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There are many other variations on these themes. The point is, indexes using different weightings can reach significantly different conclusions about the performance of the same market slice.
Think of index points as being like thermometer degrees. Most of us can’t explain exactly how a degree is calculated, but we know hot from cold. We also know that Fahrenheit and Celsius both tell us what the temperature is, in different ways.
Early on, indexes were designed to offer a rough idea of how a market segment and its underlying economy were faring.
We have just experienced the third-best first half, in terms of U.S. market returns, of the 2000s.
US market returns and a variety of interest rates and found the empirical relation has been weak and noisy.
Friday, June 9 quietly marked an historic day in the financial services world. On that date, all financial advisors will be required to forego any sales agenda and give advice that would be in the best interest of their clients or customers—or, if they …
Monthly statements can be difficult to read. Short term performance reports of three months or a year may not be helpful.
I believe it is very difficult, if not impossible to predict the future, certainly over the long run. And, it’s much less possible to make a profit from guessing the future.
King Solomon recommended dividing our investments into “seven, or even to eight” ventures (diversification). Because we do not know what misfortune may occur on the earth.
Roger Gibson, the author of the must read book “Asset Allocation: Balancing Financial Risk,” shows that including some portion of commodities in your portfolio of well diversified equity, bonds, and real estate produces better compound average returns–higher, risk-adjusted returns.
I always enjoy Weston Wellington’s look at what the press has to say about the markets. His articles for Dimensional Fund Advisors are usually lighthearted and very easy to read. In his “A_Look_Back_at_2016_US” article, he reminds us that not many knew …
I was recently asked what tips I have for investors in their 20s. So, this is for those of you in your 20s. Save early, save often is one of my mantras. College graduate or not, beginning the savings and investing habit is important. Given the effect o …