When to go with your gut with investing
There are four ways to invest in stocks. You can buy a low-cost index fund, with holdings that reflect an entire market or a broad swath of one. You can buy a managed fund, hiring an expert to do the stock picking. You can conscientiously study data from individual companies and invest in their shares. Or you can buy stock in companies that appeal to you subjectively — that is, invest... READ MORE
Investing with a conscience is catching on
Socially responsible investing has really blossomed in the past few years. What used to be viewed as a niche investment philosophy is now firmly planted in the mainstream, with everyday consumers using their dollars to support companies that align with their personal values around sustainability and social progressiveness. But beyond the day-to-day choices — like what stores to... READ MORE
Readers’ financial questions answered
Q: An address listed on my credit report is incorrect. Is there any reason to start a dispute to change it? — K.K. A: It’s a good idea to fix the error. The incorrect address could be the result of a “mixed file,” when information of two individuals gets combined into one credit report, or “it could be an indication of an attempt at identity theft,” said Paul Stephens of the... READ MORE
Bond funds help avoid interest rate risk
Traditional bond funds lost value last year as the Federal Reserve steadily increased interest rates. The Fed could also increase interest rates in 2019, and this causes some concern among bond fund investors. One of the disadvantages of traditional bond funds in a climate of rising interest rates is that there is no fixed maturity date; fund managers are continually modifying their... READ MORE
Smaller stocks are doing well, for now
The stock market’s biggest gains are once again coming from its smallest companies, but the trend may not last much longer. Smaller-company stocks like Allegiant Travel and AK Steel have been soaring since late December and leading the rest of the market — a sharp reversal from much of the winter, when smaller stocks were plunging more than the rest of the market. The Russell 2000 ... READ MORE
In defense of some managed bond funds
I want to discuss bond funds whose managers aren’t hemmed in by allegiance to an index or by the ultraconservative viewpoint that Treasury bonds and notes are the center of the universe. I dislike such stolid holdings as total bond market exchange-traded funds and funds designed to replicate the Bloomberg Barclays Aggregate Bond index — which is 42 percent Treasuries and includes no... READ MORE
Cash rules as stocks and bonds waver
Suddenly, cash is king again. For years, cash languished at the bottom of the investment rankings, weighed down by nearly non-existent interest rates. But with the Federal Reserve raising short-term rates four times last year, money-market funds and online savings accounts began paying interest that came close to approaching inflation. This while stocks, bond funds and gold all posted ... READ MORE
Are index funds becoming too popular?
Forty years ago, the thought of buying a stock index fund was ridiculed. Why would anyone be satisfied with an investment that promised nothing more than the same return as the market? Later this year, however, U.S. stock index funds may for the first time control more in assets than mutual funds run by stock-picking managers who are trying to deliver better returns than an index like... READ MORE
How to handle stock market’s volatility
It’s normal to worry about your portfolio when the stock and bond markets become volatile and when you see your portfolio fall significantly in value. It’s natural to wonder what to do, if anything, to protect your portfolio. The best general advice is to keep focused on long-term objectives. Ideally, you have structured your portfolio based on long-term objectives. If so, you... READ MORE
When stocks dip, is that the time to buy?
Around the beginning of 2018, the volatility of the stock market suddenly picked up. It was a worrying development for most investors, who prefer a smooth ride to a turbulent one. But volatility is a necessary condition if you want to deploy a strategy known as buying the dips, or BTD. The idea is to purchase stocks when they have dropped sharply, anticipating that they will bounce... READ MORE
