The phrase "past performance is not an indicator of future performance" is a frequently written and spoken legal disclaimer for virtually all investments sold by Wall Street. Yet, hardly anyone from individual investors all the way to investment sales people really act like they believe... Read More
Do stock market correlations matter?
Statisticians use correlations (or cross-correlation) to measure the relationship between asset classes or investments. The general idea is to better understand the similarity or dissimilarity in how investments perform against each other and to build a... Read More
Never mind the abysmal results of first quarter earnings for the depressed energy sector. It doesn't matter.
And never mind the conventional wisdom of group-think and scary analyst warnings like, "Energy stocks are in deep trouble because Q1 losses will mark the first time any sector in the... Read More
SunEdison now joins the endless parade of defunct stock market ex-darlings like Enron, eToys, IndyMac, and Washington Mutual. Yes, the circumstances are different, but the results are the same: bankruptcy.
Once the largest renewable energy developer in the U.S., the Missouri-based... Read More
Over the past several years there's been a lot of derogatory talk against traditional market cap weighted indexes.
And one of the oft-repeated arguments against traditional indexing that you're guaranteed to read about or see is something like, "Market cap weighted indexes overweight... Read More
Years ago John Bogle once quipped, "If the data do not prove that indexing wins, well, the data are wrong. ” Here's the latest: There's no need to second guess Bogle on this particular matter because a) the data proves indexing wins, and b) the data is completely right.
The table below shows... Read More
The ho-hum utilities sector is the antithesis of popular stocks like Netflix (NasdaqGS:NFLX) and Tesla (NasdaqGS:TSLA). It's a hyper un-sexy industry sector that's been long associated with widows and orphans, rather than hotshot entrepreneurs who like to build rocket ships in the office parking... Read More
Wall Street's remedy for fixing whatever problems that afflict your investment portfolio is simple: "Save more money."
And if you happen to be among the godforsaken group that always manages to have unsatisfactory investment results, regardless of whether the pesky stock market is up or down,... Read More
Has your financial advisor contacted you lately? Although global stock markets (NYSEARCA:VT) have recovered from their earlier in the year losses, it could've revealed flaws with your investment portfolio's design. Often, flaws that are camouflaged by rising markets are exposed and exploited in... Read More
Contrarian investing takes gumption. Not only are you buying assets that are hated by most investors, but you're doing it at prices that are depressed. It's a scary proposition for many people and because it requires such nerves of steel, most don't do it. Add it to the checklist of reasons... Read More