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Investors are Still Failing

9 years ago, I wrote about Disappointing Returns, the fact that for the 20 years ending Dec. 31, 2006, the average stock fund investor earned a paltry 4.3 average annual compounded return compared to 11.8 percent for the Standard & Poor’s 500 index. I went on to note that in these 20 years, $10,000 in the [...]

The David’s Biggest Mistake

If you have a teenager in the house, you're likely to hear the expression,"that's the stupidest thing I've heard in my life." A few things come to mind, "I guess you haven't listened to some of the people I worked with," is one, but I can't keep from saying,"make a list and see if the [...]

A Post DOMA Roundup

Let's start this week with Roger Wohlner's post at The Chicago Financial Planner, Understanding Your Bond Fund’s Duration. Bonds feel safer than stocks, or at least that's the impression I get listening to how people reference bonds. The issue? Bond prices fluctuate, and drop as rates rise. Duration is the explanation of how this happens, [...]

View Your Investments as you Would a Business

A Guest Post today - Treating your investments as anything less than a business is a mistake. Following advice of your broker isn't always bad, but just like in business you should see a return on your investments and most brokers have interests that might not align with yours. If you have found yourself losing money, then [...]

Stock Diversification and Coin Flips

I wrote about this five years ago, in my pre-blog days, time to revisit and share with new readers. Today, we're going to look at a complex topic, how diversification helps reduce your risk when investing in stocks. I'm going to use an analogy, coin flipping, to simulate stock returns in a way that should [...]

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