I recently read a piece by Jim Parker a Vice President at Dimensional Fund Advisors entitled “Hedge of Darkness.” Parker notes “Big money can be made from hedge funds.
Year-end is always hectic but it’s well worth taking the time to consider a few investment moves that could have positive tax ramifications.
If buying low and selling high is the secret to investing success should you buy every time the market drops significantly?
Many investors believe step one in dialing down their portfolio’s risk should be reducing equity exposure. Yes stocks are riskier than bonds but that’s an oversimplification that can result in some misguided moves.
In their well-known and oft-quoted 1986 study of 91 large pension plans “Determinants of Portfolio Performance” published in the Financial Analysts Journal Gary P. Brinson L. Randolph Hood and Gilbert L. Beebower found 94% of portfolio returns were determined by the asset allocation plan and just 6% attributable to market timing and security selection.
For over ten years we have preached the the merits of the efficient markets hypothesis and why investors should use low-cost tax-efficient broadly diversified asset class funds in an asset allocation plan tailored to their unique concerns goals and risk tolerance.  We believe this strategy is the optimal way to grow and protect wealth.  And many of the greate
Surveys are beginning to record what we all know is true. The financial crisis has had a profound impact on investors. In fact 58 percent of investors have lost faith in the stock market according to a survey of 1274 Americans conducted by Prudential Financial.
I came across an article in the Financial Post that I thought was worth sharing.  The article was titled Investing is Boring: If You Want Excitement Go to Vegas.
According to Jim Parker Vice President DFA Australia Limited understanding investment risk begins with accepting that “the market itself has already done a lot of the worrying for you.” As Parker notes “Markets are highly competitive which means that new information is quickly built into prices.
We probably all can recall hearing our mother say “Don’t put all your eggs in one basket.”  That solid advice to diversify is often misapplied to the investing front. Some investors think that buying 50 blue chip stocks complies with that adage.