Skarbeck: Next wave of regulators needs to keep reforming
Since last year, there have been several personnel changes in key financial and regulatory positions in the federal government.
Investing Column
Articles
Kim: ‘David and Goliath’ offers lessons for business, life
At some point, you’re likely to face a competitor with vastly superior size, strength and resources. You’re the underdog, but if you’re willing to wage an unconventional battle, outwork your opponent and don’t fear social disapproval, victory can be yours.
Skarbeck: Market has way of looking beyond today’s headlines
The stock market has a remarkably perceptive ability to see past inconsequential issues that sometimes dominate the investment environment and instead peer ahead into the future.
KIM: New financial bet involves tickets to Super Bowl
Do you think the Indianapolis Colts will play in Super Bowl XLVIII on Feb. 2? Would you love to join them, but don’t want to shell out thousands of dollars and multiples of face value on StubHub? You can purchase an option granting you the right to purchase a ticket to the Super Bowl at face value, if the Colts qualify.
Skarbeck: There are no substitutes for buying assets cheaply
The recent white paper issued by investment firm GMO’s James Montier ridicules some of the “innovations” that are popular in the investment field. His criticism addresses concepts like smart beta, risk parity, and real asset inflation hedges.
Kim: Investors must sidestep unnecessary fund taxes
Mutual funds must conform to U.S. tax law to maintain their status, making this a tricky time of year for fund investors holding their shares in taxable accounts (i.e., not in 401(k) or IRA accounts).
Skarbeck: Stocks still the best bet among investor choices
Many observers are raising warning flags that stocks are overvalued, and some even say a market bubble is forming. A review of the evidence, in our opinion, doesn’t support their alarm.
Kim: Save your riskiest bets for play-money portfolio
Having a small “play money” portfolio can help fulfill your fantasy of making a quick killing without endangering your retirement funds.
Skarbeck: Controversy dogs some public-pension programs
Heated talks are taking place in public-pension boardrooms across the country over issues like risk levels of investments and fees paid to fund managers.
Kim: Give gifts toward college rather than an Xbox One
An Indiana CollegeChoice 529 plan account is a gift that will last a lifetime, and, if you’re an Indiana resident, the state will pick up 20 percent of the cost.
Skarbeck: Use these financial tables to figure retirement goals
There are two key financial tables that can help you plan for retirement. They can be found on the Internet. With them you can input two simple factors—period invested and interest rate earned—and quickly see how your net worth is affected.
Kim: Our failures pave way for a lifetime of success
Successful people’s paths are often littered with failures. It isn’t that they are immune to failure; it is how they react to and apply the lessons learned from their failures that ultimately leads to their success.
Skarbeck: Firms with high ratios could take a tumble
On occasion, it is interesting to study the stocks of businesses that are outliers on the bell curve of business valuation. For a value investor, that means looking at stocks selling at huge multiples above traditional valuation yardsticks.
Kim: Rising confidence should lift stocks and economy
The primary impact of confidence on the economy is simple. If people think the economic future will be good, they’ll spend and invest. Thus, things will be good.
Skarbeck: SEC turns up spotlight on pay for top brass
The Securities and Exchange Commission has proposed a rule that would require large public companies to disclose the total annual compensation of their CEO, the median annual compensation of all their employees (excluding the CEO), and the ratio between these two figures.
Kim: Twitter using JOBS Act to alter IPO playbook
The Sept. 12 tweet read, “We’ve confidentially submitted an S-1 to the SEC for a planned IPO. This Tweet does not constitute an offer of any securities for sale.” Twitter thus made a very public announcement that it had made a private filing with the Securities and Exchange Commission. In 140 characters or fewer, Twitter instantly […]
SKARBECK: Rising interest rates not always bad
Some market constituents benefit from higher rates. For example, payers of fixed cash flows—the consumer who locked in a loan at a lower fixed-rate, companies that issued bonds at lower rates and insurers that pay annuitants fixed rates.
KIM: Fraudsters want to steal from your self-directed IRA
Custodians of self-directed IRAs will permit a broader universe of investments, such as real estate and unregistered securities. Because it is unlikely the custodian will investigate whether the unregistered security or promoter are legitimate, you can see why fraud promoters love self-directed IRAs.
Skarbeck: Views abound on how to structure portfolios
There are many approaches and differing opinions on the best way to manage your portfolio. The conclusion comes down to which style or philosophy leaves you feeling the most comfortable while you fully understand the cost, risks and potential performance of that strategy.
Kim: Steer clear of leveraged exchange-traded funds
If you are confident the S&P 500 will be 20 percent higher a year from now, you might think an exchange-traded fund (ETF) whose objective is to provide two times or even three times the return of the S&P 500 would be just the ticket to earn 40 percent (two times) or 60 percent (three times). You couldn’t be more wrong.