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Monthly Archives: June 2011
Your Broker Can Aid in the War Against Terrorism
The Associated Press reports that an al-Qaida member lost over $20 million by investing with a Chicago futures brokerage firm. The losses were incurred over just 8 months. The investor, who is alleged to be a recruiter for al-Qaida, invested … Continue reading
Posted in 401(k) Retirement
Tagged Dan Solin, huffington post, investing
IFA Radio’s Episode 78
“Where is the smart money being invested? Where can I invest my money and get nice, juicy 20% returns?” These are the burning questions so many investors lob at the experts day after day. Unfortunately, an investment with a 20% … Continue reading
Posted in investing
IFA Radio’s Episode 77
Each day, we hear the question: “Is the market going up, or is the market going down.” There is no known direction of where the market is heading, and past movements have no bearing on future movement. Prices constantly change … Continue reading
Posted in investing
Don’t just do something—SIT there.
Most people feel an overwhelming need to do something when they see the market going one way or the other. Unfortunately, most of these same people act on these impulses which runs contrary to the history of stock market returns. … Continue reading
Posted in investing
Q&A: Why Use Book Value to Sort Stocks?
Q: Data from Ken French’s website shows that sorting stocks on E/P or CF/P data produces a bigger spread than BtM over the last 55 years. Wouldn’t it make sense to use these other factors in addition to BtM to distinguish … Continue reading
Posted in investing
Tagged Dimensional, Eugene F. Fama, Kenneth R. French
Cognitive Biases and Their Impact on Investment Decision-Making
Why is it that individual investors utterly fail to capture the returns of the market? For example, The DALBAR study shows an astonishing five point gap between the return received by the average equity investor and the S&P 500. Over … Continue reading
Posted in investing
Stock Pickers Are Picking Your Pockets
The top three ranked tennis players in the world are Rafael Nadal, Novak Djokovic and Roger Federer. This is no small achievement. The rankings are done based on a complex system that requires them to compete in a number of … Continue reading
Posted in 401(k) Retirement, index funds, investing
Tagged Dan Solin, huffington post, investing
Planning for Retirement? Take Off Those Rose-Colored Glasses!
A recent article in the Wall Street Journal shows that the impending problem of people not having the financial resources that they will need to support themselves in retirement will perhaps be worse than anticipated. The problem is that … Continue reading
Posted in investing
Q&A: Cap Weighting or GDP Weighting?
Q: What is the merit, if any, in using a country weighting scheme based on Gross Domestic Product (GDP) rather than market capitalization? A: EFF/KRF: There are none that we can see. Investors as a whole can’t follow this strategy since … Continue reading
Posted in investing
Tagged Dimensional, Eugene F. Fama, Kenneth R. French
Coping With The Bogeyman Of A Market Crash
Correction: In my blog, I referred — and hyperlinked — to an article in Forbes, which referenced a commentary by PIMCO CEO Mohamed El-Erian about Meredith Whitney. The author of the Forbes article has now published a correction and apology … Continue reading
Posted in 401(k) Retirement
Tagged Dan Solin, huffington post, investing
