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| News Features
Is 'A Random Walk' still valid? For CBS MarketWatch, March 2002 It's been almost 30 years since Burton Malkiel's book "A Random Walk Down Wall Street" first shook the investment world with the bold claim that throwing darts at a list of stocks is as good as following the average fund manager. But a lot has happened in the last few years that calls into question the efficient market theory that Malkiel used to back up his claims. For example, if markets are so efficient, how could stocks of Internet companies with no clear outlook for earnings soar 800 and 900 percent in 1998 and 1999? And how could the same stocks now be trading at less than a dollar? Or how could a company like Enron (ENRNQ: news, chart, profile) mislead investors into thinking it's worth $80 billion? Malkiel insists his theories hold up, even in the current market in which volatility is at all time highs, and corporate transparency is being put to the test. "Yes, markets sometimes make mistakes," he said in an interview. "But the true value will always come out."
Four reasons to
broaden your investment horizon Many U.S. investors do not bother with foreign stocks for two reasons: domestic markets offer plenty of opportunities and researching foreign stocks is too difficult. Both beliefs are mistaken. There are four main reasons for investing abroad. The first is simply to increase choice. The second, across nearly every industry - banking, insurance, industrials or telecommunications - global operations are rendering a corporate domicile increasingly irrelevant. Third, as markets deregulate abroad, investors can discover foreign companies with far greater growth potential than can now be found in the US. The fourth reason is that foreign companies may excel in certain businesses that simply have not matured in the US. But how does one find undiscovered stocks, and verify that the company is the real thing?
New SEC chairman to bring change For Banc One Investment Advisors, August 2001 The nomination of securities law expert Harvey Pitt to head of the Securities and Exchange Commission sailed through the U.S. Senate with no significant opposition. Now the hard work begins. Pitt has promised an ambitious review of the rules and regulations governing the country's securities markets -- a body of law rivaled perhaps only by the Internal Revenue code for its scope and complexity. Any changes could have serious and far-reaching effects on both small and large investors.
Protect your assets -- by overcoming fear For Banc One Investment Advisors, September 2001 Fear has gripped America. Fear of terrorists. Fear of flying. Fear of walking down a street in Manhattan or taking a subway in Washington D.C. or of standing next to a tall building anywhere in the country. And fear has also gripped our finances. It was scared money that caused the 7 percent drop in the Dow Jones on Sept. 17, and that same fear has prompted people to pull money out of bank accounts and brokerage houses for fear they might not be able to get at it. That fear is unfounded. At no time in America’s history have the masses been unable to get at their deposits and investments
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