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Michael Lewis' new book "Flash Boys" has a lot...

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The emerging markets have had a rough year...

The U.S. continues its mid-cycle trend.

Timeless wisdom.

It’s hard to keep count of all of the studies that show how humans make very poor, money-losing investment decisions. In a new post for Credit Suisse’s website, strategist Michael Mauboussin explains some of why this is so. “One behaviour of investors that is well documented is the tendency to […]

Don't let last year's results lure you.

Earlier this week, Warren Buffett gave Fortune Magazine an exclusive clip of his annual letter to Berkshire Hathaway shareholders. The excerpt included “fundamentals of investing” that Buffett had identified. Fortune had these five bullets (emphasis added): You don’t need to be an expert in order to achieve satisfactory investment returns. […]

Warren Buffett’s 2013 annual letter to Berkshire Hathaway shareholders is out. Q4 financial results are out. Berkshire reported operating earnings of $US2,297 per share, beating estimates calling for $US2,204 per share. Berkshire’s book value grew by a respectable 18.2% in 2013. Unfortunately, it was one of the rare years Berkshire’s […]

The stock market crash of 2008 has for many years caused an aversion to stocks among retail investors, but they may finally be coming back after a 188% run-up from the March 2009 lows. Daily average revenue trades (DARTs) at leading online brokerage E*TRADE have been trending up since bottoming […]

This is part of the “Life Plan” series, which covers how you should be planning for life’s big moments. “Life Plan” is sponsored by Lincoln Financial Group. More in the series » While the dream of home ownership may have taken a beating during the recent recession, a majority of […]

GMO’s Jeremy Grantham is a legend in the investing world thanks to his extensive work on bubbles and his ability to see financial crises. More recently, however, his bearish slant has made him the target of criticism as the stock market has surged to record highs. But don’t expect Grantham […]

For the first time ever, married same-sex couples will be required to file federal income taxes as married, either jointly or separately, and will have the opportunity to amend their last three returns using a married filing status. For some unions, this could mean a nice refund. After the Supreme […]

From his annual letter to shareholders.

Gone are the days when a hedge fund could go long the market, lever up to its eyeballs and watch the money roll in (at least for now). According to a report from research firm Prequin, hedge funds got spanked in January, returning an average -0.17% for the month. The […]

The most basic measure of stock market value is the price-earnings multiple. To calculate it, you take the price and then divide it by the earnings, which is arguably the most important driver of stock prices. Over long-run, this market multiple has a tendency to revert to its mean. But […]

This chart presents something of a paradox: it shows that the correlation between a country’s stock market returns and the same country’s growth in per-capita GDP is actually negative. The findings may be counterintuitive, as one would expect countries with higher rates of economic growth to produce superior investment returns. […]

This is part of the “Life Plan” series, which covers how you should be planning for life’s big moments. “Life Plan” is sponsored by Lincoln Financial Group. More in the series » Newly engaged couples spend a lot of time dreaming about the future — how many kids they’ll have, […]

The slide below comes from BofA Merrill Lynch chief investment strategist Michael Hartnett’s latest note:

When it comes to compensation, British bank Barclays gets mixed reviews. Its CEO, Antony Jenkins, has given up his bonus because of the bank’s weak performance and legal issues. At the same time, the Barclays is laying off some employees while boosting compensation for others, and some critics of Wall […]

He died one of the richest economists ever.

Amid the recent emerging-market turmoil, Russia’s economy is under scrutiny once again. The ruble is down 5.5% year-to-date against the greenback. Experts warn the economy is too reliant on its natural-resource exports (i.e. oil and natural gas) and that it is showing symptoms of the Dutch disease. Dutch disease is […]

As much as we want to act rationally, our investment decisions are unfortunately impacted by our behavioural biases. In other words, our brains are working against us. Veteran market strategists Jeff Saut and Richard Russell note that the biases of wealthy investors differ from the biases of not-so-wealthy investors. And […]

The S&P 500 will climb to 1,900, according to Birinyi.

