Ask Which Market Your Fund is Beating

In a recent Wall Street Journal article, columnist Jason Zweig highlights and questions the fee practices of a Putnam Investment mutual fund, noting that the interests of fund managers and investors can sometimes become “misaligned.” Zweig writes that the Putnam Capital Spectrum Fund, launched in 2009, touted “unusual objectives and fees”: It could buy any securities its manager (David Glancy, who has since left Putnam) found attractive and charged a “fulcrum” fee that matched downward… Read More

A “Great Cessation” Investing Playbook

While the fall in stock prices amid the coronavirus pandemic might be encouraging “for those with the cash and courage to begin buying into the decline,” a recent Wall Street Journal article by columnist Jason Zweig warns, “if your paychecks might disappear, you shouldn’t be spending money to buy stocks when you might soon need it for necessities.” Zweig shifts the discussion to human capital— “the value of the current and future earnings from your… Read More

Zweig: We Can Control How We React to Market Panics

Market panics are “forces than can be hidden or delayed but never eliminated,” writes Wall Street Journal columnist Jason Zweig. “The modern history of financial markets is a chronicle of attempts to control risk—if not eliminate it,” Zweig writes, adding, “One after another, they have all failed.” Zweig cites a number of historical events that were intended to mitigate market risk, including the creation of the Federal Reserve “in the wake of the Panic of… Read More

Zweig: What Would Benjamin Graham Tell You to Do?

In a recent Wall Street Journal article, columnist Jason Zweig discusses how guidelines from the late, legendary investment analyst Benjamin Graham can help guide today’s investors as they navigate through this period of market turbulence. Graham—who served as a mentor to Warren Buffett–highlighted the importance of discerning between investing and speculating, writes Zweig. He described investors as those focused on buying and holding “suitable securities at suitable prices,” while speculators would be more interested in… Read More

Zweig on the Brain and a Crashing Stock Market

The stress of today’s falling stock market is palpable, and investors need to understand the havoc it can wreak on the human brain. This according to a recent article by columnist Jason Zweig of The Wall Street Journal. “To keep it from destroying your long-term investing plan, you will need to manage that stress and restore a sense of control,” writes Zweig, who explains that matters in the current environment are made worse by the… Read More

You Don’t Have to Sell Stocks Now

If individual investors keep their cool as coronavirus fears continue to pummel stocks, they “might even get to buy bargains as the big money bails out,” writes columnist Jason Zweig in a recent Wall Street Journal article. Professional investors tend to move quickly when the market turns to avoid the ire of clients, Zweig explains, which can lead them to “chase the market trend too far and too long.” However, a 2002 study found that… Read More

ETFs Had to Sell When the Stock Got Crushed

An article in The Wall Street Journal by columnist Jason Zweig reminds index-fund investors to understand what they own. Zweig illustrates with the example of how the SPDR S&P Dividend ETF substantially increased its holdings in Tanger Factory Outlet Centers Inc. over the past three years such that, by the end of 2019, it owned 22.6% of the company’s stock. “Now that Tanger’s stock has halved, the fund has to sell,” writes Zweig, adding, “Short… Read More

When Warren Buffett Thanks You for “Client Alpha”

By Justin Carbonneau (@jjcarbonneau) Imagine for a moment you were one of the very first investors in Berkshire Hathaway in 1965 and you’ve stayed committed to Buffett all these years (54 years and counting be exact). You’re meeting him today to profusely thank him for producing the results he has. You say, “Warren, I want to thank you for producing the long-term outperformance over the market you have delivered on my investment. You’ve more than… Read More

Wheat and Oil to Spice Up Returns for Patient Investors

In a recent Wall Street Journal article, columnist Jason Zweig explains how investing in commodities can pay off. Even though assets like oil and gas, corn, wheat, hogs and nickel have been, in Zweig’s words, “stinking up the joint ever since investors raced to buy them during the financial crisis,” he adds that new research suggests commodities “may deserve a small place in the portfolios of iconoclastic investors  who have plenty of patience.” The article… Read More

Stock Market Needs ‘Knights of Faith’

In a recent Wall Street Journal article, columnist Jason Zweig argues that it’s now easier for investors to recover losses after a market dip due to lower trading costs and advances in technology. Even though investors are facing a situation in which future stock returns “may well be lower than the past decade’s lavish annual average of nearly 14%,” Zweig writes, “we should thank our lucky stars for living at a time when we can… Read More