Perspective and Patience
I read a quip in the local paper over the weekend: The stock market takes the stairs up but the elevator down. As I felt the elevator begin its descent this week, my stomach lurched a bit, but I kept coming back to the fact that good investing requires discipline and a bit of courage.
Interest Rate "Liftoff"
Excerpts from an interview with Vanguard's Global Chief Economist Joe Davis and Senior Economist Roger Aliaga-Díaz about their projections for the U.S. interest rate "liftoff" and whether or not the market may have priced in rising rates.
Keys to Investing Success
Core investing principles are united by a common theme: Focus on the things within your control. By attending to the things you and your advisor can influence, rather than uncontrollable factors such as the markets, the economy, or the performance of an individual security or strategy, you give yourself the best opportunity for investing success.
Way Down, Way Up, Rebalance!
Since the U.S. stock market hit bottom on March 9, 2009, during the Great Financial Crisis, the S&P 500 Index had risen a stunning 248% as of the first quarter of this year. In little more than six years, the present bull market has broken several records and surpassed history’s larger bull markets.
Inflation Investing
Have you wondered if the current low-inflation environment warrants a change in the way investors plan for potential future inflation? Two bond experts from Vanguard discuss planning for inflation.
The Perils of Deflation
Prices and wages can move in one of two directions; up or down. Rising prices are known as inflation. Falling prices mean deflation. American's has lived through an inflationary period for so long that few understand the dangers of deflation.
The Case for Index Investing
Since its beginnings in the early 1970s, indexing as an investment strategy in the United States has grown rapidly and has performed favorably in relation to actively managed investment strategies. Indexing has many recognized advantages: low costs, broad diversification, minimal cash drag, and—for taxable investors—the potential for tax-efficiency.
Having THE Money Talk
Many families have an unspoken taboo in regards to talking about money. Should you have a conversation with your heirs about your finances and how should you go about it.
Lower Future Returns?
What kind of returns should investors reasonably expect from their portfolio in the current environment? Vanguard's Chief Investment Officer, Tim Buckley and Chief Executive Officer, Tim McNabb discuss the possibilities for the future in this recent interview.
Can't Catch It
Chasing after the latest hot segment of the market or mutual fund is a lot like trying to drive a car forward while only looking at the rearview mirror. What has already passed does not tell you what lies ahead.
Most Must Lose
At any given moment, the stock market is basically a zero-sum game. This is a big part of the reason that active portfolio managers have such a difficult time outperforming their benchmarks.
Video: Income from Total Returns
Low bond yields have caused concern for those needing a stream of income from their investment portfolio. There is another, more holistic, option that was discussed by Vanguard's Chuck Riley in this short video taken from a live webinar.
Bond Indexing Efforts
It's not just pushing buttons to fire up a computer program. While not a difficult or expensive as operating an actively-managed fund, creating a bond index fund requires effort. Go behind the fund management scenes with Josh Barrickman, manger of Vanguard Total Bond Market Index fund.
Video: Should You Use Alternatives?
In this 5-minute video, a panel of Vanguard's U.S. and international investment strategists discusses alternative investments; what they are, how they work, and whether you should consider investing in them.
Bond Forecasting Failures
U.S. bond yields have been below their historical long-term averages for some time now. But history has shown that just because yields are low doesn't mean that they have to move higher.