Our Mistakes Benefit Future Generations

I’d have a lot more money today if all I had ever done was buy index funds and hold onto them. Instead, early in my investing years, I bought “gems” like penny stocks before they went bankrupt, options on banks falsely rumored to be ripe for buy-outs, a vacation timeshare because I thought it had [...]

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Should You Time the Markets When Experts Can’t?

I’m always interested in reading academic studies that measure how well professional mutual fund managers can time financial markets. Many fund companies routinely claim their experienced management and propriety research give them a leg up on knowing where the markets are headed next. But is it true? Have mutual fund managers made profitable timing decisions [...]

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Two Index Fund Studies Remind Us of One Good Strategy

Index fund investors let the facts speak for themselves. The long-term data comparing active funds to index funds shows actively managed mutual funds underperform in all asset classes and all investment styles. There is no ambiguity in the results, and there’s nothing new to report here. The data has been saying the same thing for [...]

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The ETF Decision Is Not All or None

Shoebox design has not changed much in 50 years. Shoeboxes are still the same shape, made of the same flimsy cardboard and hold one pair of shoes. The color and lid design do vary among companies, but it’s not a big deal for shoe buyers. We’re only interested in what’s inside the box. The expansion [...]

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Portfolio Solutions® 30-Year Market Forecast for 2015

Each year, I put my head on the chopping block and publish a 30-year forecast for global stock and bond market returns. This forecast is used to create long-term asset allocation strategies for our clients. It’s a terribly imprecise exercise because no one can know how financial markets will perform in the future. There are [...]

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