Stocks

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Chart: How Have World Stock Markets Changed Over The Past 100 Years?

Interesting graphic from a Credit Suisse report comparing the relative size of stock markets in 1899 vs. 2016 (great for a history course):

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Questions to ask:

Question: How Much Should You Save For Retirement?

I heard this on Marketplace.org last night and thought it was worth sharing. It seems the old “rule of thumb” of  saving 10% for retirement needs to be updated:

By |February 7th, 2017|Current Events, Index Funds, Investing, Question of the Day, Research, Stocks|

Looking for Web Quests? Here Are 25 Great Ways To Teach Online Research!

What’s a Web Quest? We know how important it is for young people to learn to use the web as a research tool. In this era where the lines between advertising and editorial are increasingly blurred, students need to know where to look to find reliable sources of information and advice. They need to cast a skeptical eye and know the right questions to ask. Given all the information available out there, we need to give them practice so they can discern the signal from the noise.

That’s where these Web Quests come in. Each presents a central question for students to answer and some guidance on where they might find answers. Through these activities, they will learn about the business models of comparison websites, review legislation that impacts financial services or look for tips on how to improve their credit score. By teaching students how to drive their own learning, you are giving them an essential life skill too. Enjoy these 25 web quests (which appear as Activities in our various units)!

By |February 2nd, 2017|Research, Stocks, Teaching Strategies, WebQuest|

Videos: What Was Considered Good Financial Advice In the 1940s and 50s?

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Put this in the category of “not so current events.” Something about my impending birthday has me getting nostalgic for the “good ole days.” I stumbled across this trove of videos from the 1940s which would have been the financial advice that my teenage Mom would have been given. Here are some of the highlights that I thought you would enjoy (with questions):

  • Keeping a Budget: Your Thrift Habits (it’s 10 minutes long, but the first five minutes will give you plenty to discuss):
    • How was Ralph able to buy his camera?
    • What was the budget method that worked for Ralph (full disclosure: this was how I kept track of my newspaper route revenues)?  How did he track his progress toward saving for his camera?
    • Is it easy to make a budget work? Why or why not?
    • What are Jack’s sources of income?
    • What are Jack’s regular expenses? irregular expenses?
    • Why did Jack find it difficult to save?
    • What would be on your list of “Watch these expenses?”
    • Identify an item that you would like to save for and break it down to how much you need to save per week.
By |January 23rd, 2017|Budgeting, Checking Accounts, Investing, Savings, Stocks, Video Resource|

Question: Do Active Investment Managers Buy Their Own Funds?

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Incentives matter when it comes to financial products. Hat tip to Meb Faber whose podcast I was listening to earlier today and reminded me about this 2008 research report titled “Do Managers Eat Their Own Cooking?” from Russ Kinnel at Morningstar. As the title suggests, Kinnel analyzed whether mutual fund managers actually invest their money in their own funds. Recall that the promise of active management, and the reason that investors pay fees of around 1%, is that they can beat the market (but, alas, almost none do!). Recall also that getting the market return through an S&P500 index fund costs about 0.10-0.15%. Ok, so active managers charge high fees which makes it difficult for them to beat the market. Guess what, someone has figured this out, and it’s not who you might expect…it’s the actual managers running the funds. How do I know? Well, Kinnel found the following:

“At U.S.- stock funds, 47% report no manager ownership. And it gets worse from there. Fully 61% of foreign-stock funds have no ownership, 66% of taxable bond funds have no ownership, 71% of balanced funds put up goose eggs, and

By |January 11th, 2017|Index Funds, Investing, Mutual Funds, Research, Stocks|

NGPF Podcast: Tim Talks to Allan Roth, Author, Columnist and Financial Advisor


Thanks to Allan Roth for recently joining the NGPF podcast. I got to know Allan a few years ago when I needed an advisor to help me “tune-up” my portfolio. I appreciated his candor, his analytical chops, his thoughts on asset allocation, his laser focus on fees and his willingness to challenge some of my assumptions. One of his best suggestions was that I create an investment policy statement which serves as a guide to my asset allocation during those turbulent market conditions that try mens’ (and womens’) souls. He wrote a provocative book that I recommend, How A Second Grader Beats Wall Street, which describes the simple strategies needed to be a successful investor (you will find out exactly who this wise second grader is during the podcast). Listen to this podcast and you’ll walk away with some ideas to make you a better investor. Enjoy!

Details:

Dow 20,000: Does It Matter?

Investing commentators are breathless as the Dow Jones Industrial Average closes in on the 20,000 mark. Here’s a smattering of the recent clickbait, I mean, headlines (12.5 million results on Google!):

The Dow closed at 19,963.80 on Friday, January 6th. Ok, let’s just say there is a very high likelihood it crosses that magical 20,000 mark this week. I don’t think I am going out on a limb in predicting that (and you know how much I hate prognosticators!). So, back to the original question, does it matter? 

Question: What Company Was Strongest Performer in the S&P500 In 2016?

Choices:

A. Amazon

B. Google

C. Tesla

D. Nvidia

Answer: Drumroll please…a company most have never heard of, D. Nvidia!

From Financial Times:

By |January 3rd, 2017|Article, Current Events, Investing, Question of the Day, Research, Stocks|