The U.S. stock market is once again trouncing the broader international markets this year. Through the end of September, the total U.S. stock market, as measured by the Vanguard Total Stock Market Fund, is up nearly 7% while the Vanguard Total International Fund is basically flat on the year. Since the beginning of 2013, the…

“Stocks, although suffering from inflation in the short term, protect against it in the long term.” – William Bernstein

“Building a plan around the phrase ‘sometimes you get lucky’ is not a plan.” – Cliff Asness Bloomberg aired a great sit-down interview with John Bogle and Cliff Asness last week. They covered a wide range of topics, but the one I thought was the most important for investors was that both agreed we will…

The severity and depth of the financial crisis caused a shift in attitude for many in the financial world. Many things changed for investors following the crash, but especially the way we think about risk. It was a scary time and for many the fear never went away. The intellectual case for fear has always…

The prevailing wisdom on real estate investment trusts (REITs) is that they’ll be doomed once interest rates start to rise. Because of the way REITs are structured for tax purposes they have to pay out at least 90% of their taxable income in the form of dividends. The thinking goes that higher interest rates will…

Thousands of investment professionals gathered at McCormick Place in Chicago earlier this summer for the annual Morningstar Conference. The room had a definitive buzz to it at lunchtime. Bill Gross was the keynote lunch speaker and everyone was patiently waiting to see what he would have to say after stories, rumors and gossip swirled from…

It’s not simply the news or the data itself that makes things interesting when following the markets, but the discussion and reaction that they bring about from investors. Interpretation and perception become the most important element, especially since information is so easy to come by these days.

Vanity Fair has a fascinating article in the latest issue on airplane safety and how it affects pilot error. To make planes safer these days, engineers have designed automated systems that basically allow the planes to fly themselves.

“If every stock you own is on the new high list, you’re a momentum guy. If every stock you own is on the new low list, you’re out of business.” – Leon Cooperman Mean reversion is one of the most powerful forces in all of finance. Above average performance is eventually followed by below average performance….

In early 2006 I was in the market for a new job. A friend from college worked for one of the largest banks and asked if I’d like to interview for a spot in his group.