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A ten-point plan for the bear market
After a long period of financial markets being treated largely as background noise by the media, news of their daily swings have been promoted back to the front pages of newspapers and the top of TV news bulletins. Naturally, ordinary investors are suddenly sitting up and taking notice. What’s causing all...
Overconfidence is a pension manager’s worst enemy
By LARRY SWEDROE The first chapter in my book Investment Mistakes Even Smart People Make and How to Avoid Them is on overconfidence, focusing on the all-too-human tendency towards being overconfident of our skills—what could be called the “ego trap.” Ask...
The case for combining dividend strategies
By CRAIG LAZZARA Throughout this year’s market turmoil, dividend strategies have been among the most reliable sources of relative, if not absolute, performance. Through June 21, 2022, e.g., when the S&P 500 had declined -20.4% YTD, the S&P 500 High Dividend Index (roughly...
Passive investors, active owners
Passive investors can’t be active owners? Nonsense. As ROBIN POWELL explains, a growing number of financial technology firms are helping investors who want to be both. There are so many misconceptions about ESG, and one of the biggest is that...
The Shiller CAPE 10: how to use it, not abuse it
The Shiller cyclically adjusted (for inflation) price-to-earnings ratio, referred to as the CAPE 10 because it averages the last 10 years’ earnings and adjusts them for inflation, is a metric used by many to determine whether the market is undervalued, fairly...
Three things you need to know after recent market falls
Robin writes: Stock markets respond to news, and sometimes bad news comes thick and fast. That’s just what’s happened in the last couple of weeks. Inflation shows no signs of abating; interest rates are rising; the war in Ukraine is weighing...
How susceptible are you to financial bullshit?
One of the biggest leading indicators of people’s tendency to be swayed by bad investment advice is in their susceptibility to put their faith in pseudo-profound financial jargon. A new academic study seeks to actively measure consumers’ ability to detect...
