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Investor Update

American Funds says that some actively managed funds are better than passive (index) funds. Specifically, the company argues that actively managed funds with low expense ratios and high levels of manager ownership (a group that Amercian Funds calls “Select Active”) outperform...

Investor Update

There are three certainties in life: death, taxes and me wearing green on St. Patrick’s Day. I have a green shirt on today. Taxes are due a month from now; April 18 for most people. (If you haven’t started working on your return yet, our tax guide can help.) As far as the other...

Investor Update

Any time a fund invests in something more esoteric than exchange-listed stocks from a developed country or widely traded high-quality bonds, the potential for something to go wrong increases. We saw this happen in December when the Third Avenue Focused Credit Fund—a mutual fund—suddenly...

Investor Update

As I said last year, Warren Buffett’s annual letter to Berkshire Hathaway (BRK.B) shareholders is on my must-read list, and I suggest adding it to yours as well. His letters always provide investing insights written in Buffett’s folksy but outspoken manner. This year’s letter...

Investor Update

A new study is highly critical of the retirement planning tools available online. The authors, including financial planning expert Harold Evensky, called the advice provided from the majority of these tools “extremely misleading.” We discuss the study in the online version...

Investor Update

Call up a one-year chart of the NASDAQ Composite index and you’ll notice a line of support and resistance around 4,900. Extend the chart to cover three years, and a second support/resistance line appears at approximately 4,600. Those support/resistance areas may not be not completely...

Investor Update

There is some good news for investors: The war on expenses is continuing. Vanguard recently filed with the Securities and Exchange Commission (SEC) to launch two funds with total annual operating expenses of 0.01%. That is not a typo; the expense ratio was copied and pasted directly...

Investor Update

An AAII member called last week asking for guidance on how to create price targets. Though very much a fair question to ask, it is not a question that’s very easy to answer. Do a search on Google for “how to determine a stock’s target price” and you’ll get 151,000 results....

Investor Update

Momentum indicators are commonly used to find winners. Winners are stocks with comparatively higher price returns. In normal market conditions, momentum indicators work well on an aggregate basis. Momentum indicators can lose their usefulness in turbulent market conditions, in...

Investor Update

Mr. Market started 2016 on the wrong foot, and his mood has gotten worse throughout this month. Barring a big rebound next week, this will be the third consecutive year the S&P 500 has declined in January—something that has only happened two other times since 1950. The index...