I’ve always enjoyed creating mix tapes…I have books, and now my iTunes, filled with my personal mixes. In the spirit of my DJ alter-ego, I’ll be putting out a weekly mix of my favorite article and posts…think of it as a reader’s mix tape.
When Stock Pickers Stop Picking Stocks (Wall Street Journal) If you don’t have a subscription to the Wall Street Journal, you won’t be able to access this article. The quick summary is more and more mutual funds are beginning to invest in ETFs, rather than picking stocks. Be sure to know what you are owning and paying for; if you are paying a fund manager to pick stocks, and they are just buying the market in the form of ETFs, you may be overpaying for your investment. Know. What. You. Own.
How To Make Volatility Your Bitch (The Reformed Broker) Don’t be afraid of volatility. Learn to embrace it. If you expect long term returns, you have to deal with short term drawdowns. These drawdowns actually provide opportunities to improve long term performance due to investing at lower prices in a regularly scheduled dollar cost averaging program, like a 401(k).
What do Investors (Irrationally) Fear? (The Big Picture) Quick read about investor fear, but the main reason I included is the link to the article regarding investor’s pain of loss versus pleasure of gain.
The Noise Visualized (The Irrelevant Investor) Great graph showing the days the financial media runs with dramatic headlines, and what long term growth really looks like despite those days. Hopefully this reaffirms the need to stick to your investment strategy.
When Beating The Market Isn’t The Point (ETF.com) The importance of diversification, an investment strategy, and why you shouldn’t necessarily compare your portfolio to “the market”.
Mystery of Vanishing Premiums (ETF.com) In my firm, I use Dimensional Funds in my clients’ portfolios, and the premiums discussed in this article are the foundations for their investment strategy. Investment styles move in and out of favor, but sticking with one for the long term is usually a good decision.
Disclaimer: Nothing on this blog should be considered advice, or recommendations. If you have questions pertaining your individual situation you should consult your financial advisor. For all of the disclaimers, please see my disclaimers page.