Investing «

    Why Vanguard is a role model for the fund industry

    Among all fund companies, Vanguard has finished first or second in terms of inflows in all but two of the past 20 years At the risk of sounding like a commercial for the Valley Forge, Pa.-based giant—which controls well over $3 trillion in assets worldwide—the question is, “Why invest anywhere else?” That’s not a plug, but a truism. If Vanguard has become the default standard for fund investors—and it has—then investors should be asking certain questions before picking any other company as steward for their money. Click to Play Ignore the market’s 2013 results and diversify2013 was a great year for stocks, and that has investors doing the exact wrong thing: jumping in blindly. Chuck Jaffe joins us to talk about investors and the “recency” effect. Photo: Getty Images Vanguard...


    This week’s Mutual Fund and ETF stories

    Stocks shot out the lights in 2013, and now there’s a good chance your investment portfolio holds a higher percentage of stocks than you intended, while the amount in bonds, real estate and other assets is proportionately less. Maybe this is no big deal because stocks have been going up. Don’t kid yourself. Smart investors diversify investment risk. Portfolio diversification is important always, but especially after a year when U.S. stocks soared 30%-plus. If you’re following a deliberate, allocated plan, last year’s stellar share-price gains have thrown a wrench in the works. The right move now, from a big-picture perspective, is to trim stocks back to your allocated range — made with regard to your risk tolerance — and add to other, lesser-performing assets. Instead, all too often in...


    A quiet collapse which requires attention

    Best Buy made the news this morning with a drop in sales it referred to as a “speed bump,” but the truth is that it may simply be indicative of a much larger, more ominous move in the retail sector as a whole. But first, let’s take a look at the environment in which the space currently resides. So far in 2014, stocks have been in somewhat of a holding pattern in the U.S., at the same time emerging markets, outside of China, appear to be stabilizing. The long bond on the Treasury side — seen here through the iShares 20+ Year Treasury Bond ETF /quotes/zigman/1480195/delayed/quotes/nls/tlt TLT -0.42% — has countered near-term the “rising rate environment” meme, despite article after article claiming that this will finally be the year of escape velocity for the economy (something...


    Do fundamentals matter anymore?

    Last Friday’s release of the December nonfarm payrolls report by the Bureau of Labor Statistics failed to have a significant impact on the stock market, despite the disappointing news contained in the report. Although economists had been expecting to see that 200,000 non-farm payroll jobs were added during December, the report indicated that only 74,000 jobs were added. The unemployment rate declined from 7.0% to 6.7%. On the other hand, the labor-force participation rate fell to its lowest level since 1978, declining to 62.8% from November’s 63%. The stock market demonstrated almost no reaction to the non-farm payrolls report. The Dow Jones Industrial Average lost only 7 points to finish Friday’s trading session at 16,437 for a 0.05% dip. The S&P 500 rose 0.23% to finish at 1,842....


    ETF Outlook For Tuesday, January 14, 2014 (GDX, PBS, SPY, EGPT)

    The market suffered its worst day of 2014 yesterday with SPY falling by 1.34 percent to the lowest level since the December 20. The one-day drop was the largest since late September for the ETF. The selloff came on heavy volume as all 10 S&P sectors were lower. A combination of a negative call from Goldman Sachs regarding equity valuations and comments from a Fed president led to investors taking profits. Technically the attention turns to the 50-day moving average, which has been a support zone several times over the last year. The indicator is currently at $180.27 and the ETF closed today at $181.68. The other level of support to watch is at the $177 area. PowerShares Dynamic Media ETF /quotes/zigman/383205/delayed/quotes/nls/pbs PBS -0.77% Two big names in the cable industry were moving...


    Needing a correction, or just wanting one?

    Emerging markets — represented here by the iShares MSCI Emerging Markets ETF /quotes/zigman/322623/delayed/quotes/nls/eem EEM -0.50% — looked like they were in the midst of another severe drop until Friday’s gain reversed five straight days of weakness. U.S. small-cap stocks, as seen through the iShares Russell 2000 ETF /quotes/zigman/260873/delayed/quotes/nls/iwm IWM -0.35% , despite being extended, are now positive year-to-date while multinational large-caps remain slightly lower. The most powerful mover thus far has, surprise surprise, ended up being longer-duration Treasurys, repped by the iShares 20+ Year Treasury Bond ETF /quotes/zigman/1480195/delayed/quotes/nls/tlt TLT -0.42% , which staged a huge rally on the heels of Friday’s weak payroll report. Yes, inflation expectations...


    Why Vanguard is a role model for the fund industry

    Among all fund companies, Vanguard has finished first or second in terms of inflows in all but two of the past 20 years At the risk of sounding like a commercial for the Valley Forge, Pa.-based giant—which controls well over $3 trillion in assets worldwide—the question is, “Why invest anywhere else?” That’s not a plug, but a truism. If Vanguard has become the default standard for fund investors—and it has—then investors should be asking certain questions before picking any other company as steward for their money. Click to Play Ignore the market’s 2013 results and diversify2013 was a great year for stocks, and that has investors doing the exact wrong thing: jumping in blindly. Chuck Jaffe joins us to talk about investors and the “recency” effect. Photo: Getty Images Vanguard...


    Needing a correction, or just wanting one?

    Emerging markets — represented here by the iShares MSCI Emerging Markets ETF /quotes/zigman/322623/delayed/quotes/nls/eem EEM -0.50% — looked like they were in the midst of another severe drop until Friday’s gain reversed five straight days of weakness. U.S. small-cap stocks, as seen through the iShares Russell 2000 ETF /quotes/zigman/260873/delayed/quotes/nls/iwm IWM -0.35% , despite being extended, are now positive year-to-date while multinational large-caps remain slightly lower. The most powerful mover thus far has, surprise surprise, ended up being longer-duration Treasurys, repped by the iShares 20+ Year Treasury Bond ETF /quotes/zigman/1480195/delayed/quotes/nls/tlt TLT -0.42% , which staged a huge rally on the heels of Friday’s weak payroll report. Yes, inflation expectations...


    ETF Outlook For Tuesday, January 14, 2014 (GDX, PBS, SPY, EGPT)

    The market suffered its worst day of 2014 yesterday with SPY falling by 1.34 percent to the lowest level since the December 20. The one-day drop was the largest since late September for the ETF. The selloff came on heavy volume as all 10 S&P sectors were lower. A combination of a negative call from Goldman Sachs regarding equity valuations and comments from a Fed president led to investors taking profits. Technically the attention turns to the 50-day moving average, which has been a support zone several times over the last year. The indicator is currently at $180.27 and the ETF closed today at $181.68. The other level of support to watch is at the $177 area. PowerShares Dynamic Media ETF /quotes/zigman/383205/delayed/quotes/nls/pbs PBS -0.77% Two big names in the cable industry were moving...


    Do fundamentals matter anymore?

    Last Friday’s release of the December nonfarm payrolls report by the Bureau of Labor Statistics failed to have a significant impact on the stock market, despite the disappointing news contained in the report. Although economists had been expecting to see that 200,000 non-farm payroll jobs were added during December, the report indicated that only 74,000 jobs were added. The unemployment rate declined from 7.0% to 6.7%. On the other hand, the labor-force participation rate fell to its lowest level since 1978, declining to 62.8% from November’s 63%. The stock market demonstrated almost no reaction to the non-farm payrolls report. The Dow Jones Industrial Average lost only 7 points to finish Friday’s trading session at 16,437 for a 0.05% dip. The S&P 500 rose 0.23% to finish at 1,842....