For most investors, the idea of “getting out at the top” is as illusive an idea as winning the lotto, or licking your elbow. The chances of picking that one magical day just seem too low to be probable. But is it really that tough? Or do most investors simply have a poor understanding of how stock market tops develop?
Whether we like it or not, the value of our portfolios depends heavily on the behavior of financial markets, which, in turn, are intertwined with the economy. Therefore, how and where we invest are dictated in large part by our expectations of future economic growth. As the U.S. and other G7 economies slow, it’s going to permanently change the investment landscape.
If you’ve done your homework and are aware of the risks of owning bonds, then you might have heard the argument that you can eliminate interest rate risk by owning individual bonds and holding them to maturity. Let’s explore whether or not there is any truth to this line of reasoning.
Over the last few years a number of automated investment services, known as robo-advisors, have opened their doors. These services are designed to provide ordinary investors with sophisticated portfolio management at a fraction of the cost of a traditional financial advisor. Their growing popularity has caused a stir in the investment community, but just how good are these robo-advisors?
Jim Cramer’s Actions Alerts Plus is a subscription service offered through TheStreet.com. It allows investors to trade alongside Cramer as he makes investment decisions for his charitable trust stock portfolio. With over 70,000 paid subscribers, the service appears to be very successful. But just how well has the Action Alerts PLUS Portfolio performed over time? And how does Model Investing stack up?
