At first glance, when you read the title of this blog post, you would naturally think that you shouldn’t put all of your “investment” eggs in one basket. While this is true, the reality is that there is more to it than that. Many people invest a large majority of their “financial” eggs with their employer. Read on to learn why this is so dangerous and 5 strategies that you can use to protect yourself!
This week we have a guest post from Dimensional Fund Advisors on the topic of investing in bitcoin. Bitcoin and other cryptocurrencies are receiving intense media coverage, prompting many investors to wonder whether these new types of electronic money deserve a place in their portfolios.
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.
With Christmas right around the corner, I’m sure you would rather receive a bag of gold instead of a lump of coal. I won’t disagree with that. But the lure of gold is more like a death trap similar to the scene in Indiana Jones and The Last Crusade where Elsa dies chasing the golden holy grail. She pursued gold at all costs and it was a steep price that she paid. With that in mind, I will be sharing 10 reasons why you should avoid investing in gold. Read more “Investing In Gold: 10 Reasons Not To”
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.
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”
In today’s blog post, learn 3 reasons why it may be advantageous for you to start converting some of your IRA to a Roth IRA (known as a Roth IRA Conversion). Doing so could significantly improve your net worth and protect you from an uncertain political future.
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.
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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.