Investors are always looking to find the next Amazon, but is trying find the next “superstock” worthwhile? New research from Professor Hendrik Bessembinder shows that most U.S. stocks don’t beat Treasury Bonds and that searching for the next superstock is likely to end in disappointment. To capture top performers and harness stocks’ power for growth, diversification is key.
Uncertainty is a constant in investing. Rather than hope for portfolio gymnastics to deal with unforeseen events, sensible investors rely on diversification and discipline. In so doing, they distinguish themselves from speculators and, we’d argue, not only enjoy a higher probability of success but a better quality of life, as well.
It’s been 25 years since Professors Eugene Fama and Ken French explained why investors were likely, but not guaranteed, to earn better returns by favoring small cap and value stocks. Results since then have validated the researchers’ conclusions, but capturing those higher returns hasn’t always been easy.
Given multiple changes to federal estate tax laws over the past decade, many high-net worth individuals are suffering from estate planning fatigue. Despite the uncertain tax environment, however, estate planning still matters. Here’s why.
Market-timing investors’ efforts to outguess the random day-to-day variations in the stock market hurts their performance. They’d have better results if they behaved like rats.
Investors have many reasons to despise international stocks today. Chiefly among them is performance: they’ve underperformed large cap U.S. stocks by 7% per year since 2008. Despite international