Markets

Warren Buffett Reveals A 6th Rule For Investing

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 Reveals A 6th Rule For Investing
Markets

LIVE: Warren Buffett’s 2013 Letter To Shareholders Is Out

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 […]
LIVE: Warren Buffett’s 2013 Letter To Shareholders Is Out
Markets

Mum And Pop May Finally Be Returning To The Stock Market

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 […]
Mum And Pop May Finally Be Returning To The Stock Market
Markets

9 Questions To Ask Before Buying Your First Home

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 […]
9 Questions To Ask Before Buying Your First Home
Markets

The Brilliance Of Jeremy Grantham In One Perfect Quote

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 […]
The Brilliance Of Jeremy Grantham In One Perfect Quote
Markets

Married Same-Sex Couples Get New Tax Breaks

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 […]
Married Same-Sex Couples Get New Tax Breaks
Markets

Hedge Funds Got Turned Upside Down In January

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 […]
Hedge Funds Got Turned Upside Down In January
Markets

Barclays Has Started Paying Some Bankers Based On How Well They Behave

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 […]
Barclays Has Started Paying Some Bankers Based On How Well They Behave
Markets

Everyone Who Is Gloomy About Russia’s Economy Has The Story All Wrong

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 […]
Everyone Who Is Gloomy About Russia’s Economy Has The Story All Wrong
Markets

Here’s The Huge Advantage Wealthy Investors Have Over The Little Guy

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 […]
Here’s The Huge Advantage Wealthy Investors Have Over The Little Guy
Markets

BILL GROSS: ‘Be Careful’

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 […]
BILL GROSS: ‘Be Careful’
Markets

4 Personal Finance Questions Everyone Should Be Able To Answer

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 […]
4 Personal Finance Questions Everyone Should Be Able To Answer
Markets

3 Questions You Should Ask Before Forming A Portfolio Strategy

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 […]
3 Questions You Should Ask Before Forming A Portfolio Strategy
Markets

‘Buy What You Know’ Is A Flawed Investment Strategy

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 […]
‘Buy What You Know’ Is A Flawed Investment Strategy
Markets

The Sell-Off In Stocks Is More About The US Than Emerging Markets

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 Sell-Off In Stocks Is More About The US Than Emerging Markets
Markets

Turkey’s Crisis Is More Than Just Politics

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 […]
Turkey’s Crisis Is More Than Just Politics
Markets

THE GLOBAL 20: 20 Huge Trends That Will Define The World For Decades

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. […]
THE GLOBAL 20: 20 Huge Trends That Will Define The World For Decades
Markets

3 Things To Consider When You Inherit A House

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 […]
3 Things To Consider When You Inherit A House
Markets

Here Are All The Charts And Stats Behind Bob Doll’s 2014 Predictions

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 […]
Here Are All The Charts And Stats Behind Bob Doll’s 2014 Predictions
Markets

REMINDER: You Are Terrible At Investing

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 […]
REMINDER: You Are Terrible At Investing
Markets

Everyone’s Telling Us To Forget About 10% Annual Stock Market Returns

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 […]
Everyone’s Telling Us To Forget About 10% Annual Stock Market Returns
Markets

BOB DOLL: Here Are The 3 Signs Of A Stock Market Bubble

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” […]
BOB DOLL: Here Are The 3 Signs Of A Stock Market Bubble
Markets

Why A 6-Figure Salary Won’t Keep You From Going Bankrupt

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 […]
Why A 6-Figure Salary Won’t Keep You From Going Bankrupt
Markets

JP MORGAN’S ULTIMATE GUIDE TO THE MARKETS AND THE ECONOMY

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 […]
JP MORGAN’S ULTIMATE GUIDE TO THE MARKETS AND THE ECONOMY
Markets

11 Common Money Excuses Boiled Down To One Terrible Philosophy

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 […]
11 Common Money Excuses Boiled Down To One Terrible Philosophy
Markets

The Stock Market Rarely Returns 10% In A Year

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 Stock Market Rarely Returns 10% In A Year
Markets

How To Get Out From Under $US100,000 In Debt

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 […]
How To Get Out From Under $US100,000 In Debt
Markets

A Financial Advisor Explains How To Increase Your Credit Rating

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 […]
A Financial Advisor Explains How To Increase Your Credit Rating
Markets

Millionaires Know When To Stop Being Greedy

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 […]
Millionaires Know When To Stop Being Greedy
Markets

The Cover Of This Week’s Barron’s Is Super Bullish

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 […]
The Cover Of This Week’s Barron’s Is Super Bullish
Markets

Here’s What Stocks Do When Interest Rates Are Rising

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 […]
Here’s What Stocks Do When Interest Rates Are Rising
Markets

Roth IRAs Aren’t Always The Best Way To Save For Retirement

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 […]
Roth IRAs Aren’t Always The Best Way To Save For Retirement
Markets

3 Financial Predictions For 2014 That Will Be Good For Your Wallet

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 […]
3 Financial Predictions For 2014 That Will Be Good For Your Wallet
Markets

Mutual Fund Legend Peter Lynch’s Advice About Investing

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 […]
Mutual Fund Legend Peter Lynch’s Advice About Investing
Markets

The Stock Market Is Not A Bubble

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 […]
The Stock Market Is Not A Bubble
Markets

CHART: This Bull Market Is Getting Old

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 […]
CHART: This Bull Market Is Getting Old
Markets

CHART OF THE DAY: Every Portfolio Manager Will Love This Chart

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 […]
CHART OF THE DAY: Every Portfolio Manager Will Love This Chart
Markets

REVEALED: Why You Will Never Be Able To Invest Like Warren Buffett

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 […]
REVEALED: Why You Will Never Be Able To Invest Like Warren Buffett
Markets

MORGAN STANLEY: The S&P 500 Is Going To 2014 In 2014

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 […]
MORGAN STANLEY: The S&P 500 Is Going To 2014 In 2014
Markets

7 Money Moves You Should Tell Your Tax Preparer About

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 […]
7 Money Moves You Should Tell Your Tax Preparer About
Markets

Here’s Why Falling Prices Are Horrible

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 […]
Here’s Why Falling Prices Are Horrible
« Previous Page