Bear Markets Lead to Bearish Forecasts

A new study by CXO Advisory Group confirms that bear markets lead to bearish market forecasts, but that these forecasts have no material predictability of future market prices. If you’re wondering what economists will forecast for market returns over the next 3, 6, 9 or 12 months, look no further than the stock market’s performance [...]

Chickens for their Eggs and Stocks for their Dividends

A chicken for its eggs, bees for their honey, cow for her milk and a stock for its dividend. This old Wall Street saying is fashionable again. Stocks are yielding more than 10-year Treasury bonds. This hasn’t happened in 50 years. The phenomenon occurred because bond yields are at historically low levels and companies continue [...]

The Most Tax-Efficient ETF Structure

It is a widely known fact that U.S. equity ETFs are more tax-efficient than traditional mutual funds. This is due to the in-kind exchange mechanism within ETFs that allows a fund manager to dispense of low-cost basis stock without incurring a capital gain in the fund. In contrast, a traditional fund must sell securities within [...]

Five Wins for Index Funds

Index funds are a superior investment product to funds that try to beat the markets. Their low fees, low turnover, and broad diversification provide the highest probability for long-term success. An investor’s best chance for meeting a financial goal is a portfolio of low-cost index funds that is well allocated across multiple asset classes (Read [...]

Index Funds Hit Mid-life Strong and Healthy

The modern index fund was born 35 years ago on August 31, 1976. It was then that John Bogle and the Vanguard Group launched the First Index Investment Trust that tracked the popular S&P 500 index. The fund name was changed to the Vanguard 500 in the 1980s and became the largest mutual fund in [...]