Probably one of the biggest investment concerns today is the so-called “bond bubble.” Interest rates are at an all-time low thanks in part due to Central Bank bond buying and weak demand for borrowing in this slow growth economy. The fear of owning bonds has hit an unprecedented — and in my view, unwarranted — level. There is a good reason to own bonds in a portfolio.
You Just Can’t Change Some People
I was having a cup of coffee at the local java shop and overheard a guy talking with his friend about investing. It went something like this, “Just about the time I started making money, the system screwed me.” Wow! This is too good to mind my own business. I leaned in a little closer… [...]
Markets Can Predict People
People can’t predict markets but markets can predict people. Forecasts about future economic growth have no impact on the future performance of the stock market while the past performance of the stock market has an impact on what forecasters believe about the future.
ETFs Are Split Into ETIFs And ETAFs
Exchange-traded funds (ETFs) are mutual funds that trade on a stock exchange. For many years, all ETFs were index tracking products. The first ETF to not follow an index was launched in 2008. Today, there are 60 actively-managed ETFs listed in the U.S. and many more pending. To avoid confusion, I propose referring to index products as ETIFs and active products as ETAFs.
Rejoice! Your House is an Investment Again
Good news for homeowners – your house is appreciating in value! The housing bubble (and bust) is over and prices are now poised to appreciate with the inflation rate, as they should.
