An Argument for Favoring the Loser Over the Winner Funds

Performance chasing is common in investing. Not investing based on momentum strategies per se, but choosing funds, money managers and newsletters based on recent performance. Institutional investors (pensions, endowments, etc.) are as guilty as individual investors when it comes to looking for the hot hand. Such behavior often leads to worse outcomes than better ones….

 

The Different Types of Risk

Last week’s commentary about how tolerance for risk changes with age prompted a few readers to respond. Most of the emails I received focused on defining what risk is. In the world of finance, risk has more than one definition. Risk questionnaires often try to assess a person’s willingness to incur a drop in a…

 

Tax Guide Update – The Tax Cuts and Jobs Act and 2018 Taxes

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Retirement Planning Strategies Following the 2017 Tax Act In the aftermath of the Tax Cuts and Jobs Act of 2017, this article discusses some strategies that retirees may want to consider. The lower tax rates and higher standard deductions make taking advantage of Roth…