stocks

The Market May Be Irrational, But You Shouldn’t Be

I woke up to a shock as I went online to check my banking. On the screen, one of the equities in my account was showing a value of $47,025,120.00. Yes, $47 million. As delightful a fantasy as that is, I had no real temptation to print off the screen and go take out a […]

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Welcome, Cracked.com Readers!

Now this is a pleasant, if unlikely surprise. If you’re coming to the site from Cracked.com’s The 6 Most Statistically Full of Shit Professions, you’re certainly in for some fun.

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Stock Picking Experts vs. Coin Flippers: Who Wins?

At this point, if you still think there really are people who are experts at picking stocks, I’ve got a bridge to sell you in Brooklyn. But I’m going to pile it on with even more irrefutable evidence that stock picking experts don’t exist, and if you’re paying someone to actively manage your investments, you’re […]

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The Best Argument Against Stock Picking Experts

You know that there’s no such thing as a stock picking expert and that most actively managed mutual funds can’t even beat their indexes. So if you’re being sold on investing with a broker or in a “proven” mutual fund, there’s a legitimate question you have to ask yourself: why? Obviously, the salesman is trying […]

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There’s No Such Thing as a Stock Picking Expert

There’s no such thing as a stock picking expert. There’s no such thing as a stock picking expert. There’s no such thing as a stock picking expert. Say it with me … “There’s no such thing as a stock picking expert.” And it’s never been more obvious than now. It’s basically been proven that monkeys […]

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The Newest Investing Scam You Need to Know About

There’s a reason why index funds are your best choices for investing: they don’t try to time the market they have low management costs they own an entire segment of the market (or the whole market), so there’s no stock picking involved This is not news. Study after study has proven that index funds are […]

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Weekend Linkage: 10,000, 401(k)s and Closing Costs

Although the week ended with the Dow Jones under 10,000, when it passed the mark on Wednesday, I sent out this tweet: The Dow is over 10,000. Let’s party like it’s October 2008! Of course, I was joking, but it is a significant milestone — at least for day traders, who often react only to […]

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If You’re Going to Trade Stocks, Read This First

Regular readers of Automatic Finances will know well that we advocate long term, buy-and-hold investing. Overall, for both small and large investors, it remains the most stable and consistent approach to both wealth creation and preservation. Short-term trading, in comparison, carries considerable risks to an investor’s capital. That’s why it’s important to make that distinction […]

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Can Monkeys Pick Stocks Better than Experts?

We’ve spent plenty of time explaining why investing in passive, low-cost index funds will out-earn actively managed funds in the long-run, and that most fund managers can’t even outperform the indexes they’re trying to beat over time. The underlying theme of these posts is that stock market “experts” aren’t really experts at all. They may […]

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The Pros and Cons of Exchange-Traded Funds (ETFs)

Exchange-Traded Funds (ETFs) are, as their name implies, funds that trade on an exchange. Traditionally, ETFs have been baskets of stocks that track broad indices. More recently, ETFs have launched that track exotic strategies or asset classes with the goal of allowing retail investors to participate in institutional strategies. Why ETFs? The ETF structure is […]

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