Bonds for Inflation – Series I Bonds
The 9.62% interest rate looks high; however, the *real* interest rate is about the same as it has always been… effectively zero – or negative when taxes are taken into account.
Does Low (Minimum) Volatility Investing Have the Potential to Persist?
Paradoxically, low-risk stocks historically have outperformed higher-risk stocks over the long run. They outperformed due to the behavioral biases of investors. Dr. Daniel Crosby, behavioral finance expert, has devised a three-part test (The Crosby Test) to determine if an investable idea has the potential to persist. The criteria are: The idea must be sensible. The […]
A Potential Effect of Risky Funds on a Portfolio
Vanguard had a fund that invested in precious metals and mining stocks that had performed so poorly in the past 10 years, that Vanguard decided to rename the fund and completely change its investment strategy. This shouldn’t be a complete surprise, as $10,000 invested in the fund in 2008 would be worth just $5,051 at the […]
A Canadian Cannabis Producer Offers a Harsh Lesson About Investing Frenzies
Amazon closed today at $1,934.36 per share. Wouldn’t it have been nice to have had the foresight to purchase this stock back in 1997 when it traded for less than $2 per share? A $10,000 investment at that price would be worth almost $9.7 million today. Unfortunately, this kind of wishful thinking can get investors […]
