iOS app Android app

Dan Solin
GET UPDATES FROM Dan Solin
 
Dan Solin is The New York Times' best-selling author of the Smartest series of books. His next book, The Smartest Sales Book You'll Ever Read, will be published in March, 2014.

Entries by Dan Solin

Fama and Booth Weigh In On Brexit

(0) Comments | Posted June 24, 2016 | 5:52 PM

2016-06-27-1467048023-2187514-27841264756_5d32079576_zbrexit.jpg
Photo courtesy of Flickr.



When news of the Brexit vote broke, the financial media went into an overdrive of speculation bordering on hysteria. There was much talk about potentially devastating scenarios, including "turmoil" to global markets.

...
Read Post

An Endless Cycle of Broker Misconduct?

(0) Comments | Posted June 12, 2016 | 11:36 AM

2016-06-14-1465928947-7898206-7721851920_d8f4b038da_zWallStreet2.jpg
Photo courtesy of Flickr.



Oppenheimer & Co., along with many other brokerage firms, has experienced a litany of regulatory issues. You can find a list of sanctions imposed by FINRA on the firm here and a list...

Read Post

A Culture That Encourages Misconduct?

(2) Comments | Posted June 11, 2016 | 9:08 AM

2016-06-13-1465856349-3318580-71966603_510df3d875_zwallstreet.jpg
Photo courtesy of Flickr.



When I started writing books about a decade ago, I took the position that no one should rely on a broker for financial advice. My reasoning was simple. I had never met a broker...

Read Post

Mad Money. Questionable Ethics.

(2) Comments | Posted May 30, 2016 | 2:27 PM

2016-06-03-1464975838-1396405-6848823919_724f516a05_zmadmoney.jpg
Photo courtesy of Flickr.



Yet another peer-reviewed article has assessed the stock-picking ability of Mad Money's Jim Cramer and found it lacking.

Cramer underperformed the S&P 500 index

The paper was co-authored by an MBA candidate and...

Read Post

All Fiduciaries Aren't Created Equal

(0) Comments | Posted May 28, 2016 | 11:36 AM

2016-06-01-1464806230-1688912-16836490731_557a051447_z1invest.jpg
Photo courtesy of Flickr.



Robo-advisors have had a significant -- and generally positive -- impact on the financial services industry. The term typically refers to services that use models and algorithms to invest client portfolios, often in exchange-traded...

Read Post

An IRA With No Fees and No Risk

(0) Comments | Posted May 22, 2016 | 7:01 AM

2016-05-23-1464024592-896952-7027606047_cac49c3b79_zretirement.jpg
Photo courtesy of Flickr.



According to a recent poll conducted by The Associated Press-NORC Center for Public Affairs Research, two-thirds of Americans earning between $50,000 and $100,000 would find it difficult to come up with $1,000 to...

Read Post

A Stock Tip That Went Horribly Wrong

(1) Comments | Posted May 14, 2016 | 8:04 AM

2016-05-18-1463585698-9764093-7651028854_38a082a60c_ostockpricecrashhorriblywrong.jpg
Photo courtesy of Flickr.



Of all the misinformation disseminated to investors, the most pernicious supports the belief that some "investment pro" or pundit has the skill to reliably pick outperforming stocks. This myth is perpetuated by endless blogs...

Read Post

The Three Biggest Investing Anomalies

(1) Comments | Posted May 7, 2016 | 7:05 AM

2016-05-09-1462829167-3179588-10311228024_c140af1e9a_z1WarrenBuffett.jpg
Photo courtesy of Flickr.



There are many anomalies in investing. It wasn't easy to isolate the three biggest ones, but here are my choices:

1. You love Warren Buffett, but ignore his advice.

Warren Buffett has rightfully

Read Post

Complexity Is the Investing Devil

(0) Comments | Posted April 28, 2016 | 7:08 AM

2016-04-28-1461866407-7761431-384027019_5e64727276_zcomplexitycomplexity.jpg
Photo courtesy of Flickr.



What do the following investments have in common?

  • Options
  • Covered calls
  • Collateralized mortgage obligations
  • Non-traded REITs
  • Master limited partnerships
  • Variable annuities
  • Equity-indexed annuities
  • Hedge funds
  • Principal protected notes
  • Private equity

Here's the answer: They...

Read Post

A Simple Strategy Your Broker Hopes You Won't Learn

(0) Comments | Posted April 26, 2016 | 1:31 PM

2016-04-28-1461861453-7743736-16650218480_0524faa908_zfeesfees.jpg
Photo courtesy of Flickr.



