Blog Archives

Don’t Let Home-Bias Investing Trip You Up

The total U.S. stock market has gained over 20% during the past year and is doing great. But for U.S. investors that are under-weighted to foreign stocks, it’s not so great. Why? Because foreign stocks have convincingly outperformed U.S. equities, thereby causing a performance deficit. What’s the problem?

The tendency of investors to concentrate and tilt their stock and bond holdings toward their home country is referred to as “home-bias investing.”

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Posted in Asia Pacific, Asset Allocation, Europe, Middle East, Africa, Fox Feed, Frontier Markets, Global Economy, Global Real Estate, Investor Behavior & Psychology, Japan, Latin America, NASDAQ Feed, Partner Feeds, Portfolio Management, U.S. Stock Market, Yahoo Feed
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Does Diversifying Damage Performance?

During the 1849 California Gold Rush people sold all their possessions to chase gold (NYSEARCA:IAU). A small minority hit the jackpot, but most did not. Back then, the few people that did get wealthy by not diversifying were the hyper-extreme exception, not the rule. And it’s the same today.

In retrospect,

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Posted in Asset Allocation, diversification, Fox Feed, NASDAQ Feed, Partner Feeds, Portfolio Management, Retirement Planning, Yahoo Feed
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Q&A: How do Foreign ETFs Track their Assets When Markets are Closed?

Q. Trading hours in Asia (NYSEARCA:VPL) and Europe (NYSEARCA:FEZ) don’t coincide with the U.S., so how are ETFs that own foreign securities still able to closely track their indexes even when trading in these securities may be closed?

A. Price discovery is an around the clock 24-hour process and capital markets constantly add information that can change the underlying value of stocks held in ETFs.

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Posted in Fox Feed, Investor Behavior & Psychology, NASDAQ Feed, Partner Feeds, Portfolio Management, Portfolio Report Card, Q&A, Retirement Planning, Yahoo Feed
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Do Regulators Encourage Market Manipulation?

The latest episode of stock market cheating by high-frequency traders (HFT) has set in, yet unanswered questions remain. Do regulators like the Securities and Exchange Commission (SEC) encourage market manipulation?

Manipulation refers to the dishonest activity by individuals or institutions who try to game the price of a stock (NYSEARCA:IVV) or a certain market for their own financial gain.

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Posted in Central Banks, Fox Feed, Fundamental Analysis, Global Economy, NASDAQ Feed, Partner Feeds, Portfolio Management, SEC Market Regulation, Small Cap Stocks, U.S. Stock Market, Yahoo Feed
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