Investment Analyst, Adviser and Author
Rick Ferri has done investors a great favor by collecting in one place the consistently overwhelming evidence that index funds keep beating active funds. The only remaining problem for ‘passive’ investing is the name. Why don’t we all agree on a single change and call indexing success investing?
-Charles D. Ellis on “The Power of Passive Investing”
Mutual fund rating services divide mutual funds into categories based on their investment style. This helps investors compare the performance of one style to another and helps them compare the performance of individual funds in a particular style. While useful in many ways, this methodology can also create the illusion of superior performance when none [...]
“Ignorance is bliss,” or so the saying goes. Unfortunately, as it applies to Wall Street, that bliss is more likely to go to those preying on investors’ ignorance than by those who remain financially naïve. That’s why it’s so important for investors to arm themselves with understanding, at least of the financial basics. For example, here’s one [...]
The Feds may or may not raise interest rates again in 2018. Europe's economy may or may not recover anytime soon. A correction may come that causes some investors to panic and others to benefit from the dip. It’s business as usual in the markets, with the usual mixed messages tempting individual investors into trying [...]
Investment discipline isn’t easy. Despite best intentions and claims to the contrary, many investors chase performance, react emotionally to market moods, and generally incur far more trading costs than good discipline would suggest. Even when there is a long-term plan in place, if it’s not followed, the plan is useless. Over the years, I’ve seen [...]