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 [...]

The Portfolio Solutions 30-Year Market Forecast for 2012

Each year, Portfolio Solutions® puts forth a long-term forecast for stock and bond market returns. We know it’s not possible to predict short-term return, but it is possible and necessary to estimate long-term expected returns. These estimates form the basis for investment decisions. Our asset class forecast relies on the simple belief that market participants, [...]

Expect Years of Pain before Market Gain

The more risk you take, the more money you’ll earn — if you live long enough. History shows that it can take decades for stocks to outperform. Making money in stocks can take a long time. A $10,000 investment in the S&P 500 during April 2000 grew to only $10,306 by October 2011. A similar [...]

Total Bond Index Funds are Not the Total Bond Market

If you are interested in index funds, it is likely that you own shares in a U.S. total bond market fund or ETF. There are roughly $160 billion invested in total bond market funds and ETFs, most of which follow the Barclays Capital U.S. Aggregate Bond Market index or a derivative of it. This index [...]

10 Reasons for a Halloween Rally

October is historically thought of as a difficult month for the stock market. This year could be different. I believe the stocks will dress for Halloween as Captain America rather than Freddy Krueger. October is probably the most feared month in the stock market. It’s the month the market crashed in 1987 and the month [...]