Investing in the stock market can be extremely frustrating for those who look back on the big rally they missed and nerve-wracking for those who believe the may be putting money into the market at the top. The S&P 500 has roared 177% from its March 9, 2009 low of […]

GMO’s Jeremy Grantham just put out his latest quarterly newsletter to GMO clients. And in it he has some high praise for Tesla. In a section titled “Fossil Fuels: Is Tesla a Tease or a Triumph?” he writes that he recently took a drive in a Tesla and it was […]

In his February investment letter, Bill Gross, the manager of the biggest bond fund around at PIMCO, warns investors to “be careful.” A combination of smaller government deficits and tapering of the Federal Reserve’s quantitative easing program could be bad news for credit expansion, which Gross argues is bad news […]

Investing is complicated, and it may seem easy to hand your financial future over to an advisor and wipe your hands of it. But that’s a mistake. Even if you have an advisor, it’s incredibly important to understand the state of your own finances. Believe it or not, the advisor […]

Coming up with a personal investment strategy can be overwhelming. That’s why it’s important to understand the basics of the equation. Whether you have a financial advisor, get help from your friends and family, or are your own consultant, there are three key questions you need to ask before creating […]

2013 was a really terrible year for commodities, as flagging demand worldwide ate into prices. Just four major commodities – natural gas, oil, palladium and, barely, zinc saw year-over-year price gains, according to the “commodities quilt” below from U.S. Funds. Growth in the top performer, natgas, which climbed 33%, diverged […]

It is wildly difficult to beat the stock market in any given year. Most fund managers who try to beat the market fail. And most of the time, it’s before fees are considered, which means the money investors take home is far less. Even Warren Buffett knows he can’t beat […]

After the U.S. housing market crashed and the economy spiraled into financial crisis, there were a lot of economists and analysts who warned that the massive “shadow inventory” of homes would keep prices depressed for an extended period of time. The “shadow inventory” consists of homes that were seriously delinquent […]

Peter Lynch made a name for himself when he turned Fidelity Investments’ tiny Magellan Fund into one of the biggest and most dominant equity mutual funds in history. He quickly became very popular among retail investors. And his book, “One Up on Wall Street: How to Use What You Already […]

Maybe Millennials aren’t as self-indulged and frivolous a generation as everyone seems to think. According to a new report from investment banking company UBS, Millennials are the most financially conservative generation to come around since the Great Depression. The report, which focused on investors between the ages of 21 and […]

Dylan Grice is leaving Edelweiss Holdings to join Aeris Capital, a private investment office, in Zurich. Aeris Capital manages assets for a European family and its charity. Grice told Business Insider that he will be setting up his own capital preservation/value fund within Aeris. He will also “help manage their […]

Last week was pretty ugly for global stock markets, and closed in the red again on Monday. The responsibility for that misery was placed squarely on the shoulders of emerging markets. Currencies in emerging market nations like Turkey, South Africa, and Argentina have taken a beating. But BlackRock’s Russ Koesterich […]

The Turkish lira got a nice bounce today after the Central Bank of Turkey announced that it will hold an emergency meeting tomorrow. The expectations are that the central bank will announce a rate hike to stem the decline.. The currency has taken a beating on a corruption scandal threatening […]

For most finance novices, the language of mutual funds can be a mix of daunting, impressive, and suspicious. Every style of mutual fund offers something a bit different. But their explanations are often lacking and confusing. Enter Josh Brown, aka The Reformed Broker, with his mutual fund brochure decoder. In […]

Warren Buffett’s Berkshire Hathaway and Dan Gilbert’s Quicken Loansare partneringto award anyone who fills out a perfect 2014 Men’s NCAA Tournament bracket with $US1 billion. The prize will be paid out in 40 annual installments of $US25 million. If there’s more than one winner they’ll have to share. The winner […]

This post is part of the “Think Global” series, exploring the next big investment frontiers for investors and financial advisors. “Think Global” is sponsored by OppenheimerFunds®. Read more in the series » The world is rapidly changing, and investors would be well-advised to position their portfolios for key long-term themes. […]

Jeffrey Gundlach has basically gone full contrarian for 2014. In a webcast earlier today, the bond fund veteran expressed views that are effectively the opposite of what the consensus expects. Wall Street sees healthy gains for the S&P 500, but Gundlach expects volatility as the Federal Reserve tapers its extraordinary […]

Whether the house belonged to your deceased parents or Uncle Morty, dealing with inherited real estate can be both emotionally and financially complicated. For one thing, inherited property often comes with a variety of state and federal taxes that, depending on the circumstances of the property and homeowner, can end […]

'A more cyclical portfolio orientation is appropriate for 2014.'

Nuveen Asset Management’s Bob Doll recently unveiled his 10 predictions for 2014. And today, he’s sharing with us a way to invest based on that framework. It comes via the Nuveen 2014 Equity Outlook Portfolio. From the description: The portfolio will be designed by professionals at Nuveen Asset Management (Nuveen), […]

Bumpy recovery.

