Dozens of financial, economic and investment articles are posted on munKNEE.com (Your Key to Making Money!) every month to keep readers abreast of the latest information. Below are introductory paragraphs and links to a selection of articles on how to be a more successful investor that you may have missed. Choose what interests you, consider applying some of the suggestions presented, and hopefully reap the financial gains that result in doing so.
By Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), and www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds).
1. Successful Investing Necessitates Avoiding These 5 Emotional Biases
Cognitive biases – those annoying glitches in our thinking that cause us to make questionable decisions and reach erroneous conclusions – are an anathema to portfolio management as it impairs our ability to remain emotionally disconnected from our money. As history all too clearly shows, investors always do the “opposite” of what they should when it comes to investing their own money. They “buy high” as the emotion of “greed” overtakes logic and “sell low” as “fear” impairs the decision making process. Here are 5 of the most insidious biases that will keep you from achieving your long term investment goals. Read More »
2. Average Joe Investors Underperform the Market – Here’s Why
Over the past 20 years, the S&P 500 has produced a 9.2% annualized total return. Over the same period, gold has returned an annualized 6.6%. And bonds? The Barclays U.S. Aggregate Bond Index has returned 5.7%. Based on these figures, what type of return do you think the average investor has achieved over this time period? The answer will shock you. Read on! Read More »
3. Its Time to Stop Trying to Time the Market & Start Playing the Percentages – Here’s Why
Remember the game Musical Chairs? It seems that investors on Wall Street have been playing this game recently, as more and more we are seeing signs that the current bull market may be reaching its final stages. Each new sign that appears represents just one more chair being taken away from the game. The question investors need to ask is “where will I be when the music stops”? Read More »
4. Bubbles: Doing NOTHING Is Often the BEST Response – Here’s Why
The benefits of being able to detect a bubble, when you are in its midst, rather than after it bursts, is that you may be able to protect yourself from its consequences. [Below are possible] mechanisms to detect bubbles, how well they work and what to do when you think a particular asset is in one. Read More »
5. What’s the Best Way to Invest Given Today’s Disturbing World News Headlines?
It’s hard not to see some disconnect between recent disturbing world news headlines and the market’s quiet advance but this disconnect is rational in the short term, but not necessarily in the long term. Here are 3 rules of thumb for how investors can potentially respond. Read More »
6. Should You Replace Your Financial Advisor With A “Robo” Advisor? Here Are the Pros & Cons
In the last few years a new “advisor” has entered the fray – the robo advisor, now being called “automated investment services”. Automated investment services are platforms that automate your investment portfolio and try to help you reduce fees, increase efficiencies and streamline your process through a simple computerized interface. Here’s a look at 4 primary benefits and 4 potential problems to help you decide if such a service is for you. Read More »
7. And You Thought You Understood the Stock Market! Here Are More Insights
The best way to understand how the stock market fluctuates is to study trends of individual stocks and broad market behaviors. I’ve created this infographic to help you do just that. Read More »
8. Political “Blame Game” Will Adversely Affect Your Portfolio – Here’s Why & How
The S&P 500 continues to hit new all time highs, but is your portfolio built on a house of cards? The politics to kick the proverbial can down the road may unleash dynamics that could be hazardous to your wealth. Here’s why and how to protect your portfolio. Read More »
9. 10 Ways To Improve Your Odds Of Not Running Out Of Money During Retirement
A big financial challenge retirees face is ensuring their savings last the rest of their lives. It’s a daunting task for those making the transition into retirement as well as for those already in retirement. While saving as much as possible during your working years is important, the decisions you make in retirement are also very important. Fortunately, there are steps you can take to improve your odds of financial success. Here are 10 of them. Read More »