New Problem Child of Turkey

It seems like there is always one country or another causing stress on financial markets.

There was Greece, Italy, Spain, and just when it seemed like these problems were going away, now Turkey and other emerging markets are at risk.

Many investors are likely to wonder, “Will there ever be a time when everything is just normal and stable.”

Be careful what you wish for. Remember how great everything seemed in 1999. Unemployment was low. International tensions were low. 9-11 ...

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Empowered to fail by Chuck

My wife recently commented to me about the Charles Schwab ad campaign. You know, those ads with the “Talk to Chuck” slogan. They encourage you to “take control of your destiny,” and “make your own decisions.”

They are well done. They leave you with a feeling of inspired empowerment. The feeling is a fallacy, but the ads generate it nonetheless – so hat is off to whatever advertisement firm came up with those.

Throwing darts at stocks in a ...

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Gone Fishin Portfolio – Doing it Live

Live investing is completely different from casual investment theorizing.

Yesterday I noted that the “Gone Fishin’ Portfolio” underperformed the S&P 500 by 21.48% in 2013.

What about longer term numbers?

Here are the 3 year returns:

Gone Fishin’ Portfolio     6.88%

S&P 500                             16.18%

Difference                        -9.30% per year

And 5 year returns:

Gone ...

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Gone Fishin’ Portfolio 2013 Returns

Seen the 2013 returns for the “Gone Fishin’ Portfolio?”

They don’t seem to have posted it on their website yet. I wonder why?

No matter…because I can calculate the returns of their portfolio for 2013 myself.  Here it is:

2013 Returns

Gone Fishin’ Portfolio            10.91%

S&P 500                                     32.39%

 Difference                 ...

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When a Market Commentator knows NOTHING

Here is Bob Doll, who apparently knows NOTHING about how investment markets operate.

Click here to watch the video

This is disturbing stuff. He points out that active managers, collectively, have historically done a bad job of beating the market indexes…..but he thinks this will change in 2014.

He doesn’t realize that it is simply a mathematical inevitability that they lose to the indexes. These managers all buy and sell from ...

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Coinye / Kanye – the Death Knell of Bitcoin

This is hilarious. Some new digital cryptocurrency has sprung up, called Coinye, in jest after Kanye West. West’s lawyers are threatening a lawsuit. Click here for an article.

The possible lawsuit is somewhat comical, but there are much broader implications here.

Bitcoin already has competitors, and more are popping up every day. Yes, other people can make digital currencies that will compete. It is similar to the way competing banks had ...

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Last 20 years – How Discipline Can Breakdown

Two keys of investing:

1. Pick smart investments to start with

 2. Stay disciplined

Discipline is a lot harder than it seems.

Let’s take a look at a mutual fund, DFA US Small Value (DFSVX) vs. the S&P 500 over the last 20 years. The fund’s return….12.75% annualized. Your money would have grown over 10 times if you just stayed put, despite crashes in 2000 and 2008.

S&P vs DFSVX since 1994 More →

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