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.
Interest rates have risen significantly in 2013 with the five-year Treasury rate up 0.67 percent through the end of the second quarter. To put this increase in perspective, from the end of 1962 through 2012, there were 17 other years when interest rates increased this much or more over an entire year. The recent increase in interest rates has led to questions about why they have risen so substantially and what the implications are…
Overview: The following are some key investing principles that investors should know. The Importance of Education It is our desire and intent to educate clients about how capital markets work and to provide them with the information necessary for their financial well-being. The advice to invest in passively managed funds is significantly different from most…
Overview: Stay the course. We repeat that advice again and again. It is a message we would not repeat if we did not truly believe it was in your best interests. The following discusses why our message is the same regardless of market conditions. Our advice has always been — and will always be —…
Investors have been living with low interest rates from late 2008 through current times. Interest rates have been so low for so long that the recent upswing in rates caught many investors by surprise. From the beginning of the year through June 20, the 10-year Treasury rate went up by 0.67 percent from 1.75 percent…
Download PDF
Overview: The following rules can help investors build and adhere to a well-designed investment plan. The following investing guidelines may be instrumental in giving investors the best chance of achieving their financial goals. Constructing an Investment Plan Recognize that the ability, willingness and need to take risk is different for everyone. Plans fail because investors…
After the bear markets of 2000–2002 and 2008, we seem to have entered an era in which investors wonder whether a market collapse is right around every corner, even following new market highs. The S&P 500 Index achieved a new high at the end of the first quarter, closing at 1,569 after beginning the year at 1,426, but has experienced considerable volatility surrounding the events in Boston. So, is it reasonable to fear a severe market downturn given this generally good performance in tandem with recent events?
With the markets predominantly producing positive news so far this year, you would think that would have investors feeling optimistic. But are they? Carl Richards, director of investor education for the BAM ALLIANCE, senses what is known as the “wall of worry” on Wall Street — that the markets are doing well in spite of…