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Dan Solin
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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

The Stock Picking Era Is Over

(1) Comments | Posted March 31, 2015 | 5:02 PM

I'm sure Jim Cramer will be the last one to leave the burning building, but the era of stock picking is basically over. He continues to talk about index funds as being adequate for those who don't have the time to research individual stocks, but investors -- in increasing numbers...

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Let's Redefine 'Smart Money'

(0) Comments | Posted March 18, 2015 | 9:19 AM

Frank Luntz is a corporate consultant, pollster and political consultant to Republicans. His specialty is in messaging and finding the right words to help his clients sell their products or turn public opinion on an issue or a candidate. In a fascinating interview on Frontline, Luntz made some...

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The Biggest Scam of Them All?

(0) Comments | Posted March 10, 2015 | 5:49 PM

This is the time of year when investment boards and committees in charge of selecting fund managers for pension plans and 401(k) plans gather for a time-honored ritual. They review the past performance of their fund managers and decide whether to keep or replace them.

The point of this elaborate...

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Anxiety Enriches Brokers

(0) Comments | Posted March 10, 2015 | 8:57 AM

Here's a sampling of headlines from CNBC's website as I write this post on March 10:

  • Citi: Here's where the shares could surge 70 percent
  • Why oil decline could get ugly again soon
  • These stocks should lead for the rest of 2015
  • U.S. strategists bullish, but look at their track...
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The Active Fund Industry Is Desperate

(0) Comments | Posted March 3, 2015 | 5:44 PM

Much of the massive securities industry is based on this false premise: There are "gurus" or "experts" who can identify mispriced equities, tell you when to get in or out of the market, pick mutual fund managers likely to outperform and are otherwise endowed with predictive powers.

Investors are getting...

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Change Your Investment Goal

(0) Comments | Posted February 22, 2015 | 7:55 AM

For approximately 85 percent of individual investors, their investment goal is to "beat the market." If you are one of those investors, I want you to consider abandoning that goal and making a new one. Instead, try capturing market returns for the asset classes in which you invest.

Poor...

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Avoid the Ultimate R.I.P.-Off

(0) Comments | Posted February 17, 2015 | 6:55 PM

Many estate planners advise their clients to complete a useful, albeit sobering, exercise. The exercise calls for the client to assume they have died, and that their beneficiaries are gathered around the dining room table dealing with the aftermath. The point is to identify before the fact some key estate...

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Good Looks, Bad Advice

(0) Comments | Posted February 10, 2015 | 4:50 PM

In a recent blog post for Pragmatic Capitalism, Ben Carlson did an excellent job of putting the recent surge of money into passively managed funds in context.

The shift to passive funds is still modest

The shift from active to passive strategies is understandable, given the historical poor...

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Your Genes Impact Your Investment Decisions

(0) Comments | Posted February 1, 2015 | 10:40 AM

The sharp market decline in January has raised the anxiety level of investors everywhere and brought out the worst in the financial media. Many investors are asking the wrong questions, like these:

1. Is this the beginning of a market correction?

2. Should I sell my stocks and just "sit...

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A Powerful Force Is Killing Your Retirement

(0) Comments | Posted January 21, 2015 | 9:37 AM

Investment "professionals" could be killing your chances of retiring with dignity, if at all.

This extract, from one of America's most respected financial journalists, William Bernstein, should be read and reread by every investor:

"There are two kinds of investors, be they large or small: those who don't know where...

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Dumb Investing Ideas

(0) Comments | Posted January 20, 2015 | 4:44 PM

No wonder the average investor significantly underperforms market returns that are theirs for the taking. After all, the financial media and the securities industry inundate investors with a daily barrage of new products and misleading information.

Here are some recent examples:

A dumb idea from Fidelity

As

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Investing Facts You Probably Don't Know

(0) Comments | Posted January 13, 2015 | 4:39 PM

Intelligent and responsible investing can be simple and uncomplicated. It involves buying a globally diversified portfolio of low management fee index funds, exchange-traded funds (ETFs) or passively managed funds in an appropriate asset allocation. After the initial purchase, there is very little to do except rebalancing perhaps once or twice...

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Try This Revolutionary Approach to Investing

(2) Comments | Posted January 6, 2015 | 4:40 PM

As an investor, you are probably concerned about "uncertainty" in the market. Sometimes it may feel like you are just waiting for the other shoe to drop. It probably doesn't help that the financial media appears so vocally divided between those who believe the bull market will run at least...

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Don't Repeat the Same Investing Mistakes Next Year

(0) Comments | Posted December 30, 2014 | 4:50 PM

It was a great year for stock market returns. According to data from Morningstar, as of Dec. 24 stocks representing the U.S. market returned 13.95 percent. Morningstar's intermediate core bond index returned 5.16 percent over the same period.

Even with disappointing returns in European and...

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A Surefire Way to Make Money in 2015

(2) Comments | Posted December 23, 2014 | 4:13 PM

I have a surefire way for you to make money in 2015. It's disarmingly simple, and I'm not even going to keep you waiting. Here's what I want you to do: Get into the business of managing other people's money. Specifically, become a broker and tell your clients you can...

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Investing Headlines: The Good, Bad and Ugly

(0) Comments | Posted December 10, 2014 | 2:02 PM

You can learn a lot if you read the financial headlines with the right perspective. It's unfortunate that most provide misinformation designed to encourage trading, increase anxiety and otherwise foster bad investing behavior. There are some notable exceptions, but finding them can seem like looking for a needle in a...

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Learn From the Cramer Kerfuffle

(0) Comments | Posted December 9, 2014 | 4:35 PM

I am no fan of Jim Cramer. While I fully understand his persona is a carefully crafted schtick designed to entertain, his Mad Money program harms Main Street investors. His stock-picking recommendations are no more likely to be accurate than the flip of a coin.

The myth that...

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Read This Before You Buy a Mutual Fund

(0) Comments | Posted December 2, 2014 | 4:32 PM

According to the 2014 Investment Company Fact Book, the mutual fund industry in the United States manages an astounding $15 trillion in assets. That represents a whole lot of investors who must be disappointed with the performance of their actively managed mutual funds.

Approximately 85 percent of...

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View Tony Robbins' Investing Advice with Skepticism

(14) Comments | Posted November 25, 2014 | 4:04 PM

America has discovered a new financial guru. Tony Robbins' new book on investing, MONEY Master the Game: 7 Simple Steps to Financial Freedom, has shot to the top of Amazon's bestseller list.

Mr. Robbins, who has been nicknamed the "mahatma of motivation," excels at self-promotion. The publication of...

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It's Time to Board the Index Express

(0) Comments | Posted November 18, 2014 | 3:30 PM

The news keeps getting worse for active management. Here's a summary:

Poor year-to-date performance

In an article on MarketWatch.com, Mitch Tuchman references data from Bank of America indicating only 17.7 percent of active managers have beaten a large-cap index benchmark year to date. That is a significant...

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