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Even if banks are rebounding, most investors can avoid these funds. Read More »
“Winner’s curse” and “empire building” might sound like chapter titles of a Harry Potter knockoff, but they have nothing to do with wizardry. They’re terms researchers use to explain why, when one company buys another, it usually gets a bad deal.The winner’s curse is why you’re better off selling on eBay than buying; in auctions, winning bidders te Read More »
The best way to invest money in stocks or stock mutual funds, financial advisors like to say, is “dollar cost averaging.” That means adding money a little at a time in equal amounts.Mathematically, the advisors are wrong. Averaging will probably cost you more money than you save. Yes, your equal payments will buy more shares when prices are low and fewer when prices are high, thereby Read More »
The dollar is going to lose value. We know that for sure, just as we know stocks will go up. What we don’t know is how much value the dollar will lose and how soon, and whether it will gain briefly before it loses long term.Scarce things become expensive and plentiful things become cheap. The dollar is valuable only because the U.S. government guarantees it can be used for things like pa Read More »
If investors weren't already queasy from months of wild swings in the market, then they're most likely grabbing for the Pepto-Bismol now. A 500-point surge Monday was quickly followed by three topsy-turvy sessions that saw double- and triple-digit dips and climbs. And while there's a chance that the Dow Jones Industrial Average may close its third straight week on an upswing, it's not much consol Read More »

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