A Word About Risk – Morning Linkfest (July 21)

by Aaron Levitt | July 21, 2014 9:14 am

A Word About Risk – Morning Linkfest (July 21)

Anybody else notice their portfolio doing a fair bit of rocking these days? From downed civilian planes and conflict in the Gaza Strip to poor earnings guidance and weak economic conditions, it’s getting pretty dicey out there. “Risk” has returned to the stock market in a major way. But how do we know if this risk is real or not? Market technician Chris Ciovacco at the Short Takes blog has a nice video on how to determine the answer[1].

Yahoo Finance (Michael Santoli): So when does current malaise become a full-blow correction[2]?

Pragmatic Capitial (Cullen Roche): Using value metrics — like price-to-earnings or price-to-book — aren’t helpful in timing a market top[3].

USA Today (John Waggoner): But that doesn’t mean that stocks won’t go higher, even despite all the risk. In that case, buy an index fund[4].

The New York Times’ Your Money (Jeff Sommer): You should just buy that index fund anyway. You can’t beat the market frequently. Seriously, you can’t[5].

FT Alphaville (Dan McCrum): You know who else can’t beat the market? Most hedge funds[6].

Servo Wealth Blog (Eric D. Nelson): At least take a chill pill before you do anything with your portfolio. Especially if it involves dialing up risk[7].

Financial News (Mike Foster): Although, there can be something said for owning more stocks when you get closer and move into retirement. A new model of thinking[8].

Bloomberg View (Pankaj Mishra): China is still very much in charge when it comes to the emerging world[9].

Vox (Todd VanDerWerff): Remembering James Garner, a badass actor[10].

Endnotes:
  1. how to determine the answer: http://ciovaccocapital.com/wordpress/index.php/stock-market-us/stocks-volatility-to-respect/
  2. a full-blow correction: http://finance.yahoo.com/news/when-does-the--stealth-correction--become-the-real-thing-023126911.html
  3. aren’t helpful in timing a market top: http://pragcap.com/this-might-be-a-stock-bubble-but-valuation-metrics-wont-help-you-understand-that
  4. buy an index fund: http://www.usatoday.com/story/money/columnist/waggoner/2014/07/17/investing-what-to-buy-when-expensive/12798753/
  5. Seriously, you can’t: http://www.nytimes.com/2014/07/20/your-money/who-routinely-trounces-the-stock-market-try-2-out-of-2862-funds.html?_r=0
  6. Most hedge funds: http://ftalphaville.ft.com/2014/07/21/1903102/one-in-four-lose-some-more/
  7. Especially if it involves dialing up risk: http://servowealth.com/resources/articles/snails-and-buffalos
  8. A new model of thinking: http://www.efinancialnews.com/story/2014-07-16/defined-contribution-pensions-robert-arnott-research-affiliates
  9. emerging world: http://www.bloombergview.com/articles/2014-07-20/china-is-driving-the-brics-train
  10. badass actor: http://www.vox.com/2014/7/20/5919883/james-garner-death-best-roles-maverick

Source URL: http://investorplace.com/2014/07/risk-linkfest-index-funds/
Short URL: http://invstplc.com/1mw9KKc