Views from the Hill

Many commentators claim that the increased popularity of index funds somehow distorts market prices. Their argument premises that indexing reduces the “efficiency” of price discovery. But should increasing use of index funds really concern investors? The acceptance of index funds … Continue reading →

“I have found that the importance of having an investment philosophy — one that is robust and that you can stick with — cannot be overstated.” –David Booth, former CEO and Founder, Dimensional Fund Advisors The US stock market has … Continue reading →

While the Dow and other indices are popularly interpreted as indicators of broader stock market performance, the stocks composing these indices may not represent an investor’s actual portfolio or strategy. A quick online search for “Dow rallies 500 points” yields … Continue reading →

“Wild Week Leaves Investors Reeling” is the front-page headline of today’s Wall Street Journal. After remarking on the week’s “sharp plunges and euphoric rises,” it goes on to rhetorically ask: “What is behind the remarkably sudden swings in the market?” … Continue reading →

“Wild Week Leaves Investors Reeling” is the front-page headline of today’s Wall Street Journal. After remarking on the week’s “sharp plunges and euphoric rises,” it goes on to rhetorically ask: “What is behind the remarkably sudden swings in the market?” … Continue reading →

Costs matter. Whether you’re buying a car or selecting investments for your portfolio, the costs you expect to pay are likely an important factor in making a financial decision. People rely on different sources of information to make informed decisions. … Continue reading →

It’s almost Election Day in the US once again. For those who need a brief civics refresher, every two years the full US House of Representatives and one-third of the Senate are up for reelection. While the outcomes of the … Continue reading →

With school back in session in most of the country, many parents are likely thinking about how best to prepare for their children’s future college expenses. Now is a good time to sharpen one’s pencil for a few important lessons … Continue reading →

Diversification has been called the only free lunch in investing. This idea is based on research showing that diversification, through a combination of assets like stocks and bonds, could reduce volatility without reducing expected return or increase expected return without … Continue reading →

Combining an enduring investment philosophy with a simple formula that helps maintain investment discipline can increase the odds of having a positive financial experience. “The important thing about an investment philosophy is that you have one you can stick with.” … Continue reading →