I provide four approaches to objectively evaluate the U.S. stock market. My insights could surprise you. Consider yourself warned. Click here for the full story!
Value Investing is the time-tested approach to simply evaluating the stock market and choosing the best individual stocks to invest in. Value investing relies upon strong underlying fundamentals that set the stock apart from the rest of the… Read More »What is value investing in the stock market?
I hope you enjoyed your time at the beach! Have you rebalanced your porfolio yet? Check out Seeking Alpha or here if you are interested in reading a nonparametric study on U.S. industry sectors and their… Read More »Rebalancing for 2015: Which Industry Sectors to watch out for?
Merry Christmas all. I just wrote a timely critical look at the leaders in toy industry as I look for the stock market’s 2015 best value stocks to invest in. My analysis compares Mattel and… Read More »Is Mattel, Inc. one of the stock market’s 2015 best value stocks to invest in?
Someone came across my blog and asked me this very question about market timing. I tried to do my best to answer it. Let me know your thoughts and comments: From a total market standpoint,… Read More »Is the US Stock Market Value at its Peak?
The median expense ratios for all U.S. equity and bond funds have been declining steadily since the inception of (and growing popularity of) index funds. According to analysis provided by ICI, median expense ratios have continually trended lower since 2000 (see Chart 1). The median expense ratios for index bond funds and index equity funds are 0.11% and 0.12% respectively. Interestingly, bond index funds have expense ratios that are still 50 basis points below the expense ratio for actively managed bond funds. Stock index funds have expense ratios 75 basis Read More »The Significance of Fund Expense Ratios
Return on investment has varied dramatically across asset classes. Cumulative total return on investment of $1.00 in stocks have outperformed those for gold by over $480K in the 206 year period from 1802 to 2008!… Read More »Return on Investment for Various Assets
Stating the obvious sometimes seems unnecessary. Yet, people are willingly buying into the fad of ever more specific ETFs being created in seemingly every permutation of underlying asset classes which now unfortunately includes commodities. If… Read More »Never Invest in the Commodity Market
Understanding the basics of asset management is a necessity to building personal wealth. Individual investors can make irrational and costly decisions that otherwise could have been avoided. Too often, people are able to prudently save excess cash to invest, but having no experience or interest in making an educated decision, they end up making foolish mistakes. Below is a list of the most common mistakes:
- Holding too much cash.
The first mistake is remaining too risk averse and never building a portfolio at all. While it is strongly recommended to create an emergency fund in addition to having liquidity available for expenditures, at some point you need to put your excess cash to work and begin asset management. Prudent budgeting should help you determine how much to hold in reserve and when to look into assets with higher rates of return.Read More »Common Mistakes in Asset Management