Articles of Interest

Articles of Interest: Be Wary of Outperformance Claims

Throughout the week, I run across articles that may be of interest to you. In today’s Articles of Interest series, I am sharing an article titled Institutional’s Tiny Edge.

In this article, author Larry Swedroe references a study that shows institutional asset managers outperform retail investors. However, the study goes on to say that the outperformance is only a mirage since the asset manager deviated from the benchmark.

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Articles of Interest: The Market Is Not Over Priced

Throughout the week, I run across articles that may be of interest to you. In today’s Articles of Interest series, I am sharing an article titled Jeremy Siegel: The S&P 500 Is Fairly Valued.

In this article, Jeremy discusses that the S&P 500 is not over-priced. This flies in direct conflict with what many of the other so-called “crystal ball experts” are saying.

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Articles of Interest: Stock Protection Funds

Last week I shared an article on the Perils of Owning Individual Stocks. Interestingly enough, this week I ran across an article titled An Innovative Approach To Mitigating Single-Stock Risk.

This article was written by Sean Allocca for Financial Planning Magazine. In the article, Sean discusses a new product called a Stock Protection Fund (SPF), which is designed to help high net worth individuals who have a high concentration in corporate stock. Read on to learn why you should steer clear of these products. Read more “Articles of Interest: Stock Protection Funds”

Articles of Interest: Perils of Owning Individual Stocks

This week, I’m sharing an article from ETF.com titled Perils of Owning Individual Stocks. Author, Larry Swedroe, discusses why buying individual stocks is a very risky proposition. As you read the article, you will discover some very interesting facts about owning individual stocks that squarely places the odds OUT of your favor.

My favorite stat is the one that says only 25% of the stocks make up all of the market’s gains. This is a striking statistic and highlights just how difficult it is to actively pick stocks. The research was based on 3,000 total stocks and as you can imagine, determining which 25% stocks to own would be very difficult, if not impossible.

Don’t attempt to play the game of filtering stocks in an attempt to find the best values or the diamonds in the rough. Instead own a globally diversified portfolio (of thousands of stocks) centered around efficient market pricing and investments that have historically shown an ability to generate higher returns.

What are your thoughts on active versus passive investing? Do you believe that owning individual stocks is a viable strategy? Have you had success with owning individual stocks? Please feel free to share any comments, questions, or experiences you have below. 

I hope you enjoyed this weeks’ Articles of Interest. If you’re new to our blog and wish to receive weekly financial planning tips, please sign up for our eContent.

Brad E.S. Tinnon
CERTIFIED FINANCIAL PLANNER™

Articles of Interest: Warren Buffett Still Likes Stock Market

This week I am sharing an article from Yahoo Finance titled Warren Buffet: I Still Like The Stock Market Because Of The Bond Market. In this article, author Myles Udland, shares a comment that Buffett made to CNBC. Buffett said, “Stock valuations makes sense with interest rates where they are.” At first glance, it seems like Buffet is saying that stocks are good to buy today because of low interest rates but maybe aren’t good to buy if interest rates rise. However, it would be a mistake to assume that.

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Articles of Interest: [Breaking News] Tax Reform Part II

This week’s Articles of Interest is a continuation from last week’s article. Last week I shared an article that discussed the tax reform plan released by the House. This week, the Senate unveiled a plan of their own which differs from the House plan. Today’s article from WealthManagement.com is titled Everything You Need To Know About The Senate GOP Tax ProposalIn the article, Erik Wasson and Sahil Kapur discuss the differences between the House and Senate Plan.

While there are some major differences, it appears that neither plan effectively helps small businesses. Large corporations are the real benefactor here. They get a top tax rate of 20% while many small businesses will still see top tax rates of up to 39.6%. This is unfortunate as small business drive the majority of employment in our country.

Stay tuned as I’m sure this tax reform bill will continue to change. We will be sure to keep you informed.  Read more “Articles of Interest: [Breaking News] Tax Reform Part II”

Articles of Interest: [Breaking News] Tax Reform

On Thursday, the House GOP released an outline of their proposed tax reform bill known as the Tax Cuts and Jobs Act. In today’s Article’s of Interest, I am sharing an article from ThinkAdvisor titled GOP Tax Reform Bill Unveiled: A First Look.

This article provides an overview of what is being proposed. Included are significant changes to income tax brackets, standard deductions, child tax credits, among other things. 

Note that this bill is not finalized and still must be voted on. As more details become available we will be certain to share them with you. Read more “Articles of Interest: [Breaking News] Tax Reform”

Articles of Interest: Social Security Benefits To Increase

Throughout the week, I run across articles that may be of interest to you. In this week’s article, Mary Beth Franklin of Investment News outlines the COLA increase recently approved by the Social Security Administration. In addition, Mary Beth discusses other nuances to Social Security as well as how the COLA increase could cause some people to see a sizable jump in their Medicare premiums.

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Articles of Interest: 30 Years Ago…

Yesterday marked the 30-year anniversary of when the financial markets were disrupted in a way never before seen. October 19, 1987 is infamously known as Black Monday. On that day, the US Stock Market (Dow) dropped 22.6%. That is the largest one-day drop the stock market has ever experienced. 

This week’s Articles of Interest is an article published in Financial Planning Magazine by Lee Conrad, Suleman Din, and Maddy Perkins. It is appropriately titled Black Monday, 30 Years Later. In this article the authors share various numbers pertaining to that day, how to react when the market suddenly declines, and the likelihood of whether or not a loss of this magnitude could occur again.

No one really knows what caused the crash, but it does bring up the question, “What can we learn from that situation?”. Read on to see my thoughts regarding this.

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Articles of Interest: Equifax Breach

Throughout the week, I run across articles that may be of interest to you. In this week’s Articles of Interest, I am sharing an article from Jeff Benjamin of Investment News titled 7 Ways For Advisers To Help Shield Clients From Equifax Data Hack.

In the wake of the Equifax data breach, I thought it would be important for you to know what steps you should take. Be sure to check out the link in the article where you can see if your information was compromised.

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