The regulation of mutual funds is very much in the news. Not surprisingly, shareholders, fund managers, regulators, and, of course, politicians, are all weighing in with regard to the adequacy of current regulations. We contend that when it comes to reigning in abuses, no regulator can match the power of consumer sovereignty. Enforcement, ultimately, must […]

On May 3 the S&P 500 broke 1,500, a level not reached since September 2000. Though this index is still the most widely used gauge of “the market” it has greatly underestimated the performance of the overall U.S. stock market in recent years. It has also failed to keep pace with the U.S. economy, which

The statistical indicators of our parent organization, the American Institute for Economic Research, suggest that while economic contraction is more probable than continued expansion, the timing of the next recession cannot be determined. Investors should assume that the capital markets are “aware” of this situation, and simply maintain their current portfolio allocations. Our model portfolios

Financial headline writers scrambled feverishly to explain the market swoon of February 27 which by the end of the day had sent the S&P 500 plummeting 3.5 percent. Soon after the opening bell, Reuters exclaimed: “Stocks fell sharply at the open…after China’s main stock index tumbled and an unsuccessful assassination attempt on Vice President Dick

Worried about a decline in the value of your home? Financial instruments are now available that can alleviate your fears, at least according to those who are offering these products. The indexing mania that now reaches virtually every corner of the capital markets recently extended into residential real estate, through the S&P/Case-Shiller Home Price indices,

I will understand my own circumstances and formulate an investment plan based on my needs, not in anticipation of market trends. • I will remind myself that investing is not a form of entertainment—if I have an urge to gamble, I will go to Las Vegas and leave my investment portfolio alone. • I will

Thailand’s new government, installed via military coup in September, blundered badly when, on December 19th, it imposed new restrictions on foreign investors. The result was bad for Thailand and bad for emerging market investors who were diversified inadequately. We suspect, however, that the lessons conveyed will ultimately prove to be a boon to capital markets,

The shift in power in Washington has, not surprisingly, prompted a good deal of prognostication from those who make their living prognosticating. Thankfully, we are free instead to focus on prudent investing. It is interesting to note that up until the votes were counted, no one was really sure how Congress might be altered. Nevertheless,