Posts Tagged ‘mutual funds’

ETFs vs. Mutual Funds

ETFs vs. Mutual Funds

By The Banker | Blog Posts, How Not To Invest, Investing, Texas

Mutual funds and exchange traded funds (ETFs) do pretty much the same thing, which is allow an investor, with a single purchase, to own a diverse pool of assets – usually stocks or bonds, but also sometimes commodities, currencies, futures, bank loans or other financial exotics. Since they mostly do the same thing, the most [&hellip

More On Actively Managed Equity Mutual Funds

More On Actively Managed Equity Mutual Funds

By The Banker | Blog Posts, How Not To Invest, Investing, Personal Finance, Wall Street

Lately I’ve taken to saying boldly and loudly to anyone who asks my opinion (and some who don’t!) that every academic study ever done on actively managed (high cost) mutual funds vs. passively managed index (low cost) mutual funds shows that, in aggregate, the actively managed funds under-perform the passively managed funds by approximately the [&hellip

Book Review: A Random Walk Down Wall Street

Book Review: A Random Walk Down Wall Street

By The Banker | Book Reviews, How Not To Invest, Investing, Personal Finance, Wall Street

First published forty years ago, A Random Walk Down Wall Street by Burton G. Malkiel is one of those books – much like Benjamin Graham’s The Intelligent Investor – more referred to than actually read. Malkiel’s central thesis – that equity markets are so efficient at pricing stocks relative to their risk that the vast majority of [&hellip

The Giffen Good Concept Applied To Investments

The Giffen Good Concept Applied To Investments

By The Banker | Blog Posts, How Not To Invest, Investing, Personal Finance, Wall Street

Editor’s Note: A version of this post appeared in the San Antonio Express News “So…Money” column. The only “C” I got in college was in Intermediate Macroeconomics, but I remember one economics term that I really loved — the “Giffen Good.” With ordinary, rational, economic behavior, we expect that when prices go up, people buy [&hellip

New Highs in the Dow Part III - What Should I Do?

New Highs in the Dow Part III – What Should I Do?

By The Banker | Blog Posts, Investing, Personal Finance

Please see New Highs in the Dow Part I – Indifference and Inevitability And New Highs in the Dow Part II – What’s going to happen? ——————————————— First, if you’re actually an investor1  in public securities2, take a moment to be sad about these past two weeks and all the new highs hit in the Dow [&hellip