When it comes to investing in stocks, riskier is not better. More accurately: Higher volatility does not equal higher rewards over time.
Building wealth through investments isn’t so easy these days. During the nearly two-decade-long market boom that ended in 2009, it was much simpler to invest and forget it. But now, many investors are beginning to realize that safety won’t make them rich, even if they do sleep better at night. In spite of the drubbing
When the stock market resembles nothing so much as a sinking ship, the urge to flee can be strong. Indeed, in recent weeks, people have been making their egress from stocks. The Investment Company Institute, or ICI, reports that equity mutual funds lost $1.99 billion in the week ending September 14. For nervous investors, there
It’s not easy these days to hold the line on equity investing with all the volatility we’ve seen in the stock market this year. The wealthy are responding by allocating more of their portfolio to hedge funds, according to a survey by advisory firm Rothstein Kass, which reported that nearly 90 percent of the 151
Last month, New York billionaire Carl Icahn made $100 million on a $2-billion bet that the benchmark Standard & Poor’s 500 Index would decline. Nice work if you can get it. An article in Investment News said the 75-year-old investor turned bearish in mid-August as the European debt crisis loomed and the outlook for the
The stock market wrapped up yet another week, and this time it was a crazy one. The Dow Jones Industrial Average closed the week at 11,245.71, up 5.3 percent from the low hit last Thursday. The Standard & Poor’s 500 index finished the week up 5.2 percent from last Thursday. Understandably, investment advisers had their hands
The market malaise has not only wreaked havoc for you and me and everyone else involved in retirement planning — the big institutional heavyweights were also dealt heavy losses in recent weeks. In fact, an article in today’s Wall Street Journal suggests that mutual funds and pension funds are to blame for much of the
A few pieces of less than gratifying economic news came out this week. On the heels of Memorial Day, the Conference Board’s Consumer Confidence Index showed a drop of 5.2 points to 60.8. And skittish consumers are never a good thing. The ISM manufacturing index also fell, recording the lowest reading of the year at 53.5
You probably don’t need an official confirmation to know there’s a lot of anxiety in the stock market right now. But here’s one anyway: It’s called the volatility index, (VIX) and it indicates the price investors will pay to insure themselves against big market moves. It’s traded on the Chicago Board Options Exchange, and reached
Just when we thought we’d seen enough of an upward trend to breathe easier, a freefall in the stock market leaves us gasping. The big question: What do we do now?