As the market continues to erase every pullback in short order, investors are focusing less on downside risk and more on  upside potential. Controlling losses is no longer a priority.  As the markets heat up, investors want a piece of the action. As contrarians, that isn’t our approach, and it shouldn’t be yours, either. Ideally, concern for downside should rise along with the market, just as ensuring you’re positioned for the rebound should be your objective during a long bear market.  ...read the rest of this article»

Welcome back, dear readers. As temperatures (and the stock market) continue to rise, it’s time for Part II of our two-part summer beach read about potential causes of the next market drop. ...read the rest of this article»

It's not clear where the next significant slide will come from. We don’t have a broad tech and growth stock bubble like we had in 2000. We don’t have a real estate bubble propping up the economy. Not that you need a reason for the stock market to slide. There's still no consensus as to what caused the crash of 1987, and experts differ on the reasons for the 1929 crash as well as the depth of the economic problems following the slide. ...read the rest of this article»

While it's true that stocks are the best-performing investment in the long run, they're also one of the most volatile, which can trigger poor returns far worse than the other lesser  asset classes, despite the fact that they often have stability going for them. ...read the rest of this article»

 Flash Boys isn't about a devastating Madoff-esque Ponzi scheme. It's more about how Wall Street as an industry can maim a portfolio with a thousand cuts, the razor of focus this time being sophisticated front running computer schemes. ...read the rest of this article»

After a largely uninterrupted five-year run-up in stocks that began in early 2009, optimism is high, but so are doubts over the sustainability of good times for stocks. ...read the rest of this article»

Some part of us sort of root for a pullback. Here are some reasons nearly any investor (not just Bobby McFerrin) should stop worrying and even be happy about a drop in stocks. ...read the rest of this article»

This will be a risky five-year stretch, with 20% drops possible at the first sign of any economic hiccup, foreign or domestic. Without bubble-grade stock valuations or underlying large-scale economic problems like real estate speculation, 50%+ stock drops are less likely than they were during past peaks, yet always possible. ...read the rest of this article»

After years of separation, investors have finally rekindled their love affair with stocks. That on-again, off-again romance is definitely back on again, with billions going back into stock funds each month. Investors' infatuation with bond funds is also ending. Nearly $100 billion have come out of bond funds in 2013. They're just not that enticing anymore. Does this mean we should expect trouble down the road for the stock market, and if so, what sort? ...read the rest of this article»

As the stock market continues to rise, we hear experts claiming stocks are not that expensive compared to bonds. They cite modest P/E ratios and record earnings. While the P/E ratio of the market (looking at real earnings, not future expected earnings) is far from a historical bargain, it has been pricier in the past.  ...read the rest of this article»