Rekenthaler on When to Buy Stocks Directly

In a recent Morningstar article, columnist and veteran fund researcher John Rekenthaler argued that novice investors should avoid the direct purchase of equities until they become “sufficiently educated.” Here are some of Rekenthaler’s key points: “The young investor who starts with stocks courts the danger of performing so badly as to become disillusioned, thereby abandoning equities.” “The math is unfavorable for the direct-equity investor,” Rekenthaler writes, explaining that market indexes are moved by a relatively… Read More

Bulls and Bears Both Gaining Ground

The continued climb in global stocks this year is being accompanied by rallies in safe-haven assets such as gold and bonds, according to a recent Bloomberg article. “There are plenty of reasons being cautious is paying off,” the article says, such as “politics in Washington is fractured, tension on the Korean peninsula is rising and worries have revived about low U.S. inflation.” But these factors aren’t impeding gains for “equity bulls,” the article says, “who… Read More