Wednesday, September 30, 2015

Why Index Funds Are Better Than Stock Picking

By Michael D. Bodman

BLOGOSPHERE (Portfolio Economics) - Critics say: "you'll never beat the market if you invest in index funds." This is wrong on two counts. First, the vast majority who actively pick stocks fail to keep pace with the indexes they attempt to beat after accounting for all expenses. Index funds are, by definition after all relevant expenses, the winning strategy on average. Second, while it's true that you can't beat the market by investing in an index fund such as the Vanguard 500 Index Fund (MUTF: VFINX) -- since it is the market -- you can outperform through a portfolio composed of different index funds tracking separate asset classes.  

Tuesday, September 29, 2015

U.S. Biotech Bloodbath Hits Hedge Funds But Some Bargains Emerge

By Sinead Carew

(Reuters) - A seven-day selloff of U.S. biotechnology stocks has hit sector investors - especially hedge funds - hard. But some managers say it was overdone and are already eyeing bargains such as Gilead Sciences Inc <GILD.O> and Amgen Inc <AMGN.O>.

Thursday, September 24, 2015

West Virginia Engineer Proves to Be a David to VW's Goliath

By David Morgan

MORGANTOWN, W.V. (Reuters) - Daniel Carder, an unassuming 45-year-old engineer with gray hair and blue jeans, appears an unlikely type to take down one of the world's most powerful companies.

Sunday, September 20, 2015

Fed Turns Attention Again to U.S. Inflation Outlook as Key Risk

By Jason Lange and Ann Saphir

WASHINGTON (Reuters) - After months of noting that inflation was very low, but voicing confidence it would eventually trend toward the Federal Reserve's target, Chair Janet Yellen appears to be acknowledging that the central bank does have an inflation problem.

Wednesday, September 9, 2015

Pentagon Chief to Protect Funds for Cyber, Space, and Electronic Warfare

By Andrea Shalal

ST. LOUIS (Reuters) - U.S. Defense Secretary Ash Carter on Wednesday vowed to invest aggressively in innovative research programs and protect funding for new space, cyber and electronic warfare weapons, despite what he called a "terribly disgraceful era of budget turmoil."

Saturday, September 5, 2015

U.S. Labor Market Shows Some Muscle Despite Slower Job Growth

By Lucia Mutikani

WASHINGTON (Reuters) - U.S. job growth slowed in August, but the unemployment rate dropped to a near 7-1/2-year low and wages accelerated, keeping alive prospects of a Federal Reserve interest rate hike later this month.

Saturday, August 22, 2015

Special Report: U.S. Banks Moved Billions in Trades Beyond CFTC's Reach

By Charles Levinson

NEW YORK (Reuters) - This spring, traders and analysts working deep in the global swaps markets began picking up peculiar readings: Hundreds of billions of dollars of trades by U.S. banks had seemingly vanished.

Sunday, August 2, 2015

Liquidity Risks Overhang High-Yield ETFs

By Michael Connor

NEW YORK (Reuters) - Shareholders in the AdvisorShares Peritus High Yield ETF who sold in late 2014 are probably not the last to pay up for liquidity risk, a growing hazard for some fixed-income investors bracing for the first Federal Reserve interest rate hike in nearly a decade.

Thursday, July 23, 2015

My Radio Interview

By Michael D. Bodman

BLOGOSPHERE (Portfolio Economics) - My recent article published by Seeking Alpha, titled "HACK: How to Invest in Cyber Security," led to a radio interview on Market Wrap with Moe Ansari. The show is syndicated in major cities across the country.

My interview starts around minute 25.00 of the segment titled "Investing in the Cyber Security Sector" and continues for about 15 minutes. Enjoy the show. 

Monday, July 20, 2015

New Content From Reuters

By Michael D. Bodman

BLOGOSPHERE (Portfolio Economics) - In cooperation with Reuters, Portfolio Economics is now publishing news about the economy and financial markets. Select economic and financial news will be made available to Portfolio Economics readers for up to 90 days, after which these stories will no longer be displayed, according to the terms of the relationship with Reuters.

Sunday, June 7, 2015

Shares of Berkshire Hathaway on Sale Now

By Michael D. Bodman

BLOGOSPHERE (Portfolio Economics) - I consider one possible exception to my index fund policy: Berkshire Hathaway (NYSE: BRK.B). While the stock market, measured by the SPDR S&P 500 Trust ETF (NYSEARCA: SPY), has gone up this year, shares of Berkshire Hathaway are down. Now could be a good time to establish a position or add shares to an existing position in Warren Buffett's investment company. Berkshire Hathaway has consistently outperformed the market for decades and is likely to continue outperforming in the future.

Saturday, May 30, 2015

Quote ... Unquote

"The stock market is filled with individuals who know the price of everything but the value of nothing."
– Philip Fisher