Market Volatility

Sun Life Financial Warns on Third Quarter Earnings

The following is a summary of stories related to the recent earnings warning from Canadian financial services company Sun Life. <a href="http://storify.com/tcochrane/sun-life-financial" mce_href="http://storify.com/tcochrane/sun-life-financial" target="_blank">View "Sun Life Financial Warns on Third Quarter Earnings" on Storify</a>

Market Gyrations Cloud the Larger Picture

A very interesting article from Financial Times columnist David Stevenson suggests that investors are making the very common mistake of missing sight of the forest for the trees. In this case, the trees are the daily ups and downs of the stock market. Market volatility naturally draws many people into a sort of short-term obsession with undulating asset prices and portfolio values. Stevenson makes that very valid point that this short-term obsession obscures larger, longer-term and likely...
Key Phrases: 

Does Buy and Hold Now Require a Floor?

The Wall Street Journal recently published an interview (see the video below) with entrepreneur and Dallas Mavericks owner Mark Cuban.

The interview is interesting for a number of reasons.  Cuban talks about investing his own money and he offers some suggestions for regular, non high net worth investors. 

In a nutshell, Cuban strongly believes that the “buy and hold” approach to investing is a worthless strategy.

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Companies: 

How Much More Volatility Can Retail Investors Tolerate?

Retail investors in the U.S. have been exiting in droves in light of the extreme market volatility . A Bloomberg article hits the nail on the head when questioning the psyche of the average U.S. fund investor. Mutual fund flows indicate that the damage to psyches is real and lasting: 33 straight weeks of fund withdrawals after May 10 2010 totaled $98 billion. Fund redemptions total $74 billion thus far in 2011 $23.5 billion has flown from U.S. equity funds in the week ending August 10, 2011. A...
Glossary: 

There is no Free Lunch for Retirees when it Comes to Investment Risk

Retirees have every reason to be an extremely risk averse bunch.  After all, most of them have an immediate or near-term need to draw income from their assets.  This need for income should result in zero tolerance for investment risk or reduction in value of the assets that are intended to produce the retirement...

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