Retirement Watch Weekly
More on Fama and Shiller – Efficient versus Inefficient Markets
Eugene Fama and Robert Shiller were two of the three recipients of the 2013 Nobel for Economic Science. That prompted a lot of people to say that the prize committee was having some fun by naming two people with opposing theories. Fama was an early champion of efficient markets, while Shiller contends markets can be […]
The Desert Island Investment Portfolio
Most investors trade too often. One reason they don’t buy and hold is that their portfolios aren’t properly diversified. Another reason is that they pay too much attention to the headlines and short-term trends instead of putting those aside and focusing on the longer term. Here’s a good discussion of that process, including research indicating […]
Is Gold Overvalued?
The problem many investors have with gold is that it is very difficult to analyze its fundamentals. It doesn’t pay income, have a book value, or even have much industrial use. It’s hard to point to what moves gold prices. In response to this, a couple of recent papers recently addressed gold’s price. Two sets […]
Best 529 College Savings Plans
Morningstar is out with its annual ranking of section 529 college savings plans. These are plans that qualify for a slew of tax benefits under section 529 of the tax code. I’ve written about the plans in detail in the past. They’re great estate planning tools and provide an excellent way to sock money away […]
The Generational Social Security Rip Off
A couple of years ago we had a movement ranting about income inequality among the best and worst-paid in the U.S. The new movement, being pioneered by billionaire former hedge fund manager Stanley Druckenmiller, is to focus on the inequality between older and younger generations. Specificially, Druckenmiller talks about his generation and previous ones receive […]
Beware Mutual Fund Return Data
We’re in one of those periods when you have to be very careful when evaluating mutual fund performance data. Most funds report three-year and five-year data. Tha means the data won’t include the pre-crisis period and includes only returns from the bottom or near it. It also consists of returns that were influenced by the […]
How to Beat Other Investors
For a number of years, institutional investors have been cheerleaders for what is known as the “Yale model” of investing. Generally, this involves choosing asset classes other than basic stocks and bonds and also changing that allocation periodically to reflect changes in markets and the economy. The latest research, however, indicates that the Yale model […]
Beware Medicare “Observation” Status
You might need a subscription to read this from The Wall Street Journal, but I’ll give you the highlights. As you might know, when you’re at a hospital you might be officially admitted or you might be kept there but under “observation status.” Ideally observation status is so doctors can run tests and take other […]
