"I have found that the importance of having an investment philosophy—one that is robust and that you can stick with— cannot be overstated. David Booth The US stock market has delivered an average annual return of around 10% since 1926.[1] But short-term results may vary, and in any given period stock returns can be positive, negative, or flat. When setting expectations, it's helpful to see the range of outcomes experienced by investors historically. For example, how often … [Read more...] about The Uncommon Average
The Index Bogeyman
The argument that increased usage of index funds may be distorting market prices hinges on the premise that indexing reduces the efficacy of price discovery. But should the rise of index funds be a cause of concern for investors? Over the last several years, index funds have received increased attention from investors and the financial media. Some have even made claims that the increased usage of index funds may be distorting market prices. For many, this argument hinges on the premise … [Read more...] about The Index Bogeyman