Zweig on the Impact of Index Funds

Last month marked the fortieth birthday of the first index fund (launched by John Bogle, founder of the Vanguard Group) and the anniversary has triggered a lot of discussion and reflection on the trajectory this class of funds has traveled since. Jason Zweig of the Wall Street Journal shares some thoughts on the subject and […]

Sanity and Savings are Paramount for Today’s Investor

“Rates probably won’t rise until almost no one on earth is expecting them to. When that happens, it will hurt,” blogs Jason Zweig of The Wall Street Journal. Underscoring the strange financial climate where bonds are paying near nothing and stocks have risen to all-time highs, Zweig points out that we’ve been here before. Inflation-adjusted […]

Zweig: Avoid Higher Risk When Yields are Low

It seems that yield-starved investors are turning to high-risk investments in what Jason Zweig of The Wall Street Journal recently termed, “a reckless lunge.” Since June 30th, inflow to ETFs specializing in bonds from emerging-market countries has hit $1.2 billion. And, so far this month, investors have poured $2.8 billion into high-yield ETFs holding “junk” […]

Zweig: Gold Is Not All That Glitters

In the summer of 2015, Jason Zweig wrote an article for The Wall Street Journal in which he claims that investing in gold (which was trading at around $1,130 an ounce) was a “leap in the dark.” In a WSJ blog earlier this month, he writes “Gold is up 20% since I ridiculed it; the […]

Forecasts are more like “Aftercasts”

New research illustrates how strongly the recent past influences investor expectations, as Wall Street Journal columnist Jason Zweig notes. Research by Professors William Goetzman, Robert Shiller, and Dasol Kim concluded, in Zweig’s words, “that investors’ forecasts regularly look more like aftercasts – projections of the recent past into the future.” The research drew on data […]

The Risk of Investing in “Smart Beta” Funds

Writing in the Wall Street Journal, Jason Zweig cautions readers against blindly investing in popular “smart beta” funds. He notes that a recent Research Affiliates study suggests “their low risk in the past may lead to higher risk in the future.” These “smart beta” funds are “backed by research purporting to show [they] ha[ve] beaten […]

Emerging Markets: Lessons From History

Jason Zweig of the Wall Street Journal draws parallels between the 19th century emerging U.S. market and today’s emerging markets, especially China. “Emerging markets aren’t lucrative investments just because they are ’emerging,’” according to Zweig. From 1802 to 1870, stocks in the emerging U.S. market gained an average of 6.7% annually. Since 1926, the average […]

How Market Surprises can Impact your Thinking

Jason Zweig of the Wall Street Journal highlights the effects of surprises on investor psychology, drawing on neuroscience and historical events back to the 18th century. Robert Shiller of Yale says, “Metaphors and stories are important in investors’ thinking, and they can become a self-fulfilling prophecy,” noting that such stories are adjusted partly “by the […]

Munger On Buffett, Temperament, And Why He's Better Than Ben Graham

Charlie Munger isn’t nearly as high-profile as his Berkshire Hathaway partner Warren Buffett, but The Wall Street Journal’s Jason Zweig recently caught up with him for a fascinating interview in which Munger talked about everything from Socrates and Confucius to derivatives and accounting practices to why he doesn’t love Benjamin Graham the way Buffett does.