It’s the Trump era. Or a re-do of the Reagan era. Or possibly the “I don’t understand how to work this” era. How should investors navigate this complex new world of what-if scenarios? For once, even the pundits seem unsure.   

 

Who wasn’t as election results rolled in? Few expected the 45^th president of the United States to be a real estate developer with multiple business bankruptcies and a sideline career as a reality TV show host. Is now the time to rejigger your portfolio? Before you act, check out this month’s feature section on how not to become your own worst enemy.

Presidential elections give rise to all kinds of market predictions. This year, the polarization of American political parties and attention-grabbing remarks by Donald Trump are bringing out the pundits in droves. Our advice: keep calm, carry on, and don’t react to the doomsday scenarios.

Like the wallflower who becomes popular, passively invested index funds are turning heads and inciting foes. Some big guns of the active investment industry are warning of dangers ahead if passive investing gets too big. Despite recent heated rhetoric, there are interesting and valid questions about where it could all lead.

With markets climbing and the Dow hitting a new high, why are investors feeling uneasy? There are plenty of reasons. Chief among them: the global economy is in the doldrums. But there’s more than one way to read the situation, and some analysts see a turning point ahead.

VOLATILE FIRST HALF CAPPED BY RATE DROP AND STOCK RALLY. While most diversified investors earned decent returns in the first half of the year, wild market swings along the way fed our collective uncertainty. What does volatility tell us about future returns? We’ll look at what’s been roiling the markets and a new DFA study, then review the numbers.

What A Difference A Day Makes. Explosive shock” is how one Reuters headline described the reaction to yesterday’s vote that severed UK ties with the European Union. Markets around the world plunged as analysts and pundits struggled to understand long-term implications. Investors were stunned, wondering where the unraveling of the EU will end. 

The recent death of Mohammad Ali made me think about what it means to live by one’s principles, and how that can change your life. Ali was no saint, to be sure. But he taught me one of my earliest lessons in standing up for what you believe in.

Diversified investors were rewarded in April as international markets rebounded and volatility decreased.

A WIN FOR CUSTOMERS. In any other industry, requiring professionals to act in the best interests of their clients might seem like a no-brainer. But this is the financial industry we’re talking about. In early April, the Department of Labor announced new rules requiring financial professionals to adopt a fiduciary standard, placing client interests ahead of their own. This could be a game-changer