We all know the classic concept of diversification: “Don’t put your eggs in one basket.” True diversification can help protect a portfolio against volatility—the stomach-churning ups and downs that can occur in the financial markets. When a portfolio is properly diversified, the investor should see that when one asset class is down, another may be little changed, or even up slightly. But sometimes, investors distribute their “eggs” among a number of different baskets, but don’t realize that the baskets are all very similar.
Given the importance of money in our daily lives, it shouldn’t be surprising that many of us have a complicated relationship with it. If you struggle with guilt or shame related to how you use your money, the first thing you need to know is that you aren’t alone. The most reliable antidote to unhealthy financial attitudes is having access to trusted friends or advisors who are willing to be vulnerable about their own problems with finances.
As President Trump’s tariffs on foreign imports continue to attract strong reactions and retaliation from China, the European Union, and other US trading partners, the stock markets have displayed some reactions of their own. Volatility—especially when it’s downward—makes us worry about the safety of our investments. But reacting emotionally to market swings will typically not increase the value of your portfolio over the long term, and we know this because of solid, data-based research.
On June 5, the trustees for Medicare’s hospital trust fund released a report containing some somber news: the fund is expected to run out of money in 2026, three years earlier than previously expected. The report cited lower-than-expected revenues from payroll and Social Security taxes, coupled with higher-than-expected payments to hospitals and private Medicare plans.
If you have bought or sold a home in the last few years using the services of a real estate agent, either the buyer’s or seller’s agent probably included a home warranty in the transaction.
The median retirement portfolio account balance for persons age 56-61 is just $25,000—which is obviously not enough for a healthy retirement, and suggests that many Americans followed less-than-healthy savings habits.
There wasn’t a lot of fanfare when Apple Computer announced that it would commit $100 billion of the excess cash it had laying around to buying back its own shares.
The best indicator of a future recession is not perfect, and doesn’t provide an exact time or date, but economists have found that an inverted yield curve can be a warning sign of a downturn to come.
Professional investors are constantly trying to figure out whether the U.S. economy is healthy or sliding toward a recession.