This and That: Staying the course, adviceDirect, QE3 and more…
Why stick to an investment plan?
The past 10 years have not been a happy one for stock investors. But diversified, low-cost portfolios have generated modest returns. A New York Times column makes this point with a retired couple’s portfolio that has been through two big stock market downturns.
Carrick on adviceDirect
BMO InvestorLine recently launched a product called adviceDirect that promises to offer personalized assistance to investors (for a price, of course). Rob Carrick weighed in calling it a co-pilot for DIY investors.
What the Fed is doing?
The Federal Reserve announced new quantitative measures (dubbed QE3) this week that sent US stocks soaring to five-year highs. This article on Money magazine explains what the Fed is doing and why.
Auto Insurance Loophole
A column in The Ottawa Citizen pointed out that a little-known loophole in Ontario’s insurance rules allows auto insurers to limit the liability amount if the driver is found to be criminally negligent. In the story, a couple waiting at a bus stop were hit and killed by a driver who was later found guilty of criminal negligence. The driver’s auto insurance policy included a $1 million liability coverage but the insurer paid out just $300,000.
Loyalty is for suckers?
This blog post on the Time Magazine website looked at a report that found that auto insurance companies “reward” loyal customers by charging them more. The implication is that it is worthwhile to shop around for such things as cable, Internet, cell phone service, home and auto insurance etc.
Zvi Bodie defends his strategy