Despite passive investing’s incredible recent growth, there are several reasons we’re not concerned with indexing becoming too popular.
Shares of Amazon have soared 49,000% since the company went public. Finding the next Amazon may be the goal of many investors. Yet just a tiny handful of stocks are responsible for most of the stock market’s historical gain. Diversification is the only way to ensure such “superstocks” are in your portfolio.
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
The endowment performance of tiny Houghton College recently outpaced that of Harvard, which boasts the largest university endowment in the country. How did Houghton do it? By avoiding hedge funds and exotic alternatives, and instead embracing low-cost index funds.
‘Tis the season for year-end mutual fund distributions. A quick review of how these work can help those who keep a close eye on their stockings from being caught by surprise.
Financial pundits are busy offering promises of how next Tuesday’s Presidential election will impact markets. The truth is, no one knows exactly how the result will affect portfolios. Fortunately, long-term investors shouldn’t be too worried.