It’s been almost four years since the S&P 500 has had a 10% correction. That makes it the second longest such streak since World War II, trailing only the period from 1990 to 1997 that went longer without experiencing a double digit loss. Bonds, however, the investor’s go-to asset class for safety, have experienced two…

A reader asks: Does it make sense to equal weight the Europe and Pacific ETFs as opposed to just buying the entire EAFE index fund? How has this strategy done historically? This is a great question because so many U.S. investors have a home bias within their portfolio and probably don’t spend enough time thinking…

Learning about investing from some of the all-time great investors can be both enlightening and confusing all at the same time. Enlightening because it always pays to stand on the shoulders of giants, but confusing because even the greatest investors disagree on the best ways to be successful in the markets. An example from two…

One of the biggest reasons people run into financial troubles is because most hate talking about money or their financial blunders. It’s a taboo subject. But I’ve found that working in the investment industry makes it much easier for people to randomly talk to me about their finances. I like to compare it to those…

Morningstar’s Jeffrey Ptak shared some very insightful tweets from Berkshire Hathaway’s annual meeting this weekend: It’s estimated that more than 40,000 people pack the CenturyLink arena in Omaha to hear what Buffett and Munger have to say at the Woodstock of Capitalism. Every year I read about more and more value investing groups and panels…

After the Dow Jones Industrial Average reached the meaningless psychologically significant 1,000 point level in 1966, the market began to falter. During this correction Warren Buffett began to hear from a handful of the investors in his partnership who warned him that the market could decline even further. Buffett said that these predictions brought up two…

Brett Arends from MarketWatch has an interesting piece out this week that looks at the historical returns on the U.S. stock market. He goes through some research that shows some damning evidence about the long-term returns in U.S. stocks: Since 1982, for example, the stock market has gone up by an average of 6.5% a…

Over the past few years emerging market stocks have been dead weight in a diversified portfolio. From 2011-2014, the Vanguard Emerging Market ETF (VWO) had a total return of -7.98%. Four years and nothing to show for it. EM was basically left for dead by investors last year. According to Morningstar, investors pulled $5 billion from…

Here are some things you’ve probably been hearing during the current bull market from a wide range of investors including some tongue-in-cheek translations about what they really mean. On Fair Value: Bears: We think the market’s fair value is much lower than current levels. (Translation: We have to say it’s way lower than the level where…

In the latest edition of Stocks For the Long Run, Jeremy Siegel offered up a great stat on the small cap premium. From 1926-2012, small cap stocks returned 11.5% per year while the large cap S&P 500 returned 9.7%. But if you were to exclude the 1975-1983 period, which coincides with ERISA laws that made it easier…