Why Industry Bubbles Burst and How to Weather the Storm

Why do industry bubbles burst? And how does it affect your investment portfolio?

With housing prices making a strong recovery since the financial crisis of the late 2000s, it’s worth taking a look at what causes investments or industries to zoom to the stars and then crash back to earth. Industry bubbles generally occur because the incentive for profit is so powerful that it blinds us to rational… Read More

Investors Leading a Low Cost Revolution

Investors are leading a low cost investing revolution by demanding more from their investment brokerage.

Shopping around can save you money at the grocery store, the car dealership, and perhaps most importantly, in your investment portfolio. More investors than ever realize that one of the keys to a successful investment experience is managing costs. Need evidence? Mutual fund expense ratios—the annual charges paid to cover management fees as well as… Read More

How REITs Can Benefit a Diversified Portfolio

REITs could benefit your investment portfolio if the return and risk profile matches your investment goals.

If you own a house, and your home equity represents a hefty portion of your total assets, you may not want or need any more investments in real estate. But if you’re trying flesh out your portfolio with some real estate exposure—without the hassle of becoming a landlord—one way to achieve it is through real… Read More

Interest Rate Debate Hinges on 3 Factors

The Federal Reserve did not raise interest rates in September. Will they in October?

The U.S. Federal Reserve decided against raising the federal funds rate at its latest meeting in September, extending its zero interest rate policy and ramping up the debate about what it will take for the Fed to act. Disagreements in 3 areas explain the Fed’s caution. The most crucial and most recent influence on the… Read More

Investing in Stocks During Retirement

Should you consider stock investing during retirement?

If you’re like most people, investing in stocks during your working years offers one of your best opportunities for growing a nest egg large enough for a comfortable retirement. And when retirement is still years away, any volatility that comes from stock ownership can be waited out by patiently holding a diversified portfolio. For most… Read More

Factoring Sequence Risk into Retirement Planning

Be sure to factor sequence risk into retirement planning.

When building your retirement portfolio, investing in a routine, systematic way can ensure that you purchase assets at random prices over time. So long as the market moves higher in the long run, any temporary declines, or even major corrections, will provide you with the chance to buy assets on sale. The same cannot be… Read More

Don’t React To Every Bit of Stock Market News

Reacting to Stock Market Volatility Can Have a Negative Impact on Your Investment Portfolio.

When you’re learning to play football, one of the first things any coach will teach you is to watch the other player’s waist. The reason for that is that it’s easy to get faked out by watching the head—or the feet. Just like it can be easy to get faked out and over-react to the… Read More

Looking Past Near-Term Difficulties in China

China's economy and regulations have had a volatile effect on the U.S. and global stock markets.

China has quickly gone from hero to scapegoat of the global economy, bearing the blame for the sharpest sell-off in stocks in the last three years. The policy actions taken by Chinese leaders over the last several months, highlighted by the decision to devalue its currency, have called into question their ability to manage the… Read More

Understanding Risk and Setting Realistic Expectations

Know the inherent risk in stock ownership before market volatility hits.

Until the recent global equity sell-off, stocks had been on an upward trajectory for some time, with the S&P 500 Index—a broad measure of U.S. stocks—delivering six straight years of gains. An investor who’d bought shares in an S&P 500 Index fund at the last market bottom, on March 9, 2009 would have seen that… Read More

Long-Term Investing: Avoiding the Urge to Trade

Diversification and Long-Term Investing can help you achieve investment success

It’s easy to talk about ignoring short-term market events and to recommend focusing your attention on the market’s long history of positive returns. It’s another thing entirely to sit through the daily volatility of the market, watching your account values jump around, without succumbing to the temptation to trade your portfolio holdings. The urge to… Read More