By: John Stepek 30/04/2019 This article is taken from our FREE daily investment email Money Morning. Every day, MoneyWeek's executive editor John Stepek and guest contributors explain how current economic and political developments are affecting the markets and your wealth, and give you pointers on how you can profit.Sign up free here. By now, most investors know that active fund managers struggle to beat the market. That’s the main reason for the surge in popularity of cheap “passive” funds (those which aim to track the market using mechanical methods, rather than beat it using expensive managers). However, while this is true of funds that invest in equities, it’s not the case for every active fund. ; If you’re investing in a bond fund, it seems, the choice is far less clear cut. Why do bond fund managers beat their benchmarks? Looking for Easy Games in Bonds, a new paper from Michael Mauboussin of Blue Mountain Investment Research, … [Read more...] about Are bond fund managers smarter than equity fund managers?
Should i buy index funds
By: John Stepek 05/02/2019 This article is taken from our FREE daily investment email Money Morning. Every day, MoneyWeek's executive editor John Stepek and guest contributors explain how current economic and political developments are affecting the markets and your wealth, and give you pointers on how you can profit.Sign up free here. Active fund managers come in for a fair bit of abuse in Money Morning. So today, I’m pleased to be able to say something rather more positive about them. They are actually pretty good at buying stocks. The ones they pick tend to beat the market, in the short term at least. That’s the good news. The bad news? They are absolutely atrocious at selling them. Fund managers are great at buying but awful at selling It’s often said that investors would be as well to employ a monkey to chuck darts at a list of stocks pinned to a wall, as to employ a professional fund manager to run their money. The monkey is cheaper, and … [Read more...] about Why every fund manager should employ a monkey
If you follow the financial news, you probably read stories a few weeks ago about the death of John Bogle, who is credited with creating the first stock index fund in the early 1970s. Bogle was one of the founders of the Vanguard Group, and he helped make index investing a global force in the financial markets. The basic concept behind an index fund is that because the financial markets are so competitive, you would be better off simply trying to match the overall returns of the market than trying to beat the market. Because index funds generally don’t employ people to research companies or markets, they are often low cost. Thus, index funds can be an efficient way to track market returns. What that means is if the overall stock market is up 6 percent for the year, and you invest in an index fund that tracks the overall market, you are highly likely to also be up about 6 percent, less fees for running the index fund, which are usually modest. Conversely, if the market is down 6 … [Read more...] about Road to Retirement: Is index investing the best option?
By Adam Shell USA Today Thu., Jan. 17, 2019 John Bogle, the founder of the Vanguard Group who revolutionized investing by inventing the index fund, a product that gave Main Street investors a cheap way to gain broad exposure to the stock market, has died. He was 89. Often dubbed the “father of index investing,” Bogle — a champion of the individual investor — was the driving force behind the shift away from a beat-the-market mentality and high-cost funds run by stock pickers that have reshaped the industry. More than 40 years after its birth, the index fund has led to today’s preference for so-called “passive” investing, a strategy that enables investors to buy a diversified basket of stocks with low expenses with a goal of matching the returns of a broad market index like the Standard & Poor’s 500. “Don’t look for the needle in the haystack,” Bogle would famously say. “Just buy the … [Read more...] about John Bogle was the ‘father of index investing’
Sections SEARCH Skip to content Skip to site index Business Subscribe Log In Log In Today’s Paper Business | Real Estate Funds Have Been a Balm in a Stinging Market Supported by ByTim Gray Jan. 11, 2019 After years of being overshadowed by the likes of Apple and Alphabet, real estate funds have lately edged ahead of the overall stock market by betting mainly on old-fashioned assets like office buildings, malls and warehouses. In the fourth quarter, when the stock market really started to jitter and slide, the S&P 500 sank 13.52 percent, including dividends, but the FTSE Nareit All Equity R.E.I.T.s Index, a leading index composed of publicly traded real estate investment trusts, lost only 6.1 percent. For all of 2018, as the S&P 500 lost 4.4 percent, including dividends, the FTSE Nareit index lost only 4 percent. So it goes for this stalwart, if stodgy, sector: Real estate can often chug along when … [Read more...] about Real Estate Funds Have Been a Balm in a Stinging Market