American culture has a deep belief that being average is akin to being a failure. Everybody wants to be above average. Unfortunately, this desire to be above average rarely works out to our advantage in the field of investing. It leads us to such endeavors as stock picking and timing the market, both of which [...]
If you’re looking for some good reading to keep you busy over the weekend, there should be plenty. Investing Neil from Wealth Pilgrim writes a guest post at MoneyNing explaining the why’s and the how’s of portfolio rebalancing. OneMint explains the Uptick Rule. Musings on Markets explains preferred stock and what its presence should mean [...]
I’ve been using ING Direct for my business’s savings account for a little over a year now, and I’m quite pleased with it–sufficiently pleased, in fact, that I thought I’d share my experience with you. (Quick note: My wife and I also use ING for our personal savings account, and each of the statements below [...]
In a comment on last week’s post about the psychological benefits of index funds, Kevin pointed out an article from Motley Fool arguing that the problem with index funds is that they don’t make any attempt to separate good companies from bad companies. And as a result, they end up investing in companies that perform [...]
Back in the early 1970s, investors became enamored with a group of large growth stocks which were dubbed the “Nifty Fifty.” These 50 companies all had a history of steady price appreciation and consistent dividend growth. In fact, their growth was so steady that investors began to refer to them as “one-decision investments,” meaning that [...]
If you’ve done any reading about investing, you know that stock market returns are unpredictable over short periods and predictable over long periods. And you also know that–over long enough periods (however long those may be)–stocks outperform bonds. However, until I started reading Jeremy Siegel’s Stocks for the Long Run, I’d never heard anyone make [...]