Salient to Investors: John Bogle writes: While the idea of market timing is simple, many hedge fund managers have tried but precious few have succeeded. Joe Carlen, author of “The Einstein of Money”, said the Benjamin Graham Joint Account – the predecessor to Graham-Newman Corporation – lost 70% from 1929 through
READ MORE... →Salient to Investors: Mark Hulbert writes: The small number of advisers who outperform the market rarely keep doing so, so choosing a recent market beater does not increase your odds of future success. Of the 51 advisers out of more than 200 tracked who beat the Wilshire 5000 Total Market
READ MORE... →Salient to Investors: Matt Schreiber at WBI Investments says limiting losses is critical to keeping with your investment plan. Morningstar says 40 of the 2,600 non-sector stock mutual funds it tracks have lost money in the 12 months through April 2013. Zheng Sun and Lu Zheng at University of California,
READ MORE... →Salient to Investors: Seth Masters at Bernstein Global Wealth Mgmt says: Bubbles today are driven by fear and investors’ desire for safety versus greed and recklessness in the past. Supposed safe havens of gold, bonds and dividend-paying stocks are dangerously overpriced. Over the past 5 years more than a trillion
READ MORE... →Salient to Investors: Moshe Milevsky at York University says: People with stable careers and regular paychecks – tenured professors, accountants, nurses etc. – should invest in bonds. People with variable incomes tied to the market or economy – salesmen, brokers, home builders, entrepreneurs etc. – should buy stocks. The most
READ MORE... →Salient to Investors: From January 1, 2013, UK advisers will be banned from accepting commissions from asset managers and instead charge clearly delineated fees. In 2009, the Review of Financial Studies said the cost of investing in British funds is higher than anywhere in the developed world aside from Scandinavia and Canada – and average 2.21 percent of
READ MORE... →Salient to Investors: A fund is highly correlated to its benchmark index if its R-squared reaches 90: at 95, it is considered a ”closet” index fund. The steady rise in correlations among all stocks is making it more difficult than ever for actively managed funds to differentiate themselves from their benchmarks. Morningstar
READ MORE... →Salient to Investors: The S&P 500 is not a measure of the American economy and U.S. stocks because it is global due to the multinationals included in the index. The S&P 500 is not broadly diversified because it is market cap-weighted. Tech is 20 percent, Apple near 5% , Exxon Mobil near 3%. An S&P indexed fund is not
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