After deciding how much of your portfolio should be in each asset class (stocks, bonds, commodities, etc.), the next asset allocation decision to make is how much of your portfolio should be invested in your own country’s stock market and how much should be invested abroad. Weighting by market capitalization A common sense starting point […]
There’s one question that I’ve seen asked more times than any other over the last several months: “Should I keep investing in the market given how much it’s going down right now?” To me, this question suggests a fundamental misunderstanding. The market isn’t “going down.” A more precise way to explain the situation is to […]
The impact of investment costs is never emphasized enough. In order to see how much it affects mutual funds returns, let’s compare a few different domestic stock mutual funds: Fund A: Vanguard’s Total Stock Market Index charges no sales load and has an annual expense ratio of 0.15%. Fund B: American Funds’ Investment Company of […]
As our economy and stock market tanked over the last several months, talk of inflation seemed to disappear. Instead, people began discussing the possibility (and ramifications) of deflation. Now that the stock market has picked back up–at least for the moment–I’ve heard several people voice concerns about inflation again. Over an investor’s lifetime, inflation takes […]
This is part one of a guest post series from Monevator, a personal blog that provides money tips and motivation for private investors. You can find: part two – Ignore Your Portfolio for Months at a Time part three – Why you Should Invest When the Market is Falling Stock market volatility scares many people […]
“How do I rebalance my portfolio in this crazy market?” That was a question I received recently in a long email from James. He explained that he was a “moderate” investor. He had a good mix of assets in bonds (of various maturities) domestic & international stocks (small, mid and large cap), and natural resources. […]
