Chart of the Week – International Markets vs. S&P 500

This week’s Chart of the Week comes from the most recent ‘Guide to the Markets’ put out by the wealth management folks at JP Morgan:

emerging_markets_vs_S&P_500How much longer can the trend last? Here’s some thoughts: [continue reading…]

Chart of the Week: Dimensional Fund Advisors vs. Benchmarks



This week we are looking at one fund company with a stellar track record and looking at the ins and outs of their investment philosophy. The company is Dimensional Fund Advisors (DFA for short), which is one of the fastest growing large fund managers out there today.


Yesterday we looked at a quote from their founder and CEO about his first key to successful investing.


Now today in our chart of the week we look at how his company as applied that philosophy and how they (and their investors) have benefited.  [continue reading…]

Chart(s) of the Week – The Effect of Inherited Volatility

shareasimage inheriting volatilty


In yesterday’s quote of the week we looked at the findings of numerous studies focusing on the average investors’ underperformance to a stated fund’s annual returns. This underperformance stems from investors trying to time the stock market, attempting to buy and sell multiple times per year in attempt to outperform the general market and chasing returns by buying yesterdays “hot” funds hoping the returns continue. Mr. McNabb, Vanguard’s chairman and CEO, calls this behavior “inheriting volatility”. In this week’s Chart(s) of the Week we are looking at exactly how much investors are hurting themselves over the long run.  [continue reading…]

Chart of the Week: Market Declines Can Be a Huge Benefit for Long Term Investors



This week we are looking into the idea of stock market sell offs being a GOOD thing.

Earlier this week we looked at a quote from Jason Zweig from his commentary in Ben Graham’s Intelligent Investor, about a hypothetical financial news channel that would report market crashes as a good thing.


But why would anyone actually cheer for market sell offs? Doesn’t anyone who owns stocks want them to go up?

Here is why those of you with decades left to invest should be getting on your knees and praying for cheaper shares. [continue reading…]

Chart of the Week: What Could You Buy With $200 Billion?


Recently, Facebook’s market cap has surpassed $200 billion dollars. That got me thinking….


What other companies could you buy for $200 billion, and how do those companies compare to Facebook?


First, we look at the market caps of a few companies. In other words – how much it would cost to buy the company: [continue reading…]