Buffet's Idea Of What Is To Come
by Guy Baker
When Billionaire Warren Buffett says (as quoted in Bloomberg.com from the Buffet letter to shareholders) “the economy will be ‘in shambles’ for the rest of this year as financial firms take losses tied to reckless loans made during the housing boom.” You get a pretty good idea what to expect in the coming few months.. . . -READ More-
Those Who Try To Time The Stock Market Get Nipped By Black Swans
Investors suffering during major bear markets are tempted to “time” the market: to sell and avoid the downturn, and then reinvest before the inevitable recovery.
It now seems obvious to these investors that anyone with half a brain should have foreseen last year’s credit crisis and massive worldwide fall in asset prices. By selling out ahead they would have preserved their capital and been able to invest this year when stocks are bargains . . . -READ MORE-
Family Wealth Is Down, Incomes Stagnate
The latest comprehensive survey of household finances by the Federal Reserve shows that the net worth of the average household has dropped since 2001.
It also showed that many Americans—with the exception of the top income earners—have had stagnant incomes in recent years . . . . -READ More-
Active Mutual Funds Do Not Protect Against A Bear Market
Investors like to believe that active mutual fund managers—those who are allowed to buy and sell according to their predictions of the markets—can outperform during bear markets.
Index funds, the reasoning goes, are stuck with the downward trend, since they must remain fully invested at all times and will follow the general trend.
A new study by The Vanguard Group, . . . -READ More-
Young And Sick, Higher Incomes,
And More
Long term care insurance is typically purchased in anticipation of needing nursing care at home or in a facility after retirement.
However, new statistics from Unum, a large long term care insurer, shows that almost half of its policy claims were made by people under age 65.
The average age for younger clients making claims was 53, and the average claim lasted for . . .-READ MORE-
With Impeccable Bad Timing, Mutual Fund Investors Flee
The record for individual investors is clear: they have lousy market timing.
The easiest indicator of what investors are doing with their money are the monthly statistics on inflows and outflows from mutual funds.
Statistics inevitably show that investors pile into funds at the top of bull markets and flee their funds at the bottoms of bear markets. . . . -READ MORE-