Advisers’ Stock Recommendations Drag Down Clients’ Portfolios

Investors trading stocks with assistance of financial advisers are more diversified and overcome some common pitfalls, a new working paper from European researchers found. But they are worse off overall than investors who trade independently, because their stock purchases underperform, the study says. The findings suggest advisers “do not help investors make superior stock purchases,”…

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Size Matters

With all the chatter about ETF’s I thought I would generate a dodgy collection of ETF’s and then look at their current market capitalisation. When I started the exercise I was interested to see where the liquidity risk might lie within the spectrum of the ETF’s I was looking at. When looking at an instrument…

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What A Brilliant Idea

This is a rare feel-good story about financial literacy. In 1996, John Rogers, head of $11 billion Ariel Investments, helped start an elementary school focused on financial education in a low-income neighborhood on the South Side of Chicago. Each class gets a portfolio and buys and sells its own stocks. Students get a portion of…

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