As a member of the BAM ALLIANCE, we are proud to share the news that Eugene Fama, the “father of modern finance” and professor at the University of Chicago Booth School of Business, was recently awarded the Nobel Prize in Economic Sciences along with fellow professors Lars Peter Hansen and Robert Shiller for their “empirical analysis of asset prices.”
The holidays are coming, and a similar scenario will play out all over the country as adults return to their childhood homes to celebrate with their parents and grandparents. The baby boom generation is now on the precipice of retirement. Yet, thanks to healthier lifestyles and medical advances, baby boomers are witnessing their family members’…
I was forwarded an article that American Funds published touting the superiority of its funds relative to index strategies. The piece contains statements like this: “Some investment managers, American Funds among them, have distinguished themselves with a proven track record of consistently outpacing broad market returns.” And other fabulous statements like this: “Obviously, some are…
All but the most diehard proponents of the efficient-markets hypothesis accept the fact that with valuable inside information, one can earn abnormal returns. That leaves this question: Does access to information that is publicly available provide investors with a sufficient advantage to outperform appropriate risk-adjusted benchmarks (generate alpha)? In other words, is the quantity and…
No investor’s portfolio should consist of just one company — even if that company is Berkshire Hathaway (BRK.A) and its CEO, Warren Buffett, is donned an oracle. For those investors thinking I’m wrong, I hope you’ll consider four logical reasons why you shouldn’t create a portfolio consisting only of Berkshire shares, or even allocating more…
You may have seen the television ads that pose the big question: “What’s your number?” The number refers to the balance you need in your investment account to live comfortably in retirement. If these ads make you wonder how you are doing, you are not alone. A single specific number cannot answer all your financial…
The effects of the financial crisis are still with us. And many books have been written about it. Alan Blinder’s new book “After the Music Stopped,” which focuses on the why it happened, is the best I’ve read so far. Blinder, who brings great credibility as both a Princeton University economist and a former Federal…
This chart displays the results of how frequently the words “happiness” and “stress” have appeared in a sample of books written in English and published in the United States…
The third quarter certainly had its fair share of stress for investors. As the quarter came to a close, it was clear the federal government would undergo a partial shutdown on October 1. As if that was not enough, the debt ceiling deadline loomed. There was concern the federal government might default on Treasury bond principal and interest payments or other financial commitments if Congress and the White House failed to act before October 17…
Today we’ll continue our discussion on the shutdown by exploring further the emotions financial crises cause and the risky behavior that can be generated as a result. One of the reasons investors resort to risky behavior is because they either don’t have investment plans they can stick to, or if they have plans they don’t…
I’ve been getting many calls and emails from investors who are very concerned about the stock market, given the partial shutdown of the federal government and the looming crisis if the debt ceiling isn’t lifted. The concerns are typically greatest among older investors who not only remember the bear markets of 2000-02 and 2008, but…
Jared Kizer is director of investment strategy for the BAM ALLIANCE. In 2008, Jared co-authored the book The Only Guide to Alternative Investments You’ll Ever Need with financial author Larry Swedroe. Jared has written several articles on topics including retirement planning and investment policy.
Carl Richards is the director of investor education for the BAM ALLIANCE. He advises on best practices, marketing efforts and social media.
A call option contract gives the holder the right, but not the obligation, to buy a security at a predetermined price (the strike price) on a specific date (European call) or during a specific period (American call). A call is “in the money” when the current price of the stock is trading above the strike price and “out of the money” when the reverse is true.
For those retiring soon, there are several options to consider when deciding how to handle assets saved in company-sponsored retirement plans.