Twice last week, the Dow Jones industrial average suffered triple-digit losses. Friday’s loss of 115 points was pinned on economic worries as GDP declined. The previous Tuesday, the Dow lost 190 points, which the media blamed on Fed rate hike fears. The broader Standard & Poor’s 500 index also had bad days.
It’s been another good year for investing, but only if you’ve been doing it right. U.S. stocks are up 14 percent this year as of Dec. 26, on top of a 33.5 percent gain last year, as measured by the Vanguard Total Stock Index Fund ETF (VTI). If you want to do it right in 2015, and maximize the chances of growing your wealth, now is the perfect time to make some New Year’s resolutions. Repeat after me....
When our millennial children live in another city or away at school, most of the time “out of sight” means “out of mind.” But breaking news headlines can raise our anxiety levels to high alert, and recently that seems almost a daily occurrence.
Over the past five years, U.S. stocks have tripled in value. For example, the Wilshire 5000 total return index increased from 27.50 to 82.62. Yet paranoia about the market has caused many investors to miss out. The chart below shows the return an investor would have received just by owning a total U.S. stock index fund and reinvesting the dividends. A total U.S. stock index fund essentially owns every publicly held company based in the U.S. Though the chart tracks a Vanguard index fund, other fund firms such as iShares, Fidelity and Schwab have similar offerings.
We barely began the new year before celebrity divorces began making headlines. Last week the 1970s pop duo Captain & Tennille ("Love Will Keep Us Together") announced the end of their 39-year marriage. That came a week after former New York Gov. Eliot Spitzer and his wife, Silda Wall Spitzer, filed for divorce. No surprise there.
Citing budget cutbacks, the New York Post has axed Vincent A. Musetto, the journalist widely credited with writing one of the greatest tabloid headlines of all time ("HEADLESS BODY IN TOPLESS BAR"), dropping him from his most recent assignment as a film critic.
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