As a result of last week’s assassination of an Iranian general by the U.S. military, investors are understandably worried about the impact that a potential war with Iran could have on the stock market. One might assume that the uncertainty associated with war and its potential negative outcomes could have a devastating effect on stock…
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Last week the Securities and Exchange Commission (SEC) relaxed the requirement for Exchange Traded Fund (ETF) providers to disclose on a daily basis the underlying holdings in their funds. This change was requested primarily by fund companies T. Rowe Price, Natixis, Fidelity, and Blue Tractor, who would like to develop ETFs that follow what are…
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Earlier this week Charles Schwab & Co. announced that they would eliminate online transaction fees for ETFs, stocks, and options. Two days later TD Ameritrade followed suit, causing brokerage stocks to suffer their worst weekly drop in well over a decade as investors digested the earnings losses brokerage firms are likely to experience. Is this…
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You’ve probably heard through the financial media that bonds are on a tear this year. The 10-year U.S. Treasury bond, one of the safest investments on the planet, has gained over 10% so far. That is its best performance in over a decade. Is this the right time to start selling those risky stocks and…
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In 2006 James Montier, a researcher at the investment banking arm of Dresdner Bank, decided to test the behavioral biases of some 300 investment fund managers. One of the questions he asked was “Are you above average at your job?” Over 70% of the respondents answered yes. A number even included comments along the lines…
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