Guest Blog by Kip Robbins, CFA, Zacks.com. Halloween is here and like everyone else, I’ve thought hard about my costume. In the past, I’ve worn Lucha Libre masks and cowboy outfits, but generally I like it creepy. One of my favorites was the year when I donned a horned goblin mask, doctor’s coat and carried two [...]
Archive for October, 2011
Goblins, Ghouls and the Halloween Effect
Posted in Active Investing, Asset Allocation, ETFs, Leverage, Market Outlook, Market Timing, Markets, Mutual Funds, Uncategorized, Volatility, Wealth, tagged CLF, Halloween, Handbook of Equity Market Anomalies, IWM, IWV, SPY, TNA, zacks.com on October 31, 2011 | Leave a Comment »
From the Portfolioist Book Shelf: Freefall by Joseph Stiglitz
Posted in Active Investing, Asset Allocation, Behavioral Finance, book review, Books, Corporate Governance, Uncategorized, tagged bank failure, banks, economist, financial crisis. mortgages, Free Markets and the Sinking of the World Economy, Freefall: America, Joseph Stiglitz, Nobel Prize, World Bank on October 28, 2011 | 5 Comments »
Joseph Stiglitz received the 2001 Nobel Prize in Economics and shared the 2007 Nobel Peace Prize for his work with the Intergovernmental Panel on climate Change (IPCC). He is a professor of Economics at Columbia University and was Chief Economist of the World Bank from 1997-2000. Freefall: America, Free Markets, and the Sinking of the [...]
Why You Don’t Have to Occupy Wall Street
Posted in Active Investing, Behavioral Finance, Diversification, financial planning, Investors, Long-term investing, Market Outlook, Markets, Rebalancing, Retirement, Stock Investing, Uncategorized, Wealth, tagged 401k, MyPlanIQ, Occupy Wall Street, Occupy Wall Street movement, retirement, retirement savings on October 26, 2011 | 1 Comment »
MyPlanIQ recently ran an interesting article in their weekly newsletter regarding the Occupy Wall Street movement and the overwhelming wealth disparity in the world. What we liked about this article was the actionable advice towards the end that 401(k) plan participants can take to retain control over building their own wealth—without having to march on [...]
Asset Allocation: An Alternative View
Posted in Active Investing, Asset Allocation, Diversification, ETFs, financial planning, Investors, Leverage, Long-term investing, Market Outlook, Market Timing, Markets, Rebalancing, Regular Investing, Retirement, Risk, Scams, Stock Investing, Uncategorized, Volatility, Wealth, tagged asset allocation, bonds, ETF, exchange traded fund, IGE, implied volatility, Money, Money Magazine, monte carlo, Morningstar, SDY, Treasuries, Treasury bonds on October 21, 2011 | 11 Comments »
In a recent article, I analyzed a model portfolio designed by Money magazine, in conjunction with analysts at Morningstar. The focus of my piece was whether I could reconcile the projections of risk and return for this portfolio with my own calculations. I was pleasantly surprised that the results seemed very consistent. As a follow-up [...]
Q3 2011: Another Test for 2010 Target Date Funds
Posted in Active Investing, Asset Allocation, ETFs, financial planning, Leverage, Long-term investing, Low Cost Investing, Market Outlook, Market Timing, Markets, Retirement, Risk, Stock Investing, Uncategorized, Volatility, Wealth, tagged market forecast, market risk, market swings, market volatility, monte carlo, performance, projected risk, Q3, recession. recession fears, S&P 500 Index, Target Date Folios, Target Date Funds, VIX, volatility on October 13, 2011 | 7 Comments »
The third quarter of 2011 was impressively bad. The S&P 500 Index lost 13.9% for the quarter. The VIX, the standard measure of market volatility, repeatedly closed above 40 during this quarter. To put this in perspective, the average daily closing value of VIX from the start of 1990 through the end of September 2011 [...]
Sanity Checking Estimates of ‘Expected Returns’ in Retirement Planning
Posted in Active Investing, Asset Allocation, Diversification, ETFs, financial planning, Investors, Long-term investing, Market Outlook, Market Timing, Markets, Mutual Funds, Rebalancing, Regular Investing, Retirement, Uncategorized, Volatility, Wealth, tagged Annual returns, ETFs, excahnge-traded funds, expected annual returns, income, Income Investing, Money Magazine, Morningstar, retirement, retirement income, retirement planning on October 11, 2011 | 3 Comments »
One of the most important variables in creating an investment strategy to meet a specific goal (such as retirement) is what you assume about the future returns from stocks, bonds, and other available investment opportunities. Another highly important input to planning is your estimate of the risk associated with each investment alternative. These estimates of [...]
Tax Loss Harvesting Season is Here
Posted in Active Investing, Behavioral Finance, financial planning, Income Investing, Investors, Long-term investing, Market Outlook, Market Timing, Rebalancing, Retirement, Risk, Stock Investing, Taxes, Tools, Uncategorized, tagged dividends, gains, income, IRS, loss, Tax Loss Harvesting, taxable gains, Taxes on October 7, 2011 | Leave a Comment »
Believe it or not, year-end is right around the corner which means that it’s time for investors to start thinking about their tax implications. In order to help you make sense of it all, we wanted to share this article originally published last year by guest blogger Steve Thorpe. Enjoy– Would you invest a few short [...]
Risk Budgeting: A Critical Tool for Portfolio Management
Posted in Active Investing, Asset Allocation, Diversification, Investors, Long-term investing, Market Timing, Markets, Risk, Uncategorized, Wealth, tagged asset allocation, Leverage, retirement, risk budgeting, risk tolerance, sector-specific risk, Target Date Folios, Target Date Funds, target date strategies, volatility on October 5, 2011 | 5 Comments »
We are all familiar with the traditional idea of basic budgeting: you set up a plan for how much money you will save and spend each month. “Risk budgeting” is much the same idea for investors, but involves setting up a plan for how much risk you plan on taking with your long-term investments.
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