Archive | January, 2016

Will the FANG Bite?

25 Jan

There are some eerie similarities between today and the 2000 “dot com” bear market. In the period leading up to the late 2000-02, the market was led by four large tech stocks – Microsoft, Dell, Cisco and Intel. As groups of alike stocks tend to do, they took on a nickname from investment analysts – [...]

Investing Misconceptions Demystified

18 Jan

A November 2015 survey on investment performance and risk revealed that many of us hold misguided or even wholly incorrect views on investing. TIAA-CREF’s survey included 1,000 investors and highlighted three glaring misconceptions: Focus on the short-term When choosing investments, 47 percent of respondents said the one-year return was their key decision criterion. Even more [...]

Save (a lot) More, or Roll the Dice

11 Jan

The long-practiced strategy of generating retirement income from U.S. Treasury investments (i.e., bonds) is in danger of being reduced to irrelevance because of the Fed’s low rate policies. A recent study shows that retirees now need more than $1 million in retirement savings to get half their income from low-risk Treasury investments. Back in the [...]

3 R’s for 2016: Rates, Risk and Recession

4 Jan

It finally happened – the Fed raised rates. The overdue move is an official sign of economic recovery. It’s also a sign that the Fed is tightening its belt (despite commanding a multi-trillion dollar portfolio). In its pledge to maintain accommodative economic conditions, the Fed proved less dove-ish, but not quite hawkish. The zero-percent policy [...]