What a time to be an investor! Even as market indexes hit higher and higher levels, the overall cost of investing continues to fall.
It's Friday! And time for our heading-into-the-weekend roundup of worthwhile reads on investing and personal finance.
You just doubled your money if you invested at the 2007 market peak (Bloomberg). More evidence that it is "time in the market" — not market timing — that builds returns.
Emotion-driven decisions during a market downturn can harm your long-term financial health.
Preparing mentally before the market drops can help you keep your emotions in check — as SMI Executive Editor Mark Biller explains today on MoneyWise. Mark talks about how to prepare so you don't get blown off course when the next market storm begins to blow.
A couple of "news notes" today about fund-related acquisitions.
First, brokerage firm TD Ameritrade (TDA) has completed its acquisition of Scottrade, as we noted in the October issue of Sound Mind Investing. (Scottrade has been one of our recommended brokers for SMI Upgraders since 2015.)
An "integration team" soon will begin transitioning Scottrade client accounts to TD Ameritrade's platforms and operating systems. The process is expected to take several months, concluding sometime during the first three months of 2018.
“On a scale of 1 to 10, this is a 10.” So said fraud analyst Avivah Litan about the recent cyber-theft at credit-reporting firm Equifax that potentially compromised the financial and identity information of more than 140 million Americans. Equifax, one of the nation’s big-three credit-reporting companies, said the incident occurred over a period of months as hackers exploited a vulnerability in an Equifax “website application.”
Among the data accessed: Names, Social Security numbers, birth dates, home addresses and, in some cases, driver’s license numbers. In addition, thieves snatched the credit card numbers of more than 200,000 people, along with credit-dispute documents containing personally identifiable information for 182,000 people.
Most of SMI’s strategies are built on the idea of being invested in funds that are current outperformers. Funds whose momentum is waning must be sold and replaced with others that are showing superior strength at present.
A sell-one-fund/buy-another transaction may seem straightforward, but several factors can affect whether the two-part transaction takes place in one day, two days, or over the course of several days. The transaction will be affected by:
Here's our end-of-the-week roundup of new and interesting articles on investing and personal finance:
Myths, markets and easy money (Charlie Bilello, Pension Partners). Market news and opinion will test your willpower. It's not easy to tune out the noise (the extreme forecasts, predictions, and calls) and stick to your plan.
The current issue of Barron's has a summary of the S&P 500's year thus far, as documented by analyst Sam Stovall of CFRA Research:
The Standard & Poor’s 500 index continues to confound skeptical investors, as it adds to its above-average number of new highs — 32 through Sept. 12, more than twice the annual average since 1945 — while enduring an anemic number of 1%-plus volatility days — eight, versus an average of 50 per year since World War II....
In addition, should the S&P 500 close September with a gain, it will be the 17th time since 1945 that the market was up in both August and September — its two most treacherous months.
History then reminds us that subsequent to these consecutive monthly advances, the S&P 500 gained an average 2% in the final three months of the year and rose 13 of 16 times, slipping less than 1.3% each in the final three months of 1983, 2007, and 2012.
Here's our weekly linkfest of interesting articles on investing and personal finance.
The myth of stock-market tops (Wall Street Journal). Mark Hulbert reminds us that market sectors/indexes rarely crest in unison. Some tops may occur well before others.
How to access funds with high minimum investments (Morningstar). Ever wonder why there are multiple "classes" of the same fund? Click and learn.
In a fallen world, disasters happen — and for two millennia, Christians have been at the forefront of relief efforts, helping to ease suffering and provide care in Jesus's name.
Regrettably, disaster-relief fundraising efforts are inevitably infiltrated by scammers seeking their own enrichment. So as you give, be sure to give wisely as well as generously.