Salient to Investors: People make more rational decisions when money-related choices were posed in a foreign language that they had learned than when they were asked in their native tongue. People are more risk-averse when an impersonal decision is presented in terms of potential gain than when it is framed as a
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: David Goel at Matrix Capital Mgmt said DeMark’s algorithms are much more predictive than any other system. Tom DeMark’s says fundamentals do matter, and markets are governed by waves that crest and fall based on Fibonacci numbers and the closely related golden mean, or golden ratio 1.618. DeMark can’t explain why his
READ MORE... →Salient to Investors: Fidelity Investments said average balances in employer-sponsored 401(k)accounts rose to $75,900 in Q3, the highest level since it began tracking values in 2000. ICI said americans held $3.3 trillion in 401(k) plans as of June 30. Read the full article at http://www.bloomberg.com/news/2012-11-08/fidelity-says-401-k-balances-reached-highest-level.html
READ MORE... →Salient to Investors: As the housing market recovers, neophyte investors are following the lead of private-equity firms like Blackstone, investing in cheap properties they can rent and sell when values rise enough. Lawrence Yun ar NAR said the typical small-size mom-and-pop investor has two or three properties – about 90 percent of
READ MORE... →Salient to Investors: Pound-cost averaging incurs an opportunity-cost to be paid for holding money in cash while it waits to be invested in the market. A recent US Vanguard study over rolling 10-year periods from 1926-2011 found that, on average, lump-sum investing resulted in higher returns than pound-cost averaging about two-thirds
READ MORE... →Salient to Investors: Jim Goff at Janus writes: Only invest money you won’t need for five to 10 years, set it and forget it. Australia has the best such plan with its mandatory retirement fund contributions of 9% of salary – assets now exceed Australian GDP and the Australian stock market. Bad headlines are the
READ MORE... →Salient to Investors: History shows investors are more prone to sell “winning” investments but hold on to losers. Momentum trend-following strategies will lose some money, but probably not all of your money. Avoiding losses is the key advantage of momentum strategies. Kevin Orr at F-Squared Investments said: Avoid loss, even at the expense of
READ MORE... →Salient to Investors: Dale Roberts writes: Very few middle class investors will retire due to the money generated from their investment portfolio or their investment philosophy. The stock market is mostly long periods of losing money against inflation, punctuated by two rabid bull markets that led to extreme overvaluation. Regularly, US equity
READ MORE... →Salient to Investors: The SPDR S&P 500 ETF is 9% of all U.S. ETF assets. Exchange-traded products comprise $1.3 trillion in assets. Net new cash into ETFs is on pace for more than $100 billion for the 6th year in a row. XTF reports that over 80 exchange-traded products have been withdrawn from the
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