One of the more anticipated annual lists of market predictions comes from Nuveen Asset Management’s Bob Doll, the veteran investment strategist who previously held top posts at BlackRock and Merrill Lynch. As usual, Doll sees stocks rising this year. But he expects the ride to be much bumpier than it […]

During a presentation earlier today, Nuveen’s Bob Doll showed this disturbing chart that we’ve seen before. It shows the annualized returns of various asset classes over the 20 year period ending 2011. It also includes inflation during that time. It also includes the average investor’s investment returns, which are lower […]

During a presentation this morning, Nuveen’s chief equity strategist Bob Doll offered his longer-term forecasts alongside his predictions for 2014. Here are his five long-term themes: Economic power and financial wealth continue to shift from developed to emerging world (although cyclical issues have interrupted this) Emerging market consumers set the […]

Earlier today, Nuveen’s Bob Doll explained how he came to his 10 predictions for the markets in 2014. Regarding stocks, he thinks it should be another up-year for the market. “On the back of very strong equity market performance in 2013, it is hard to conclude that equities haven’t “stolen” […]

Borrowers were making rational decisions.

Everyone calm down.

Six days into the new year, RBC’s Jonathan Golub has become the second Wall Street strategist to boost his 2014 price target for the S&P 500 index. The reason: stocks have risen quickly since the FOMC’s December 18 decision to begin winding down the Federal Reserve’s quantitative easing program, causing […]

It’s not how much you make, but what you do with the money you have that counts. Morgan Housel, a senior analyst at financial services company The Motley Fool, made just this point in a recent newsletter on the basic tenets of successful investing. One of his golden rules: Most […]

Goldman Sachs looks at 40 stock picks for the new year.

We wrapped up 2013 the U.S. stock markets closing at an all-time high after booking a 30% return for the year. Gold had it’s worst year in decades and the 20+ year bull market in bonds showed signs of ending. This all came with the Federal Reserve tapering back its […]

The S&P 500 out-returned Berkshire over the past five years.

An average call of 1,955 for the S&P 500.

If you’re not as wealthy or financially secure as you’d hoped to be at this point, what’s holding you back from your money goals? Chances are, it’s you. In new book “Financially Fearless: The LearnVest Program for Taking Control of Your Money,” Alexa von Tobel, the founder and CEO of […]

Barry Ritholtz, the brains behind the Big Picture blog, is out with his 2014 global market and economic forecasts, and they are brilliant. From his U.S. forecasts: Category Forecast Dow Jones Industrials No idea S&P500 WTF are you asking me for? 10 Year Bond Could not fathom a guess Fed […]

2013 was a rough year for the emerging markets. When Federal Reserve Chairman Ben Bernanke first hinted in May that the Fed would soon begin tapering its stimulative quantitative easing program, many of the emerging markets got slammed with stocks, bonds, and currencies losing value precipitously. However, the turmoil in […]

Chinese interest rates have been spiking again. After a credit crunch in June, we saw seven-day repurchase rates surge to 8.94% on Monday, though at one point this went up to 10%. This was the highest level since it hit 9.29% during the run up in rates in June. But […]

The S&P 500 is heading for returns of between 25% and 30% for 2013. Exceptional? Not totally. LPL Financial ‘s Jeff Kleintop has compiled the historic frequency of stock returns on the S&P 500 since 1927. It turns out that 25%-30% gains range is not terribly rare: there have been […]

The Wall Street Journal recently wrote about a young couple that has a combined $US100,000 in debt and is struggling to get out from under it. Austin and Sarah Carne, ages 33 and 29, live in Reno, Nev., and have three young children. He’s a medical supply sales rep making […]

Gold has had a nice run up for over a decade now, but it has taken a beating this year. The yellow metal is currently trading at three-year lows. We reached out to commodities expert Jim Rogers for his take on what will happen next in the gold markets. Business […]

If you’re considering buying a house or taking out a loan next year, you’ll want to get your credit rating in the best possible shape. But what’s the best way to approach it? In a Reddit “Ask Me Anything” thread posted earlier this year, an advisor from a major credit […]

The United States is home to more millionaires than any other country. According to one recent report, there are 5,220,000 millionaire households in the U.S. — almost five times the number in China and 10 times the number in the U.K. So while it’s rare, it’s not impossible to break […]

Credit Suisse's Michael Mauboussin explains.

The latest Barron’s cover looks super bullish. It says that its top strategists expect stocks to rise 10% in 2014 on top of the extraordinary gains of 2013. But drowned out by the bullishness, was an interview with Ned Davis, founder of Ned Davis Research, and strategists Timothy Hayes Lance […]

The best large cap stocks from David Bianco.

