This month we assess so-called “socially responsible investing” (see article within), one of the fastest-growing sectors of the money-management industry. As our research unfolded, we came across a unique fund family that takes the opposite approach. Though we do not recommend it for serious investors, the fund drives home the point that the fund industry […]

Risk-Free Rate of Return: the return on a risk-less asset, often proxied by the rate of return on Treasury securities. Students of business and economics are taught, invariably, that buyers of U.S. Treasury bills, notes or bonds can be certain of receiving the interest payments they are owed, as well as the face value of

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,

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,

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

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

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

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

Capital markets have undergone a dramatic transformation since 1952. That year eventual Nobel laureate Harry Markowitz tossed aside the widely held notion that securities should be evaluated by their individual characteristics. He asserted instead that the rational investor would focus on how a security impacted the overall risk and return of his portfolio. Fifty-four years