The following article was condensed from “Some Lessons from 250,000 Years of Stock Returns” by Truman A. Clark of Dimensional Fund Advisors. “My stocks are down 30 percent. What are the chances they will come back soon?” “Man, I wish I had been out of stocks for the past three years. How often are stocks […]
Feb. 2004 – Lessons from 250,000 Years of Stock Returns Read More »
A new way to pay for health care that was introduced by the Medicare Reform Act in December combines an insurance component with an intriguing savings kicker. The new plans, called health savings accounts (HSAs) are designed to help individuals save for qualified medical and retiree health expenses on a tax-favored basis. Contributions to these
Jan. 2004 – Health Savings Accounts: Opportunities for Investors Read More »
We have long implored investors to do their best to ignore the hodgepodge of investment advice that saturates the modern media, and instead consider the scientific approach to investing. Below we outline the history of this science, which is rapidly gaining favor with both institutional and individual investors. In particular we hope our readers will
Dec. 2003 – Investing and the Science of Economics Read More »
Investigations into mutual fund misdeeds have multiplied since we addressed the issue in September. The funds we recommend have not been implicated nor do we expect that they will be. However, more than a dozen fund families that market conventional open-end mutual funds have now joined the list of alleged participants in improper trading practices.
Nov. 2003 – (Not So) Mutual Funds Read More »
On Thursday, September 25th, Kodak announced that it would reduce its dividend to a semi-annual payment of $0.25 per share ($0.50 annually) from a semi-annual payment of $0.90 per share ($1.80 annually). The board declared a cash dividend of $0.25 per share, payable December 12, 2003, to shareholders of record as of the close of
Oct. 2003 – Eastman Kodak Cuts Its Dividend Read More »
Much publicized government investigations into mutual-fund practices have been initiated and a wave of shareholder-initiated lawsuits is sure to follow. The allegations are troubling, as the chicanery in question would benefit institutional short-term traders at the expense of long-term individual investors. We are confident that the funds we recommend are not especially vulnerable to these
Sept. 2003 – Fund Shenanigans Read More »
Remember the late 1990s, when we were entering a “new economy” guided by a “new paradigm”? Business cycles were said to be repealed, information technology would expand productivity exponentially, and of course traditional valuations for common stocks (price/earnings and price/book ratios, dividend yield) were obsolete. The party has ended, of course, and though the investing
Aug. 2003 – Brother, Can You Paradigm? Read More »