Tag

Retirement Portfolios

All articles tagged with #retirement portfolios

"Assessing the Role of Bitcoin ETFs in Retirement Portfolios and Market Survival"

Originally Published 2 years ago — by MarketWatch

The SEC's approval of bitcoin ETFs may not necessarily be a reason to buy, especially for retirement investors, as the existence of a bitcoin ETF should not change the cryptocurrency's underlying value. Itzhak Ben-David, a finance professor, predicts that both the new ETFs and bitcoin itself will likely fall in the coming days and weeks. Additionally, the rally in bitcoin's price following the SEC's decision suggests frothy investor sentiment, and a fair-value model indicates that bitcoin's fair value is currently around a quarter less than its actual price. These factors suggest that the new bitcoin ETFs may underperform a simple low-cost broad stock market index fund over the next five years.

business finance bitcoin-etfs finance investor-sentiment market-performance retirement-portfolios sec

"Unveiling the Secrets: Is Beating the Market Within Reach?"

Originally Published 2 years ago — by MarketWatch

Despite recent reports suggesting that a significant number of actively managed funds and ETFs are beating their benchmarks, it is not easier to beat the market. The argument put forth by William Sharpe in 1991 still holds true: on average, active managers must lag behind broad market indexes. While some managers may outperform in the short term, it is a zero-sum game before transaction costs and a negative-sum game after. One solution is to create separate portfolios, one for long-term index fund investments and another for speculative attempts to beat the market, acknowledging both the arithmetic truth and the psychological belief in one's ability to outperform.

business finance active-management finance index-funds investing market retirement-portfolios