The top 5 that I absolutely recommend reading. Here they are:
1. Rebalancing and Asset Allocation: Critical For Investing: In reality, one of the most important parts of investing — perhaps THE most important part, besides starting early — is your asset allocation. This is basically the way you’ve laid out the pie chart of your portfolio: How much do you have in equities (stocks)? How much in bonds? And how does it change over time?
2. Sandip Sabharwal on the Markets: He says, “The sharp improvement in the real economy has led to a sharp improvement in the operations of a large number of smaller sized companies. However a similar improvement does not seem to have happened in their stock prices. This should follow through over the next few weeks as the results for the first quarter of the current financial year come through.
Overall I would think that the next few weeks should see a 4-5% upmove for the indices and a 8-10% upside for the broader markets.”
3. Just Say No! to these products. Excerpts: “Not to pick on Motley Fool in particular. Flip open an old issue of Fortune or SmartMoney or Kiplinger’s, and you’ll find the same thing over and over: not only do the hand-picked portfolios almost never outperform the market, but you’ll frequently punch in a ticker symbol and find that the stock has been delisted. The company went out of business, and the stock went to zero.
“Wall Street needs you to believe that picking stocks and timing the market is the winner’s game, because it’s the winner’s game for them,” says Larry Swedroe, director of research for BAM Advisor Services and author of many books on investing. “They make money every time you trade.”
4. SEBI, IRDA & ULIPs: Hurried solution leads to bad law: It says, “The ordinance does not include any provisions to deal with misselling. The ordinance also does not address IRDAs lack of enforcement capabilities vis a vis SEBI. The ordinance does active harm and removes provisions that previously protected investors. By amending the Securities Contract Regulation Act, insurance instruments are now not considered securities for the purposes of the Act”
5. The Psychology of Money Excerpts: Peter Tufano, professor of consumer finance at Harvard Business School, says that many people confuse a lowered rate (on car insurance), or getting a discount (25% off a TV) with saving money. “It’s not savings until you save it,” he says.
You Need to Turn the Numbers Into Real Cash
Sounds easy, but it’s not. Making sure that mental savings morphs into tangible cash in your account is one area where your brain isn’t your best financial friend. You can thank a psychological phenomenon that economists have dubbed malleable mental accounting.”
Let me know if you found some interesting links on personal finance. Thanks.
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