Is it best to get out of debt before you start investing? This is a common question that comes up quite often. The issue is actually fairly complex considering the many different types of debt and investment options available. In general, the answer is you should pay off your debt before investing. Here are some … Read moreShould You Pay Off Your Debt Before Investing?
None of the alternative investments provided sufficient risk reduction to soften the impact of the Bear Market. Alternatives such as Commodities, Equity REITS, International Equities doesn’t seem to be working. The U.S. Treasuries were one of the few asset classes that really provided sufficient diversification. What went wrong? First let’s address the question of “Diversification … Read moreCorrelation of Returns: The Reason Why Diversification Didn’t Work
One of my rules of prudent investing is that no one should own individual stocks. That has far more to do with speculating than investing. Instead own only mutual funds (or ETFs) that own all the stocks within a particular asset class (e.g., small caps, value stocks, emerging market stocks, etc.). Then build a globally … Read moreShould You Own Individual Stocks?
In this Ask The Expert With Larry Swedroe article, Zapp challenges the legitimacy of Modern Portfolio Theory citing Warren Buffett as a rule breaker. So which is it, Modern Portfolio Theory or Warren Buffett? Here’s the question from Zapp: Other than by taking the self-denigrating stance: “I am not an above average investor”, how can … Read moreWarren Buffett versus Modern Portfolio Theory
In this Ask The Expert With Larry Swedroe article, the reader, Murali, is wondering if she could use the Vanguard Total World Stock ETF (VT) to simplify and diversify her investment portfolio. Vanguard is known for its high quality and low cost investment products, and the Total World Stock ETF should provide most of the … Read moreLow Cost Diversification With Vanguard Total World Stock ETF (VT)?
In this Ask The Expert With Larry Swedroe article, the reader (Edward) is wondering what’s the best way to rebalance his investment portfolio and increase his fixed asset allocation. Due to the stock market crash, he is reluctant to sell his beaten-down stocks to increase his bonds allocation. Is it better just to allocate new … Read moreWhat is the Best Portfolio Rebalancing Strategy?
In this Ask The Expert With Larry Swedroe article, the reader (Larry) lost a lot of money in the stock market. He detailed his plight and complained about his full service brokerage firm. It’s 2009 and he only have half of what he did a few months ago. What should he do? Here’s the question … Read moreLost Money In The Stock Market, What Should I Do?
Treasury Inflation-Protected Securities (TIPS) is a type of Treasury securities that provides protection against inflation and real return. I don’t know if TIPS is the best bond to buy or not — I don’t think that is the right way to think anyway, e.g., it is better to have a good investment policy and asset … Read moreTIPS Bonds: How Treasury Inflation-Protected Securities Work
I was reading Larry Swedroe’s The Only Guide to Alternative Investments You’ll Ever Need the other day, I have been thinking about adding commodities to my portfolio. No, I am not going to go out and buy a futures contract; however, I have been thinking about adding commodities to my investment portfolio as part of … Read moreCommodities: How to Invest in Commodities and Why
Bonds are debt instruments issued by companies or the government that pays a certain amount of interest, and the full principal amount at the maturity date. The interest rate for bonds depends on a variety of factors, such as the current market interest rates, the maturity date, and the creditworthiness of the issuer. In general, … Read moreWhen Is The Best Time to Buy Bonds?