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General Electric Co.’s (GE) long run as a member of the Dow Jones industrial average will end on Tuesday morning. As you have probably already heard, the stock is being replaced by Walgreens Boots Alliance Inc. (WBA). General Electric was an original member of the Dow, first...

Nobel laureate and psychologist Daniel Kahneman shared insights from his current research about decision-making at this year’s Morningstar Investment Conference. He described noisy interferences in the decision-making process as being more important than systematic errors. Noise...

The number of investments required to be adequately diversified depends on a few factors. For most individual investors, the number is not very high. It does depend on what is held in the portfolio and the dollar size of the portfolio overall. This week, I provide a few guidelines. Let’s...

Would you willingly pay $1.25 for something worth $1.00? This is not a trick question. The data showing the current price and the actual value is clearly stated and easily accessible. Knowing this, would you pay $1.25 for something worth $1.00? In a world operating in accordance...

This fall, individual investors could be able to use just two exchange-traded funds (ETFs) to diversify both globally and by asset class. The annual expense of such a portfolio will be about one-tenth of a penny per dollar invested, exclusive of any transaction costs. Vanguard filed...

The stock market endured a mini tantrum on Tuesday in response to a rise in bond yields. The Wall Street Journal described the 10-year Treasury note’s yield as experiencing its largest one-day increase since March 2017. The rise was big enough to cause the benchmark note to end...

May has historically marked the start of the “worst six months” for stocks. Returns for the major stock indexes over the period of May through October have historically lagged those of the “best six months” (November through April). Worst shouldn’t be confused with terrible,...

It’s easy to adhere to an investment strategy when you don’t have to do very much. Such is the case with the approach I use to manage my 403(b) account, which is similar to a 401(k) account. When I recently looked at my account, there was nothing for me to do. No changes were...

In discussing how his company responded to last week’s engine failure on flight 1380, Southwest Airlines CEO Gary Kelly was quoted by The Wall Street Journal as saying, “Everybody has a checklist.” Checklists have been shown to work across a variety of fields, including aviation,...

One of the challenges of retirement planning is projecting how much money you will have in the future. For those of us who are many years away from retirement, this a big uncertainty. We can use various tools and calculators, but they often rely on us making assumptions. The assumptions...