when one or more of those factors conflict. Then we moved to the equity portion of your portfolio, starting with a discussion aboutdomestic vs. international stocks. Then …Read More.

Asset Allocation Guide: U.S. vs. International Equity

In our ongoing series looking at asset allocation issues, we’ve already covered some essentials, namely, how to analyze your ability, willingness and need to take risk — and what do when one or more of those factors conflict. Figuring out where you fit along the risk spectrum will help you figure how much of your portfolio to put into stocks. Now, …Read More.

Asset Allocation Guide: How much risk do you need?

The first two posts in our series on asset allocation focused on investors’ ability and willingness to take risk. Today, we turn our attention to the third of our three tests, the need to take risk. The need to take risk is determined by the rate of return required to achieve financial objectives. The greater the rate of return …Read More.


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