The Fed’s New Tax on Retirees

Last week, the Federal Reserve rolled out their inflation forecast and interest rate intentions through 2014, and it’s not good news for retirees or anyone else who relies on interest income.  The yield on money market funds, CDs, and other fixed income investments will likely remain well below the inflation rate for the foreseeable future. [...]

Your Advisor’s Fee Matters

Let’s talk advisor fees. They are too high. It’s the last bastion of gluttony in the investment industry and there is no reason for it. People didn’t blink at a 1.0 percent advisor fee (or more) during the 1990s when a roaring bull market lifted stocks by 17 percent annually. Trying to discuss fees was [...]

ETF Industry Stricken with Beta Diarrhea

I am increasing frustrated by the growing number of fund companies that claim the indices they follow in their ETF offer a “better” beta, a “smart” beta and most outrageous of all, an “alpha” beta. There is only one beta, and it is the market. Everything else is marketing spin. Academics worked hard during the [...]

Markets Haven’t Changed, but Maybe You Should

Financial markets don’t change much; people change much more often.  Market prices swing one direction or another based on every piece of news and rumor, often creating either euphoria or panic among investors. In the end, the facts prevail, the market adjusts and life goes on. Stock market volatility has been a little higher than [...]

A Couple of Interesting Short Books

At first look, The Behavior Gap and Gents with No Cents appear to have nothing in common. One is about the financial mistakes we make as investors; the other is about the misdeeds of Wall Street. However, when you think about it, these two short books have a lot in common. The first explains why [...]