Reblog: Five Myths About Index Investing


Index investing has become extremely popular in recent years. A lot of new investors have embraced the strategy in recent years. Unfortunately, many investors are embracing the strategy by believing certain myths that are simply not true. I am going to examine several of their problematic thought points, and discuss why they are myths that could hurt those investors in the future. In reality, there is nothing magical about index investing.

I will refute the five myths below:

1) Indexing is passive investing.

Indexing is not passive, because there is a requirement for the investor to exercise judgment as to which index funds to select.  It then also imposes forced market timing through buying and selling of assets at certain time periods. In addition, the indexes themselves comprise portfolios of individual stocks or bonds which constantly add or remove components for a variety of reasons.

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stockarchitect June 5, 2017

Dow Jones / Index Investing / Mutual Funds / Myths / Passive / Ronald Read / S&P / valuewalk.com / Vanguard Pacific Index Fund /

Reblog: Why investors pay attention to the death cross


Key Takeaways

  • A death cross is a technical indicator that occurs when the short-term moving average of a security such as a stock falls below its long-term moving average.
  • The onset on a death cross can signal a bear market is on the horizon.
  • Investors can utilise death crosses to help identify low-price entry points into the market.

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stockarchitect December 28, 2016

Analysis / Bollinger / Death Cross / Investing / Motif / motifinvesting.com / S&P / Technical / VIX /

10 Peter Lynch quotes I try not to forget!


peter-lynch

Peter Lynch (born January 19, 1944) is an American businessman and stock investor. As the manager of the Magellan Fund at Fidelity Investments between 1977 and 1990, Lynch averaged a 29.2% annual return,consistently more than doubling the S&P 500 market index and making it the best performing mutual fund in the world. During his tenure, assets under management increased from $18 million to $14 billion. He also co-authored a number of books and papers on investing and coined a number of well known mantras of modern individual investing strategies, such as Invest in what you know and ten bagger. Lynch is consistently described as a “legend” by the financial media for his performance record,and was called “legendary” by Jason Zweig in his 2003 update of Benjamin Graham‘s book, The Intelligent Investor.

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stockarchitect April 20, 2016

Fidelity / Fund / Investments / Lynch / Magellan / Peter / Quotes / S&P /