Mutualfundreform.com

“The Securities Industry continues to meander around the 800,000 job level, where it has been stuck for nearly 3 years. March saw the loss of a few hundred jobs.”–BrokerHunter, April 10, 2012 If any investors wonder whether they are getting the best service possible from their brokerage firm or fund company, this employment chart may be enlightening. It shows the number of layoffs in the securities industry over the past…

Humility is not one of the personal traits held by many people in the investment business.  This includes everyone from portfolio managers to advisers to mutual fund wholesalers.  Part of this is due to the job.

Whether it is due to demographics or the dismal performance of the stock market or the weak economy, the focus on retirement income has never been greater. So while much of the media’s attention is focused on the big picture, the bulk of Americans approaching and saving for retirement through their 401(k) plans have been left behind to fend for themselves. Enter Charlie D. Epstein (no relation), who has developed…

With over $ 270 billion in assets, target-date funds (TDFs) continue to be the default provision favorite for millions of future retirees as part of the Pension Protection Act of 2006.  But despite their wild popularity, TDFs have yet to overcome what many consider some fundamental design flaws that make them the less-than-perfect default investment choice for millions of investors. One of these major shortcomings occurs when a person actually…

By most measures, the 2008 recession ranks as the worst since the Great Depression.  Not only has it eroded the per capita incomes of entire nations (see  Mutualfundreform.com story posted Jan. 27, 2012)), but it has also taken its toll on future retirees due to reduced Social Security contributions and pension benefits, accompanied by lost incomes.  The combined effect translates into less income and reduced benefits for millions of future retirees.

Today’s news that U.S. economic growth may not exceed 2% this year had an immediate effect on the stock market.  But how long does it take a nation to recover its GDP in a slow growth period? The U.S. economy grew at a less-than-forecast 2.8% in the fourth quarter 2011.  For the full year 2011, the economy expanded 1.7% and consumer spending grew 2.2%, according to U.S. Commerce Department data….

News that the Federal Reserve is considering a new $1 trillion round of quantitative easing is being accompanied by new data showing the ratio between home equity and disposal income is at a historic low.  This unprecedented ratio is all important in a credit society since it demonstrates that expansion possibilities are limited to non-existent if American consumers cannot borrow.

At one time, Europe was considered the trendsetter in fashion, design and political thought.  Now, a new study by Greenwich Research shows that Europe is leading the way in fee reductions and introducing new investment products centered around ETFs and specialized funds. The reason for the re-positioning is due to Europe’s new economic realities. The 2011 European Intermediary Distribution study found that in order to remain competitive and provide a…

Just as momentum is building inside Congress to enact new rules prohibiting insider trading among elected officials, an opposing Objectivist view (advocated by adherents of Ayn Rand) is being aired which contends that insider trading should be legalized. The rationale? 

The debate over the benefits of active investment management versus passive investing remains a favorite topic of investors.   Whenever new data emerges to buttress the long-established argument that index funds, which use passive investing, outperform on all measures compared to active-funds, the strategy gains more attention.