Stock Picking: A Cinderella Story
The NCAA Basketball “March Madness” Tournament offers plenty of investment parallels. After the entries are submitted and the tournament is completed, a winner is crowned. Does the “winner” […]
Eugene Fama Wins Nobel Prize
In the 1960’s, Professor Eugene Fama of the University of Chicago coined the term “efficient market” to describe a world in which no investor can consistently beat the market without […]
Bond Funds: Is Active Better if Rates Rise?
Many investors assume actively managed bond funds outperform bond index funds when interest rates rise. On the contrary, the majority of active funds fail to beat their benchmarks in […]
“Don’t just do something; Sit there!”
Once again, data from USA TODAY and online portfolio tracker SigFig shows active traders dramatically underperform those with a buy-and-hold approach.
Steer Clear of Bonds?
Everyone knows interest rates have nowhere to go but up. It is only logical to avoid the inevitable “bond crash” by selling now, right? Not so fast.
Patience, Not Timing
Successful long-term investing is a function of persistence and patience, not timing. A well-diversified portfolio can withstand market cycles and deliver solid, long-term returns without subjecting the investor to […]
The Fairy Tale of Active Management
Why—in the face of such overwhelming evidence to the contrary—do investors and managers continue to believe they can ‘outperform’ markets? Two words: Fees and Overconfidence. The latter […]
Warning: Market Predictions Ahead
It’s that time of year again. A fresh batch of “Where to Invest in 2013” publications are in full circulation. Since we know these market guides won’t ever come with […]
Vanguard Index Changes
Vanguard recently announced they will be changing the index benchmarks tracked by several of their exchange-traded funds (ETFs). The changes, which will occur gradually, are being made to reduce internal […]
Activity Equals Value? Try Again.
While the conventional wisdom suggests a “don’t just sit there, do something” approach to investing, nothing could be further from the truth. New data from USA TODAY and online portfolio […]
What Facebook’s New Millionaires Should Learn From Google
Facebook’s looming initial public offering will mint a new generation of Silicon Valley millionaires on a level not seen since 2004, when Google went public. In this Portland Business […]
Active Management in 2011: Salt in the Wounds
Contrary to one market pundit’s prediction that 2011 would be an “easy year for stock pickers,” last year turned out to be pretty tough for active managers. Fully 84% […]
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