Money and Finance
- A Few Good Reasons To Hoard Some Cash Now - By Jason Zweig
The stock market is near record highs. More money came into U.S. stock mutual funds the week of Oct. 23 than during any other week since 2007. Initial public offerings like Twitter are booming. So have you considered keeping more of your assets in cash?...
- Bill Gross – October 2013 Investment Outlook: Survival Of The Fittest?
But if QE is soon to be out, and guidance soon to be what remains, I think investors should listen and invest accordingly. Not with total innocence, but sort of like a totally hyena-aware lion cub – knowing there’s bad things that can happen out there...
- Will These Royal Yields Rule? – By Jason Zweig
Investors reaching for yield should always bear in mind the warning label on stepladders: "DANGER. DO NOT STAND ON TOP STEP." Just look at what happened this past week to investors in several so-called royalty trusts. These instruments, which collect...
- The Dividend-fund Dilemma - By Jason Zweig
Sooner or later, the markets always punish investors who do the right thing for the wrong reason. Some investors in dividend-oriented stock funds might end up learning that lesson the hard way. So far this year, $9 billion has gone into mutual funds and...
- First Eagle Reopens Two Mutual Funds
First Eagle joins Longleaf and Third Avenue in opening previously closed funds recently.-Arnhold and S. Bleichroeder Advisers said on Tuesday it will reopen two of its First Eagle mutual funds that invest in overseas markets.-The $21 billion First Eagle...
Money and Finance
High Rates? Are You Delirious? - By Jason Zweig
Have today's insanely low interest rates driven investors insane?
Three closed-end funds offered by Cornerstone Advisors of Asheville, N.C., show that some investors have come to believe the impossible: that high yields can persist in a world where central banks have squashed down bond rates to next to nothing.
These people have deluded themselves into believing they are earning fat yields. In reality, they merely are getting their own money back—and you can't turn a fantasy into fact just by wishing it were so.
At Cornerstone, investors are receiving "distribution yields" of roughly 22% of net asset value, and the shares trade for much more than the value of their underlying assets. According to the WSJ Market Data Group, the Cornerstone funds are the three highest-yielding of the 657 closed-end funds in the U.S.
Most of the yield at Cornerstone, however, doesn't come from its investments. In past years, it came from giving investors some of their original assets back. Now, it comes out of money the funds' investors have just added.
- A Few Good Reasons To Hoard Some Cash Now - By Jason Zweig
The stock market is near record highs. More money came into U.S. stock mutual funds the week of Oct. 23 than during any other week since 2007. Initial public offerings like Twitter are booming. So have you considered keeping more of your assets in cash?...
- Bill Gross – October 2013 Investment Outlook: Survival Of The Fittest?
But if QE is soon to be out, and guidance soon to be what remains, I think investors should listen and invest accordingly. Not with total innocence, but sort of like a totally hyena-aware lion cub – knowing there’s bad things that can happen out there...
- Will These Royal Yields Rule? – By Jason Zweig
Investors reaching for yield should always bear in mind the warning label on stepladders: "DANGER. DO NOT STAND ON TOP STEP." Just look at what happened this past week to investors in several so-called royalty trusts. These instruments, which collect...
- The Dividend-fund Dilemma - By Jason Zweig
Sooner or later, the markets always punish investors who do the right thing for the wrong reason. Some investors in dividend-oriented stock funds might end up learning that lesson the hard way. So far this year, $9 billion has gone into mutual funds and...
- First Eagle Reopens Two Mutual Funds
First Eagle joins Longleaf and Third Avenue in opening previously closed funds recently.-Arnhold and S. Bleichroeder Advisers said on Tuesday it will reopen two of its First Eagle mutual funds that invest in overseas markets.-The $21 billion First Eagle...