In August of 2011, the Gold ETF (GLD) surpassed the S&P 500 SPDR ETF (SPY) as the largest exchange-traded fund in terms of assets. Since then, the investment performance of these two funds tells how out of control things got for gold, as the SPY is up almost 60% while GLD is down nearly 25%….
What’s An Investor To Do About Bonds?
Most investors spend their time worrying about the stock market, but the bond market is in a fascinating place right now. Interest rates are low, but retirees and risk averse investors need sources of income and a less volatile ride than the stock market provides.Everyone seems to want rates to rise, but it’s just not…
When Are Value and Growth Going to Matter Again?
Generally, investing in different factors will give you a diversification benefit because certain styles tend to perform differently depending on where we are in the market or economic cycle. As with most investing rules of thumb, you can usually only bank on this relationship working out most of the time, not always.
Don’t Take This Personally
“I wasn’t unlucky, I got outplayed. I got outplayed that time. But I know I’m good enough to sit at that table.” – Mike McD, Rounders With the wild swings in the markets lately, it makes sense that investors are getting nervous. But it becomes a larger issue when you start to take the market’s…
Lies Investors Tell Themselves
“The reason I talk to myself is because I’m the only one whose answers I accept.” – George Carlin
Misery Loves Company
The Wall Street Journal ran a piece this morning about the recent “bloodbath” in performance for a handful of hedge funds.
Pop Quiz Hot Shot: What’s the Line in the Sand?
“Shoot the hostage.” – Keanu Reeves, Speed
Why I Love the Stock Market
“The thing that most affects the market is everything.” – James Playsted Wood While it’s never fun to lose money, the past couple of weeks reminded me once again why I love the stock market. Mr. Market is basically a crazy person that takes pride in frustrating people on a consistent basis. Every investor feels…
Trial by Fire
Tom Brakke from The Research Puzzle had a really smart take on the investment industry in a piece last week. In the post he discusses how odd it is that so many investment positions are filled but there’s no training involved after the fact: When you hire an experienced analyst, it’s understandable that the employer…
Common Sense Thoughts on Stock Market Losses
As they say, this drop in the market “feels” different. Stocks have been getting absolutely destroyed. So what’s an investor to do? Phil Pearlman made a very sobering, yet truthful, statement in a post yesterday: Sorry, no one can help you during a market correction. As much as I would like to think that the…
