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Two concepts often left out of conversations about investing are opportunity cost and endowment effect. Though different, they do overlap and can have implications for your portfolio. Opportunity cost is what you forfeit by taking a certain course of action, even if the action is...

Ten companies were expected to complete their initial public offerings this week. Normally, this would be ho-hum news unless it involved a very well-known company. [I doubt Blue Apron (APRN), which went public this morning, has enough name recognition outside of millennials to count...

“Financial advisers need to show their clients what the distributions of stock returns are over time.” This paraphrased recommendation was given by University of Chicago professor Eugene Fama at a CFA Chicago Society event held last week. The comment was in reference to what...

As was widely expected, the Federal Open Market Committee raised interest rates by a quarter point (0.25%). Whenever there is action by the Federal Reserve, bond experts are often turned to for their views on navigating the credit markets. Their insights clearly reflect active...

At what age should you change to a more conservative allocation, and what should that allocation look like? The answer depends on who you ask or where you look. Target date funds, for instance, use glide paths. Over time, a glide path changes a portfolio’s allocation from being...

The return of capital by companies to shareholders is a key contributor to long-term returns. A forthcoming study by Morningstar’s Philip Straehl and Yale’s Roger Ibbotson attributes more than two-thirds of the real (inflation-adjusted) return in stock prices for the period...

I spent the first half of this week at the CFA Institute’s Conference in Philadelphia. The conference is targeted toward CFA charterholders and covers a very wide range of topics. It’s also an international conference, with the third biggest delegation of attendees, behind the...

There is a constant stream of new academic research about investing. Some of the papers attempt to explain the key drivers of returns. Some are more focused on investor behavior. Many papers are focused on realizing higher returns (“delivering alpha”). For an investor seeking...

When NPR’s update of the day’s headlines mentions the stock market’s lack of volatility, conditions must be extraordinarily calm. Such is the case right now. The Chicago Board Options Exchange’s Volatility Index (the CBOE’s VIX)—an obscure index to those who don’t...

Special Note: We’re announcing today that Fidelity Investments’ senior investment strategist Bruce Johnstone will be a keynote speaker at this year’s upcoming AAII Investor Conference. Johnstone was previously ranked as the #1 equity-income fund manager during...