Investing Basics

Conventional wisdom is that stocks outperform bonds. That’s wrong. Fact: Investors who buck conventional wisdom and buy bonds are more likely to see better results than investors who focus solely on equities. Don’t let anyone tell you that bonds are staid, stodgy or that they’ll… Read More

Investing even modest sums over time can build affluence. But don’t put the cart before the horse. You’re not ready to build wealth until you understand your overall financial situation and take several key steps to make sure you build on a sound foundation. 1. Get an… Read More

We all know that Congress is only too happy to “invest” our money. But how are they when it comes to managing their own? Not so great, as it turns out. A review of the personal financial disclosures filed by members of the U.S. Senate and House of Representatives gives some insight into just how bad these politicians are at managing money. The table below shows the 15 most popular stocks held by members of Congress, with the number of owners to the right: If $1,000 had been invested in… Read More

We all know that Congress is only too happy to “invest” our money. But how are they when it comes to managing their own? Not so great, as it turns out. A review of the personal financial disclosures filed by members of the U.S. Senate and House of Representatives gives some insight into just how bad these politicians are at managing money. The table below shows the 15 most popular stocks held by members of Congress, with the number of owners to the right: If $1,000 had been invested in each of the 15 most popular stocks held by Congress on Jan. 1, 2008, the entire portfolio would be worth $10,148 today, a loss of -32.3%. This exceeds the total loss of the S&P 500 index, which has fallen -31.7% in the same period. In fact, only one of the companies, IBM, has shown a positive return, though nine companies posted smaller losses than the benchmark, losses that could have been made smaller still with reinvested dividends. As you… Read More