This blog was prompted by an article in the SJ Mercury News reporting that Jake Peavy, the San Francisco Giants pitcher, had been defrauded out of more than $15M by Ash Narayan, a financial advisor with RGT Capital Management in Irvine, CA. According to the SEC lawsuit, Narayan had fraudulently shifted $33M from client accounts…
Read more

Today’s unexpected vote by U.K. citizens to exit the European Union (EU) has resulted in stock market turmoil worldwide.  Unsurprisingly European stocks have taken a beating.  U.K. stocks dropped over 3%, German stocks over 6%, and in France the CAC-40 plunged over 8%.  Even the Japanese Nikkei fell over 7%, its worst single-day performance in…
Read more

If you were holding an S&P 500 mutual fund in 2008 that dropped 37%, you’d likely feel that your fund should go down in history as one of the worst ever. But in reality the fund didn’t do anything wrong except to invest in a part of the market that happened to experience a calamitous…
Read more

Are you currently holding a mutual fund that is not performing well compared to your other assets? Before dumping it, consider that it might be an indicator that your investment portfolio is well-diversified. I’ve written often on this topic, but it’s still worth reviewing how diversification works. In non-mathematical terms, it’s the inclusion of multiple…
Read more

As I wrote in a previous blog, we live in a world of uncertainty. It’s impossible to predict future stock prices no matter how fancy the purported methodology.   But that’s no reason not to invest.  Most of us need to grow our savings in order to keep up with inflation as well as to be…
Read more