Over the last 3 years the S&P 500 has been the best performer of all the asset classes, as shown in the table of returns at http://paulmerriman.com/
A 32-year-old investor wants to know why shouldn’t he put all his investments in small cap value? While agreeing with the young investor’s comments, Paul recalls the famous Mark Twain quote, “There are two times in a man’s life when he should not speculate: when he can’t afford it, and when he can.” So, is small cap value an investment or a speculation? Paul attempts to help this young investor answer that question.
The Hulbert Financial Digest last week announced it was shutting down after 36 years. Losing the only meaningful tracking of investment newsletters is sad indeed. In many ways Mark Hulbert’s Digest was like having the S.E.C. overseeing the mutual fund industry. Mark couldn’t find the bad apples, but he could alert readers to the newsletter’s real returns, as opposed to results that had nothing whatsoever to do with reality. Paul discusses the four big lessons Mark learned and what they could mean to how you construct your portfolio.
Among the many choices investors must make, the most important is who to turn to for trustworthy information, advice and help.
This podcast, adapted from a chapter in my book, “Financial Fitness Forever,” is the first in a series of articles to address the four most-important choices every investor faces.
The subsequent will address how to diversify, how to control risk, and whether or not to try to beat the market.
Investors who get right even one of these four choices will have a leg-up on the competition. Nail all four of them (it’s not really very hard), and you’ll be among the most successful investors of your generation.
I’ll finish the series with a fifth podcast on how to reduce your stress level while ensuring that all these things get done properly.
The Hulbert Financial Digest is the only real record of the performance of financial newsletters. Having subscribed to Hulbert for over 20 years, Paul investigates the annual issue which reports the latest results, short and long term. In this podcast Paul discusses the best lessons from this annual issue and how his free recommendations compare with newsletters that charge for their advice. Paul also discuss why these results do not mirror the real results investors achieved.