Despite the large number of mutual funds and ETFs that invest in equities, there are really only three primary strategies each of them follows. Let’s say you want to invest in the asset class comprising large cap U.S. stocks, whose benchmark is the S&P 500 index. You can invest in a fund that includes all…
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In 1989 author Michael Lewis, in his book Liar’s Poker, revealed that the role of a bond trader at Salomon Brothers, the biggest trading firm on Wall Street during the 1980s, was “to call someone he doesn’t know and try to sell that person something he doesn’t want.”  Dan Wheeler, the founder of Dimensional Fund…
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There has been much speculation recently as to when the Fed will raise interest rates.  The concern is that volatility in bond prices will spike and investors that have become used to bonds as a stable source of income will freak out.  If you haven’t started to worry about this, is now the time to…
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Are you paying your broker or the manager of your actively-managed mutual fund to generate a higher return for you than you think you can get from lower-cost passively-managed index funds?  According to Larry Swedroe and Andrew Berkin, authors of a new book entitled “The Incredible Shrinking Alpha,” you’re wasting your money. The term alpha…
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Wouldn’t it be nice if there were a magical way to invest the cash in your IRA or 401(k) and know the return you will get in advance? When it comes to equities, returns are extremely difficult to predict. That’s because returns on stocks or stock funds can vary widely from year to year. If…
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Equities are among the most growth-oriented investment assets from which you can choose.   Almost all well-diversified portfolios include some degree of investment in stocks of one kind or another.  What is less well-known is that there’s another asset class that has experienced explosive growth since 2009: publicly traded real estate investment trusts, or equity REITS. …
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