KIM: Don’t let your fear, greed push you to ‘behavior gap’
While we clearly can’t control the economy or the markets, our behavior is up to us.
Investing Column
Articles
SKARBECK: Exchange’s bizarre IPO triggers securities probe
Securities regulators are looking into several issues raised in the aftermath of the failed initial public offering of BATS Global Markets on March 23.
SKARBECK: Observers cry foul over pension fund proposal
The legislation would change the formula used to calculate pension costs and effectively allow companies to lower their annual contributions.
KIM: Is No. 1 NFL draft pick a franchise fix or fool’s gold?
“Scorecasting” authors say teams consistently place excessive value on high draft picks and routinely overpay, in terms of current and future picks, to move up the draft order.
SKARBECK: Go all-in on stocks to avoid bond risks
The symbolic pie charts marketed to investors with multiple colored slices—each representing the percentage investors need in all the various categories of stocks, bonds, commodities, real estate and alternative investments—had suddenly turned into one solid color.
SKARBECK: Big investment scores few and far between
The dream for many investors is to buy a stock that hits the home run—a desire for the lucrative multi-bagger (insert five, 10 or your pick in place of “multi”.)
KIM: Every investor needs an ‘overnight test’
Pretend someone comes in one night and sells all your investments. … Would you rebuild the same portfolio you had before?
SKARBECK: Buy-and-hold can still work
The investment math of compounding at high rates of return over long periods can lead to astonishing results.
KIM: Markets start strong in ’12, but be ready to ‘tie a knot’
Franklin D. Roosevelt famously said, “When you get to the end of your rope, tie a knot and hang on.” Investors who heeded that advice during the scary decline last August and September have been rewarded.
SKARBECK: Regulatory battle brews over adviser standards
A behind-the-scenes battle is being waged over securities regulators’ proposal to hold investment advisers and stockbrokers to the same fiduciary standard—something investors wrongly assume is already the case.
KIM: Investors should discard herd mentality and go for it
Don’t let conventional decision-making reduce your chances of winning the investment “game.”
SKARBECK: Big-company stocks did better than small firms
In 2011, large-capitalization, high-quality U.S. stocks significantly outperformed small-company stocks.
KIM: Predictions often worthless, but take a look at these
There are some highly experienced and skilled investors who make unconventional predictions I think are worth paying attention to.
SKARBECK: Despite problems, U.S. still land of opportunity
Yes, America struggles with instances of poverty, unemployment and other hardships. But we also have the freedom and the opportunities available to improve our standard of living.
KIM: Here’s timeless advice that will serve you well
Every once in a while I come across timeless advice like Davis Advisors’ “The Wisdom of Great Investors: Insights from Some of History’s Greatest Investment Minds.”
SKARBECK: Hidden 401(k) fees can kill retirement savings
Remarkably, a recent AARP survey found that seven out of 10 participants (employees) incorrectly believe they do not pay any fees for their 401(k) plan.
KIM: When credit evaporates, cash is king … so save some
Like many, I eagerly await the publication of Berkshire Hathaway’s annual reports, which always contain timeless lessons from Warren Buffett.
SKARBECK: Judge says no-fault SEC deal is weak, ineffective
A federal judge in Manhattan took a stand against lax oversight of the financial industry, rejecting a $285 million settlement between the Securities and Exchange Commission and Citigroup—and setting a July trial date.
KIM: Even money market funds can be risky for investors
Unlike bank deposits or CDs, investments in money market funds are not guaranteed.
KIM: Tax credit gives Hoosiers edge in saving for college
There may be a $5 or $1,000 bill lying on the sidewalk, but it’s up to you to pick it up.