IN MY COLLEGE DAYS, a roommate taught me something about bargaining. He was a clothes horse, a rarity among college students then and, for all I know, still today. When he was feeling down, his best medicine was to take a stroll down the Drag, as Guadalupe Street in front of the University of Texas is known, and buy a new shirt.
In those days, there were several small mom-and-pop haberdashers on the Drag,

MUCH HAS BEEN written about the virtues and pitfalls of index funds that weight stocks based on their market value. In theory, every company’s stock market value reflects the collective wisdom of market participants. Apple the biggest stock in the world? Must be for good reasons, the thinking goes, so it should get a big index-fund weighting.
Well, the market cap of Russia in the Vanguard FTSE Emerging Markets ETF (symbol: VWO) as of Oct.

ACCORDING TO GMO investment strategist Jeremy Grantham, we’re in the midst of a rare “superbubble,” which he defines as a three-sigma event. Three sigma is a statistical term in probability, referring to an event which should occur less than 0.3% of the time or about once every 333 years.
Calling a bubble, let alone a superbubble, can be hazardous both to one’s reputation and one’s wallet. Even if Grantham’s call is correct, using that information to make money—or avoid losses—is easier said than done.

I NOTICED AN AD from a discount airline the other week for a ticket from Cincinnati to Fort Lauderdale for $76 roundtrip. Folks, you can’t drive between those two cities for $76. The same carrier was advertising a bunch of other roundtrip tickets with similar prices.
Crazy cheap.
I get questioned all the time: Are these airlines safe? Do they have good pilots? Are their jets kept in good mechanical condition? Are they as safe to fly as American Airlines—my old employer—or Delta or United?

I’VE BEEN IN LOVE with index funds for a long time, especially for a reason that doesn’t get enough attention. Lots of financial writers correctly praise index funds for their low costs, low turnover, low drama, massive and easy diversification, and numerous other good attributes.
But the No. 1 reason you should love index funds is they will keep you out of the hands of pushy, unethical financial salespeople. If Wall Street knows you’re committed to index funds,

WE ALL HAVE microphones—be it our social media accounts, our podcast or our blog posts. We all have something we want to say, and we want the world to hear it.
Our venting can be shrill and insufferable at times. Who among us hasn’t grown tired of never-ending political arguments and culture wars? Other times our sharing is just inane: If you’ve ever posted a selfie while looking in a bathroom mirror, you’re guilty.

EVERYBODY SEEMS to hate bonds right now. Can you blame them? Inflation is at a four-decade high, the Federal Reserve is sure to hike short-term interest rates two weeks from Wednesday, and geopolitical jitters make owning high-yield bonds all the riskier. On top of that, returns have been awful since the start of 2021.
But maybe we should take a contrarian approach. Almost everybody should own at least some bonds. Yields have improved significantly.

IN AN ARTICLE last year, I wrote about the importance of strong online account security wherever you keep your savings and investments. I shared habits that should help you avoid the potentially huge financial losses caused by a cybercrime. I also urged readers to weigh a company’s commitment to security when choosing a home for their money.
I’d like to give kudos to Bank of America for providing a good example of this commitment.

I WROTE ABOUT the perils of timing the market last Sunday. This week, I’ll address its close cousin: stock-picking.
These days, many people accept that stock-picking isn’t a great idea. Evidence shows that both professional and individual investors fare poorly, on average, when they choose individual stocks. But why exactly is that? How is it that indexes—which are simply lists of stocks—so frequently outpace the results of professional portfolio managers?
There’s more than one answer to this question.

SEEING YOUR IRA or 401(k) decline precipitously is bad enough. Locking in those losses is far worse. The good news: I’ve perused various Facebook retirement groups since the Russian invasion of Ukraine and have seen few signs of panic.

For instance, here’s some good advice from a prudent retiree: “Stay the course, but in the future make sure you have enough in a cash reserve for at least one year of planned withdrawals or RMDs,” meaning those pesky required minimum distributions that must be taken each year by those of us age 72 and older.

A FRIEND TEXTED ME yesterday. He wanted my thoughts on putting cash to work given the big stock market decline over the past few weeks. I took my usual approach, saying it’s always a good time to make retirement contributions, and that he should go ahead and swoop in. That was when the S&P 500 was down roughly 2% in the morning. We texted again in the afternoon before the closing bell—and after the market had rallied big.

LOOKING TO IMPROVE your physical and financial health? You might have heard similar sounding advice: All you have to do is burn more calories than you consume—and to spend less than you make.

While there’s an element of truth to both platitudes, I don’t find either helpful. There’s a psychological canyon between such abstract ideas and putting them into practice.
One thing experience has taught me: If I’m authentically stirred to want to do something,

OUR FOUR CHILDREN are adopted.
After we’d been married several years, we were dismayed that my wife hadn’t conceived. Through testing, we found that we were both essentially infertile. As one doctor put it, “It’s good you are married to each other.” We decided not to pursue surrogacy, in vitro fertilization or similar options.
I thought our life was on an even keel until one day my wife asked, “When you get to be 65,

THIS IS A TEST. This is only a test. This is a test of our stock market resolve. Remember how you told yourself you’d stand pat during the next stock market decline, that you wouldn’t get rattled like you did in 2008-09 and early 2020? That moment has arrived.
Like any person with an ounce of decency, I’m appalled by Russia’s invasion of Ukraine and the unnecessary death and suffering that will result. But I’m also confident that the Russians will come to regret their actions.

EVERY SO OFTEN, I see comments on social media about Vanguard Group’s Personal Advisor Services (PAS). One person posted that he’d talked to a growing number of people who quit PAS. There was no particular reason given for why they left. But I don’t doubt it. I’m a PAS client. I’ve often thought about terminating my relationship.
I’ve been with PAS since 2018. When I first joined, the PAS advisors made a few changes to my investment portfolio.