The data is irrefutable. There's a direct correlation between low fees and higher expected returns. Two recent studies from Morningstar bring this point home in a powerful way.

The significance of low fees

In the...

Read Post

Rip-offs on a Massive Scale

(0) Comments | Posted April 18, 2016 | 10:03 AM

2016-04-19-1461101931-9473711-16689216443_83ae71832f_zmoneycount.jpg
Photo courtesy of Flickr.



Why settle for ruining the retirement dreams of one individual investor at a time when doing so on a massive scale is far more lucrative? That seems to be the strategy of some retirement plan...

Read Post

It's Still Open Season on Retirement Plan Participants

(2) Comments | Posted April 12, 2016 | 5:18 PM

2016-04-08-1460152859-2229290-11746719224_25675af5b1_z1fiduciary.jpg
Photo courtesy of Flickr.


Don't get me wrong. I believe the new fiduciary rule recently announced by the Department of Labor (DOL) will be a net plus for retirement plan participants. The rule expands the definition of "fiduciary investment...

Read Post

A Rational Explanation for Irrational Investing

(0) Comments | Posted April 4, 2016 | 6:46 AM

2016-04-04-1459792820-4311260-5537894072_c4e46bfce1_zinvesting.jpg
Photo courtesy of Flickr.



It can be frustrating being an advocate for evidence-based investing. The data supporting a simple buy-and-hold strategy (with periodic rebalancing) of a globally diversified portfolio of low-management-fee index funds is overwhelming.

Few investors understand...

Read Post

A Bold Way to Pick 'Winners'

(0) Comments | Posted March 27, 2016 | 9:19 AM

2016-03-28-1459194959-804757-6947127648_499a001d07_zroulettegamble.jpg
Photo courtesy of Flickr.



It's a mystery to me why so many investors pay brokers to pick "winning" mutual funds. But they do, and it turns out that they aren't alone in this often fruitless quest. Pension funds pay...

Read Post

You're No Match for Wall Street

(0) Comments | Posted March 21, 2016 | 9:20 AM

2016-03-22-1458685037-5472434-2207307656_b71dc9d2ef_z1greedfist.jpg
Photo courtesy of Flickr.



Wall Street has an alarming number of shady practices geared to transfer your money to itself. Main Street investors are outgunned and ill-equipped to deal with its chicanery.

Conflicts of interest abound

There's a...

Read Post

Don't Be a 'Low-Information' Investor

(0) Comments | Posted March 12, 2016 | 7:48 AM

2016-03-15-1458056299-2423348-6372144917_f1ba7439ec_zinformation.jpg
Photo courtesy of Flickr.



There's a lot of talk in the media about "low-information" voters. Ted Cruz may be responsible for coining the term. He referred to supporters of Donald Trump as those "who have relatively low...

Read Post

A Plan to Stop the Pension Plan Rip-Off

(0) Comments | Posted March 7, 2016 | 6:37 AM

2016-03-07-1457387422-2940432-6266423489_500f0f0e66_zclaimformpension.jpg
Photo courtesy of Flickr.



It's small consolation that your broker is only harming one client at a time by claiming the ability to "beat the market." Recommending actively managed funds, private equity, individual stocks and alternative investments is...

Read Post

Boring Advice. Better Expected Returns

(0) Comments | Posted March 3, 2016 | 6:40 AM

2016-03-04-1457112316-4783356-14599002424_c2601e00a0_zglobalforex.jpg
Photo courtesy of Flickr.



The financial media went into overdrive hyping the sharp decline that the market experienced at the beginning of 2016. Much less has been made of the recovery of the S&P 500 Index, which

Read Post

Genius, Hypocrisy and Chicanery

(0) Comments | Posted February 16, 2016 | 4:34 PM

2016-02-08-1454962724-6966084-5731804409_e29f7fa961_zWallStreetNYSE.jpg
Photo courtesy of Flickr.



Genius

Some of the best and brightest people -- often graduates of our finest business schools -- work on Wall Street. They are highly skilled at what they do. Here's a summary of their "genius"...

Read Post

Ignore Advice to "Do Something"

(0) Comments | Posted February 16, 2016 | 8:39 AM

2016-02-18-1455836659-3654996-2899155411_9fde194046_zfinancialmediaNYSE.jpg
Photo courtesy of Flickr.



Almost every day I get an email from a concerned investor. Their litany of worries includes the terrible start to the year, market uncertainty, geopolitical risk and concern over who will be elected as the...

Read Post