Professor Burton Malkiel of the Rebalance Investment Committee shows how investors chase stocks too high then sell out at market bottoms and explains how Rebalance works to overcome this human bias toward investing. Continue reading →

Jay Vivian, former managing director of the IBM Retirement Funds, on why people seem turned off by indexing, despite the evidence that index investing consistently provides steady gains while limiting the risk of loss. Continue reading →

Professor Burton Malkiel of the Rebalance Investment Committee tells the story of Warren Buffett’s “cost of hamburgers” quiz that shows how people misunderstand stock prices. See more powerful advice on stock prices for everyday savers. TRANSCRIPT Warren Buffett is probably the world’s greatest investor. And he tells this wonderful story in one of his essays.… Continue reading →

If you follow the financial media day-to-day, you get caught up in a narrative that is as appealing as it is wrongheaded. It goes something like this: You must know what’s going on, because you must take action immediately. It’s wrongheaded because almost nobody should be trying so hard to outmaneuver the market. Even the… Continue reading →

Professor Charles D. Ellis of the Rebalance Investment Committee explains how diversification lowers the risk of unexpected losses in a portfolio, providing what Burton Malkiel calls “the only free lunch in investing.” Continue reading →

We’ve heard a lot recently about how Americans aren’t going to have much of a retirement. We’ll work longer and have less, and things don’t look much better for our underemployed kids. Such headlines induce a feeling of paralysis, I know. Why bother, you might conclude, if there’s no hope? Yet there are plenty of… Continue reading →

Professor Burton Malkiel of the Rebalance Investment Committee on how lower fees mean a higher net return for investors. Continue reading →

If you’ve been paying attention to the financial news these days, it’s been hard to avoid dire headlines from abroad. Argentina is sliding toward a currency collapse. Turkey is in political turmoil. Venezuela is slipping fast. As a retirement investor, such news might give you pause. After all, it’s likely that you own at least… Continue reading →

Professor Burton Malkiel of the Rebalance Investment Committee explains why investors who stick with diversification make money even when markets seem correlated and unlikely to achieve a positive investment return. Continue reading →