FundAdvice.com Articles


Wisdom from the masters
User Rating: / 38
March 11, 2008
 By Paul Merriman

Sometimes the most powerful wisdom comes in compact packages. A great quotation can sum up a lifetime of experience in a few words, giving us all valuable lessons. Sometimes a quote itself can tell the whole story. But often the meaning must be teased out of it. Here are some of my favorite examples.
Ten ways to crash proof your investments
User Rating: / 59
February 27, 2008

Everybody’s a genius in a bull market, the old saying goes, but a bear market creates fear, uncertainty and costly mistakes.

The conventional definition of a bear market is a decline in prices of 20 percent or more, lasting at least two months. Whether Wall Street is in a bear market right now depends on what is being measured. But there’s no question this market has unsettled many investors.


Here are 10 ways to avoid permanent losses and crash-proof your portfolio ...

Ten consequences of taking too much risk
User Rating: / 28
February 08, 2008
Many people are feeling beaten up by the stock market over the past few months, and I’m often asked for market commentary. What do I think is happening? When will things get better? Should I get out now before things get worse? What’s the right thing to do?
Why we still don't favor commodities
User Rating: / 48
Written by Adam Ott   
January 31, 2008
By Dennis Tilley

Director of Alternative Investments

Do commodities have a rightful place in a broadly diversified portfolio? The obvious answer seems to be yes, they do. However, after a lot of careful study and thought we have concluded that the right answer is still no, they don’t.

Commodity prices across the board are at all time highs.  Experts say the world is running out of natural resources and that production will not keep up with the rising demand from fast growing emerging economies. 

From a portfolio point of view, commodities also have attractive characteristics.  While commodity prices are quite volatile, they tend to zig and zag independently of stock and bond prices.  Due to the uncorrelated price movements, adding a small amount of commodity exposure can actually lower overall portfolio risk for a given expected return. 


Paul Merriman: Ten reasons to ignore Jim Cramer’s advice
User Rating: / 101
Written by Paul Merriman   
December 12, 2007
CNBC’s Jim Cramer may be a popular television entertainer, but whether he’s helping investors is another matter.  This question was brought to my attention recently in a sharp exchange on the Web site Dow Jones MarketWatch between Cramer and Paul B. Farrell, a MarketWatch columnist who has earned my respect.

Paul is a veteran of business and Wall Street. He’s also the author of nine books, including The Lazy Person’s Guide to Investing. Recently, he watched Cramer’s Mad Money on CNBC and was not amused. In addition to costing viewers their valuable time, he wrote, Cramer’s wild TV antics also are likely to cost them money. Paul made a powerful case that intelligently selected “lazy portfolios” outperform the active stock trading advocated by Cramer.

Top 10 questions to prepare for your financial future
User Rating: / 41
Written by Paul Merriman   
December 05, 2007

At our workshops, we do our best to present some of the finest investing material you’ll find anywhere. But sometimes, one-on-one help is really what is needed.

Superior diversification on a shoestring budget
User Rating: / 165
Written by Paul Merriman   
November 08, 2007
Proper asset diversification makes more difference than anything else investors can do. But it's a daunting task when you're just starting out with little money. In this article Paul Merriman describes a step-by-step plan for doing it right. Editor's note: This article, first published in 2002, was updated in January 2008.

Should you pay off your mortgage, or not?
User Rating: / 136
Written by Paul Merriman   
November 07, 2007
Good news! You have just had an unexpected windfall of $300,000, exactly the amount you still owe on your mortgage. Do you know what you would do? Would you rush to pay off your mortgage with your new-found cash, or would you keep your mortgage and invest the cash?

Paul Merriman quoted in the New York Times
User Rating: / 3
Written by Adam Ott   
October 29, 2007

In an article in the New York Times Business Section on October 23, Julie Connelly described the attraction of index funds. Paul Merriman was the first person she quoted.

Click here to read the story.

 

Successful 401(k) investing in 12 easy steps
User Rating: / 74
October 29, 2007

For many American investors – perhaps the majority – the 401(k) plan (and its near-clones for non-profit organizations) has become the mainstay of retirement savings. It’s not hard to see why. These plans combine tax advantages with automatic savings and in many cases the incentive of matching funds from employers. Editor's note: This article, first published in 2002, was updated in October 2007.
 
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