One reason why stock market trading volumes have trended higher is because the cost of trading has come down sharply. Deustche Bank’s David Bianco included this chart in his 2014 outlook for the stock market. “Transaction costs related to owning large cap stocks have plummeted in the past few decades […]

Some market-watchers believe that a bullish Barron’s cover is a contrarian indicator. In other words, if it’s an optimistic cover, then investors should be worried. Unfortunately, this rule hasn’t worked during this rally. (see here, here, here, here, here, here, and here). Having said all of that, the story is […]

For the most part, Wall Street’s interest rate strategist expect interest rates to rise in 2014. Intuitively, many believe this is bad news for stocks as it is a sign of rising debt costs. However, rates often rise because the economy is improving. And if rates are rising because of […]

The Roth IRA is often touted as one of the best ways to save for retirement, since you pay today’s tax rate on contributions and aren’t taxed on any future withdrawals as long as you meet certain qualifications. But for some investors, sticking with a traditional IRA is actually a […]

We all know we should be saving for retirement. But one of the reasons why we don’t is because there’s tons of intimidating jargon. For example, what the heck is a Roth IRA? The introduction of the Roth option has been a winner for those wanting to minimize the cut […]

U.S. Trust's Joseph Quinlan takes a moment to look back on 2013.

83% of homeowners think a mortgage rate below 5% is normal.

What will the New Year bring? NerdWalletpredicts it may come with a few changes that will boost your bank account. The personal finance site published a list of upcoming financial trends and policy changes that could shape 2014. We pulled out three predictions that would be good for you and […]

At the helm of Fidelity’s Magellan Fund for 13 years, mutual fund legend Peter Lynch transformed $US18 million in assets under management to more than $US14 billion. Now Lynch is pretty much out of the game. He chose to manage his own money for his family and philanthropic causes as […]

Is the stock market a bubble? Liz Ann Sonders doesn’t think so. “The growing cries that we’ve reached sentiment or valuation extreme worthy of past tops, or a bubble at its bursting point, seems a bit premature,” wrote Sonders recently. While there are warning signs for the economy and the […]

Just in case you were getting too bullish on stocks, here’s a neat chart from T. Rowe Price. It frames every S&P 500 bull market since 1928 by return and duration. And as of fairly recently, our current bull market (March 2009 – today) reached middle age, meeting the average […]

Since 1986, investing legend and Blackstone Vice Chairman Byron Wien begins each January by attempting to predict the 10 big surprises of the coming year. Wien should be given major props for even trying to do what many investing gurus might not. But in the interest of keeping him honest, […]

There’s always some pain to endure. Perhaps there’s no better encapsulation of that market maxim than this chart from J.P. Morgan Asset Management’s Paul Quinsee. It shows S&P 500 intra-year declines versus calendar year returns. The bar represents year-end returns since 1980, while the little purple dot shows how low […]

Morgan Stanley sees the U.S. economy accelerating nicely in 2014 and 2015. “We expect 2013 real GDP to expand just 1.6%Y this year, shifting to a sustained pickup in growth to 2.6%Y in 2014 and 2.7%Y in 2015,” wrote Morgan Stanley’s Vincent Reinhart. “The government shutdown is a transitory drag […]

When investors are freaked out, they’ll dump stocks, bonds, and other investments simultaneously and almost indiscriminately. During periods of crisis, numerous asset classes will make big swings hand in hand. In other words cross-asset correlations rise. And in the wake of the financial crisis, correlations surged. One of the downsides […]

Warren Buffett is arguably the greatest investor of all time. Unlike some other famous investors who swing for the fences and hit home runs every once in a while, Buffett is known for his low-volatility returns over a very long period. Indeed, a new NBER paper via Counterparties shows that […]

Morgan Stanley chief U.S. equity strategist Adam Parker is out with his stock market call for the year ahead: the S&P 500 is going to 2014 in 2014. Parker’s target is 11.5% above where the index sits today at 1805, and is driven by the bank’s forecast for “6% operating […]

Stocks are at all-time highs, and anyone invested in the market has reason to be happy. But that’s just it. It’s only the people who are investing who have gotten a piece of this 3.5-year-long bull market, which has seen the S&P 500 explode 170% According to Gallup’s annual Economics […]

When it comes to making your money work for you, transparency is key. Just like it’s important to disclose potentially embarrassing life events to your wealth advisor, it’s equally, if not more, important to be honest with your tax preparer. However, that’s not always the case. In a 2011 IRS […]

Whoa, really?!?!

How he picks targetrs.

A Morgan Stanley private wealth manager is being accused of secretly filming three different women he was having sex with, The New York Daily News reports. John C. Kelly, a graduate of prestigious Williams College, was arraigned in Manhattan criminal court Friday night. He’s been charged with three felony counts […]

Goodbye GARP.

All eyes are on the European Central Bank this week, with analysts expecting that the ECB will cut its benchmark refinancing rateby 25 basis-points. Weak inflation and unemployment data could spur the central bank to act, analysts say. For its part, the U.S. also saw its own “meh” inflation stats […]