6 Ways Dividends Are Important.

Dividends are an important part of investing – especially if you are an income or value investor. Investing for income is all about dividend yield, but dividends have many other virtues – even if generating income from your investments isn’t of paramount concern.

Dividends are a large part of a stock’s overall return. In fact, dividends [...]

Large Cap Stocks Poised for Growth? Is this 1983 All Over Again?

I just read this Morningstar article, titled 1983 Revisited that I thought I’d share. The author makes the case for large cap stocks by drawing a number of comparisons to the early 1980’s and 2008-2010, and what happened from 1983-1987.

By now, the parallels to the early 80’s are seemingly everywhere. Mostly by way of comparing [...]

What Lost Decade?

Much has been made of the so-called “lost decade” of investing during the period of 2000-2010. But what does the “lost decade” mean? Is it true and does it even matter?

The idea behind the lost decade is that investors either made no money or lost money over that period a 10-year period. After all, the [...]

Why Is The Stock Market Going Up?

Unemployment is still around 10%, foreclosures are rising and inflation, taxes and interest rates have nowhere to go but up. So why is the S&P 500 up almost 75% and the Nasdaq nearly 90% from a year ago?

I’ve wondered this for quite a while, and it seems to be the topic du jour on wall [...]

Time To Check Your Stop-Loss Trigger Points!

As this article from MarketWatch points out, optimism about the U.S. economy is on the rise.

That’s a good thing, right?

Not if you’re a contrarian investor. If look to be greedy when others are fearful and pull back when others are greedy, you may want to take note of this optimism. The stock market has been [...]

The Danger of Short-Term Performance.

Every investor ought to have the phrase “past performance is no guarantee of future results” tattooed backwards on their forehead – backwards so they see every morning when they look in the mirror. But sadly, that doesn’t happen. And perhaps because of this fact, it’s one of the most ignored pieces of investment advice around.

I [...]

Beware the Ides of March?

Technically speaking, the Ides of March is nothing more than a date on the Roman calendar. March 15th, to be exact. But it has sinister implications because it just so happens that the Roman emperor, Julius Caesar, was stabbed to death on March 15th 44 BC by the very senators who were supposed [...]

Another Market Crash Coming for 2010? (VIDEO).

Stock market analyst Robert Prechter is seeing what he calls “the Biggest Bubble in History”, and that’s not a good thing for investors.

According to The Wall Street Journal, Prechter told the Society of Technical Analysts in London that we are in the midst of a “grand, super-cycle top” and that all the signs are pointing [...]

Are Target Date Funds good, bad or just plain ugly?

Target date funds have been in the news quite a lot over the past few years, though the nature of the news seems to have gone from great to bad over that time. Consider that when target date funds were first introduced they were heralded as the pinnacle in the evolution of investment vehicles. They [...]

Investing Term Tuesday – January Effect.

In honor of just closing the books on January, I thought it might be nice to examine the January Effect.

The January Effect is an investing term that refers to a general increase in the stock market during the month of January. This effect is typically attributed to an increase in buying caused by the addition [...]