He Says She Says

Sonja Haggert  |  July 16, 2021

MY HUSBAND AND I have been selecting investments together for years—and we’re still married. How have we gotten along for decades without killing each other?
Our investment discussions revolve mostly around individual stocks and bonds. They constitute the bulk of our investments and take up the bulk of our time. We own everything from small amounts of risky stocks like Immutep (symbol: IMMP) to blue chips like Johnson & Johnson (JNJ) and 3M (MMM).

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Far From Middling

Mike Zaccardi  |  June 25, 2021

YOU MIGHT RECALL Malcolm in the Middle, a turn-of-the-century TV sitcom in which the middle child often feels ignored. That’s kind of what goes on with midsized stocks.
Large-capitalization growth shares and small-cap value stocks seem to get all the attention these days. The former feature the FAAMG companies (Facebook, Apple, Amazon, Microsoft and Google) and other 2020 winners, while the latter are the darling of investors who embrace academic research showing strong long-term outperformance by small-cap value shares.

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My SPAC Experience

Kyle McIntosh  |  June 23, 2021

SHAQ AND A-ROD have gotten involved in special purpose acquisition companies, or SPACs, one of the hottest products on Wall Street over the past year. I got there a few years earlier.
In 2018, I invested $5,000 in a SPAC that has since underperformed the market. Still, I got some hands-on experience ahead of the 2020-21 boom. Thinking of buying a SPAC? Based on my investment, here’s what you can expect.
Tom Farley isn’t a household name like Shaq or A-Rod,

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Portfolio Acid Test

Tom Welsh  |  June 15, 2021

MANY OF US HAVE much of our wealth in stocks and bonds—and that raises some nagging questions. How safe is this money? What do I own that I can really count on? If I’m retired, how much of this portfolio can I afford to spend in the year ahead? These concerns grow when markets seem high.
How can we get some perspective on these questions? We might try calculating our “spendable net worth.” What’s that?

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Good Not Great

Mike Zaccardi  |  June 9, 2021

SERIES I SAVINGS bonds are getting a lot of attention right now because their stated yield is 3.54%, an apparently fabulous interest rate on an almost no-risk investment.
But don’t be fooled: While I bonds are a fine choice for super-conservative investors, you’ll get that 3.54% annualized yield for just six months and thereafter the yield could be far lower.
I bonds feature a variable interest rate that floats with inflation. That floating rate resets each May and November based on recent inflation.

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Portfolio Insurance

Adam M. Grossman  |  May 30, 2021

A TEL AVIV WOMAN named Anat decided to surprise her elderly mother with a gift. Noticing that her mother had been sleeping on the same worn-out mattress for decades, Anat replaced it while her mother was away from the house. She then took the old mattress out to the curb.
It wasn’t until the next morning that her mother noticed the change and asked what had happened to the old mattress. Anat explained that she had put it out with the trash,

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Illusions of Safety

Jonathan Clements  |  May 29, 2021

IF WE WANTED to design a portfolio that appeals to our worst investment instincts, we might couple a savings account with lottery tickets. Some governments have even issued bonds with just these characteristics.
What’s the attraction? The savings account ensures that part of our portfolio never loses value, while the lottery tickets let us dream of riches in return for a relatively small investment.
This year, we’ve seen the lottery-ticket mentality writ large, as investors take fliers on meme stocks,

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Picking Problems

Michael Flack  |  May 26, 2021

I RECENTLY READ an interesting article about why you shouldn’t pick individual stocks. The author mentioned the classic reason: “Since most people (even the professionals) can’t beat the index, you shouldn’t bother trying.”
He also mentioned another reason: “The existential dilemma of doing so… how do you know if you are good at picking individual stocks?” The author goes on to mention that, since luck plays such a significant factor in stock-picking, it could take a very long time to determine if you’re good or just lucky and,

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Why We Own Bitcoin

Sonja Haggert  |  May 21, 2021

GROWING UP, I remember my mother telling me to save because “you never know what can happen.”
Like a pandemic?
I reference my mother because she was ahead of her time in preparedness and quite savvy about money. She bought gold when it wasn’t popular—and I think she would have bought bitcoin. Why? For the same reasons that my husband and I decided to take the plunge.
To be sure, bitcoin itself has plunged in recent weeks,

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Robbin’ Who?

William Ehart  |  May 11, 2021

TERRY ODEAN has been studying investor behavior for decades. The University of California at Berkeley finance professor has proven again and again that everyday investors often harm their performance by trading too much.
Last year, Odean and his fellow researchers turned their attention to the Robinhood phenomenon. Result? When I spoke to Odean, he said the only thing that surprised him was the magnitude of the self-inflicted investment wounds by users of the free-and-easy trading app.

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My Best Investments

Michael Flack  |  May 10, 2021

SOMETIMES OUR BEST investments can be a great guide to what not to do—even better than our worst investments. Consider three of my best:
1. Master limited partnerships. In 1999, I read an article by Paul Sturm in the much-missed SmartMoney magazine. It was a comprehensive review of a security I hadn’t previously heard about, namely master limited partnerships (MLPs).
The two decades since have made the unique commonplace.

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Sleeping with Cash

Andrew Forsythe  |  May 6, 2021

HERE AT HUMBLEDOLLAR and in many other places, this point has been made: The best investment portfolio isn’t the one that’s theoretically or empirically superior. Rather, it’s the one that lets you sleep at night.
What I’ve found, as far as my portfolio goes, is that the necessary prerequisite for a good night’s sleep is one thing above all else: an oversized cash reserve. By that, I mean a cash hoard that can handle not only the most likely contingencies,

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Virtue’s Vice

Phil Kernen  |  April 22, 2021

IT’S BEEN A GREAT stretch for many mutual funds and exchange-traded funds that buy stocks based on environmental, social and governance (ESG) criteria. For instance, the actively managed Parnassus Core Equity Fund notched 19.3% a year over the three years through March 31, Fidelity U.S. Sustainability Index Fund has climbed 17.4% and iShares ESG Aware MSCI USA ETF 18.2%. All three funds look like winners compared to the S&P 500’s 16.8% annual total return.

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Stock Answer

Marc Bisbal Arias  |  April 21, 2021

ROUGHLY HALF of Americans don’t invest in the stock market. Why not?
According to a JPMorgan Chase survey, 42% say they don’t have enough money, with 63% believing you need at least $1,000 to start investing. But in fact, some financial firms have no required minimum, including the mutual funds offered by Fidelity Investments and Charles Schwab.
No doubt a lack of financial literacy also plays a role. The S&P Ratings Services Global Financial Literacy Survey asked folks around the world about notions like diversification,

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Inflation Ahead?

Adam M. Grossman  |  April 18, 2021

IN THE INVESTMENT world, inflation is the topic of the day. There are four key reasons:

Congress. Since March 2020, the federal government has dropped more than a trillion dollars of cash into the economy via stimulus checks and the Paycheck Protection Program. While many of the recipients were unemployed and needed these dollars to meet basic needs, others were not. The result: More money in people’s pockets allowed them to spend more,

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