With the end of the year in sight, it’s a good time to consider some investment housekeeping. What’s worth your attention? Last week, I discussed the importance of asset allocation. According to the research, this is the single most significant portfolio decision you can make. But while asset [...]
An antacid problem
There’s an irony in the world of personal finance: The activity that is the most entertaining—picking stocks—is also, according to the data, one of the most counterproductive. Meanwhile, making asset allocation decisions is more akin to watching paint dry, and yet—according to the data—that’s one of [...]
Sea change?
A key conundrum for investors is as follows: On the one hand, the data on tactical trading is clear. It tells us that making frequent changes to a portfolio is a bad idea and can damage returns. But on the other hand, we shouldn’t be so wedded to the status quo that we’re unwilling to ever make a [...]
The first rule in personal finance
What’s the first rule in personal finance? To answer this question, let’s look at the financial lives of two notable individuals, starting with musician MC Hammer. When Hammer gained fame in the 1980s, he made millions. But unfortunately, his spending quickly outpaced his income. Hammer bought 19 [...]
To invest in commodities
This week, someone asked me if he should own pork bellies in his portfolio. While he was kidding, this does get at a real question: Should you own commodities? Those who favor investing in commodities typically cite two benefits: First, commodities are seen as a bulwark against inflation. This is [...]
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