There’s a lot of soul-searching among advisers these days, when financial markets all over the world seem to be tanking simultaneously. Still, past experience has shown that pulling an investment portfolio entirely out of stocks after a downturn is a bad idea. The problem is that no one can say for certain when stock markets will begin to go up. Mind you, eventually some stock timer somewhere will announce that it’s time to get back into stocks, and lo, the stock market will climb, as if by magic. But with thousands of professional stock timers out there making predictions, someone
Today’s WSJ notes that Fidelity, Vanguard, and T. Rowe Price Group have signed up for the Treasury Dept’s guaranty fund for money market funds that were held prior to September 19th. Now all the major mutual fund families with large money market funds appear to be participating in the fund (Charles Schwab is also on the list). Investors wondering about their accounts should check their fund’s web site; participating funds seem to be announcing their participation fairly prominently. You may also want to confirm that the specific fund that you own is covered; for example, Schwab’s U.S. Dollar Liquid Assets …Read More
Dimensional Financial Advisors is a passive-investment-oriented investment firm closely associated with Eugene Fama, 2003 Economics Nobel Laureate and father of the efficient market hypothesis. Today they sent me a link to a very nice presentation by their vice president, Weston Wellington. The presentation, “Is It Different This Time?” runs about 18 minutes long and puts the present stock market gyrations into a historical perspective by reviewing some of the “bear markets” of the last 50 years. It’s not overly jargon-filled and should be pretty accessible. The present market downturn reflects concerns about the non-availability of credit, the extent and …Read More
The financial markets seem to be taking a breather after last week’s roller-coaster rides. We’re all digesting the latest news of short-selling restrictions and a $700 Billion stabilization plan for mortgage-related debt. But now is also a good time to step back and think more broadly.
Ron Lieber, who writes the New York Times “Your Money” column, was a busy man last week, writing columns and recording video clips to help readers understand what was going on. In Saturday’s edition, he wrote a nice article on “Minimizing Your Own Exposure to Risks.” He noted that now is a …Read More
Master Limited Partnerships are complicated investments in which you share in the profits from an income-generating business. Most often these partnerships make their money in energy-related businesses. They’re publicly traded and offer certain income tax benefits. They aren’t for everyone, however.
I wasn’t planning to write about Master Limited Partnerships (MLPs) anytime soon, but I feel compelled to comment on a piece written by Michael Brush on MLPs at msn.com today. Brush is a talented and prolific journalist and I admire his work. However, I think that this article could use a bit more nuance (or maybe he wrote it …Read More