Tuesday, March 15, 2016

U.S. News: Hidden Mutual Fund Fees That Are Robbing Your Returns

By SIMON CONSTABLE

So you've accumulated a nest egg by investing in mutual funds. Congratulations! That puts you ahead of the game. 
But to grow an even bigger stash, try squeezing out the fees. 
"Make sure you pay as little of that gross return in fees as you can," says Mitch Tuchman, managing director at Rebalance IRA, a financial services company in Palo Alto, California. Fees ultimately eat into any gains made by the mutual funds you own. 
But mutual fund fees are only about 1 percent of the assets, right? Wrong – on three counts. 
Read more here.

Friday, March 11, 2016

Fortune: Here Are the Stocks to Buy if Donald Trump Becomes President

By SIMON CONSTABLE

Big change in the land’s highest office can mean big changes in the economy.In general, promises are broken or only half kept. Still, we get clues on which areas of the economy will be favored, and which will not. Health care got a boost under President Obama, and defense did well under George W. Bush.

With any politician running for office it’s hard to know exactly how things will turn out if they’re elected. What if Donald Trump were to become the next U.S. President, which sectors would benefit then? Here’s what some experts had to
 say on the matter:

Thursday, March 10, 2016

TheStreet: Scrap the C-note to Stop Crime? It's a Red Herring

By SIMON CONSTABLE

Something smells fishy about the call to scrap large denomination currency, such as the U.S. $100 bill and the €500 note.

The idea, forwarded by former U.S. Treasury Secretary Lawrence Summers, is that the only people who really use such money are criminals and terrorists.

"Extensive analysis is totally convincing on the linkage between high denomination notes and crime," Lawrence wrote in a recent editorial for The Washington Post.

The problem is that such assertions don't pass even the most cursory sniff test. Read more here.

Tuesday, March 8, 2016

U.S. News: The Disconnect Between the Economy and Wall Street

By SIMON CONSTABLE

Ugh! The financial world seems to have developed a touch of cognitive dissonance. On the one hand, the economy is slowly, but surely, getting better. On the other hand, investors seem jittery, like addicts waiting in agony for their next fix. 
It can be confusing, but here's what you need to know. Read more here.

Monday, March 7, 2016

TheStreet: Lower Oil Prices Are Actually Stopping a U.S. Recession, Not Causing One

By SIMON CONSTABLE

What a difference a few months makes: Not so long ago, hand-wringing pundits warned that plunging oil prices portended an ugly global recession from which the U.S. wouldn't escape.

Now that concern seems overblown. The economy continues to grow and add jobs -- 242,000 in February, according to the latest government data. Read more here.

WSJ: Gender Bias in Hedge Funds?

By SIMON CONSTABLE

Running a successful hedge fund is a challenge for anyone. But it’s especially hard for women, a recent study says.

Hedge funds run by women are struggling for capital despite there being no statistically significant difference in performance between their funds and those run by men, according to new research. Part of the reason, say the researchers, is that women running hedge funds get a low level of news-media attention. Read more here.

WSJ: What Is the Presidential Predictor?

By SIMON CONSTABLE

Will the stock market’s performance this year determine who will be the next U.S. president?

It’s a questionable proposition, but a study of market data in presidential election years since World War II found a strong correlation between the performance of the S&P 500 index and who ended up in the White House. Read more here.