10 Reasons Why Individual Stocks Are Better Than Mutual Funds

Equity mutual funds pool together money from many investors and invest in a group of stocks. This process in theory is supposed reduce risk to investors especially the risk of owing individual stocks which can blow up. However that is not always the case. Mutual funds also have high risks and they are not necessarily …

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How NOT to Demonstrate the Power of Dollar Cost Averaging

Dollar Cost Averaging (DCA) is an investment strategy by which you invest little by little in each period instead of a lump sum in one shot. By investing small amounts say each month over many years one can reduce volatility and also the risk of heavy losses. Over time small amounts tend to benefit from …

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Recessions and Bear Markets Since 1946

Bear markets are not always preceded by recessions and vice versa. The relationship between these two are tenuous at best. I came across an interesting piece by Liz Ann Sonders at Schwab on this topic. From the article: Stock market relative to recessions What should we expect from the stock market during a recession? Should …

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