Saturday, February 6, 2016

Yield Curve Moves Flash Global Recession Warning Signs

By Jamie McGeever

LONDON (Reuters) - If the bond market is to be believed, the world is heading for recession.

The turmoil sweeping through financial markets this year, principally driven by the plunge in oil prices and fears over  China's economy, has lowered government bond yields and flattened yield curves across the developed world.

The question is whether the "yield curve" retains its historical predictive power of indicating slowing growth or even recession in a world of zero - even negative - interest rates, negative yields and trillions of dollars of central bank stimulus coursing through the financial system, if not the real economy.

Saturday, January 30, 2016

Vanguard Plans to Charge Fees as Low as .01 Percent

(Reuters) - Vanguard Group Inc, the world's biggest mutual fund company, has applied to create a new share class for some funds that would charge investors as little as 0.01 percent, or $1 for every $10,000 invested, annually.

Saturday, January 9, 2016

Schwab 'Robo Adviser' Grows to $5.3 Billion in Its Debut Year

By Trevor Hunnicutt

NEW YORK (Reuters) - Charles Schwab Corp's automated investment service grew about 29 percent to $5.3 billion at the end of the fourth-quarter, rising despite volatile U.S. financial markets, a spokeswoman said Wednesday.

Friday, December 18, 2015

Dollar at the Heart of Post-Fed Market Puzzle

By Jamie McGeever

LONDON (Reuters) - The reaction across global markets to Wednesday's historic rise in U.S. interest rates appears to have been smooth and pain-free. But scratch below the surface and there is a puzzling disconnect, at the heart of which lies the dollar.

Saturday, December 5, 2015

My Quote on ETFreference.com

BOULDER, Colo. (Portfolio Economics) - Recently, I was asked by ETF Reference to provide my opinions about investing. As a result, I was quoted in an article titled "101 ETF Investing Tips from the Experts." My tip is #46, concerning buy-and-hold investing. Hope you enjoy the article, which I think is well worth reading.  

Wednesday, September 30, 2015

Why Index Funds Are Better Than Stock Picking

By Michael D. Bodman

BOULDER, Colo. (Portfolio Economics) - Critics say: "you'll never beat the market if you invest in index funds." This is misleading if not wrong on two counts. First, the vast majority of those who actively pick stocks fail to keep pace with the indexes they attempt to beat after accounting for all expenses. On average, index funds are by definition the winning strategy after all relevant expenses. 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 of index funds tracking separate asset classes. This portfolio strategy based on asset classes is used by major university endowments, which have consistently outperformed the market.  

Thursday, July 23, 2015

My Radio Interview

By Michael D. Bodman

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

BOULDER, Colo. (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

BOULDER, Colo. (Portfolio Economics) - One possible exception to my index fund policy is 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 

Monday, April 20, 2015

Even In Inefficient Markets, Index Funds Are the Best Strategy

By Michael D. Bodman

(Portfolio Economics) - One of the arguments against index investing is that it doesn't work in inefficient markets. In less efficient markets, there is more room for active managers to add value, according to critics of index investing. This argument makes intuitive sense. Less efficient markets don't have as much publicly available information for investors to make decisions about stock prices. However, there is evidence that, even in inefficient markets, index funds outperform due to (1) lower costs and (2) the sheer difficulty of stock picking. 

Wednesday, April 8, 2015

Quote ... Unquote

"If you have trouble imagining a 20% loss in the stock market, you shouldn’t be in stocks." 
– John Bogle, Founder of the Vanguard Group