Wednesday Reading List
The Junk in Your Index Fund Is Costing You Big-Time by The Wall Street Journal
Passive investing has many advantages to it, but an overlooked issue is that sometimes you don’t want to own everything since everything includes low quality junk the index fund is forced to buy to accurately replicate the index. If you choose to go fully passive, you still have to understand how the index is constructed since you have choices in each category.
Southwest Airlines plans to start assigning seats, breaking with a 50-year tradition by The Associated Press
The dumbest boarding process in the industry is coming to an end in yet another example that there is no airline that should be an investor darling. It’s a tough industry and quality comes and goes.
FAFSA: Is it an Asset? by the College Financial Lady
It’s getting close to FAFSA season. Here’s a list of things that are considered assets and those that aren’t.
What Investors Really Need To Pay Attention to in This Election by Investopedia
This is an excellent podcast episode. The past month has been one of the most chaotic four weeks in U.S. political history, and the election is still over three months away. Michael Townsend, Charles Schwab’s political analyst and a long-time Washington watcher, joins The Express to explain what’s next in the political process for the Democrats, the likelihood of major policy changes to tax rates and the Inflation Reduction Act, and what investors should stop worrying about as the election approaches. Plus, the history of stock market returns during election years, and why investors need to stay the course no matter what the polls say or who ends up occupying the Oval Office.
Trade War 2.0: Should Investors Prepare? by Charles Schwab Asset Management
Not exactly a new story if you’ve been paying attention, but this article goes further by dissecting what could happen with more tariffs based on recent history. Stocks may see increased volatility, but not more downside risk. Some pockets of inflation may develop, but not across the board with each product, and there doesn’t seem to be a big threat to economic growth.
Indications of Easing Inflationary Pressures by Professor Jeremy Siegel
In his weekly commentary, Professor Siegel shares that he’s seeing good economic data, commodity prices coming down which helps inflation, and a continued market rotation into small cap and value.
Book Recommendation
Yellowface: A Novel by R.F. Kuang
White lies. Dark humor. Deadly consequences… Bestselling sensation Juniper Song is not who she says she is, she didn’t write the book she claims she wrote, and she is most certainly not Asian American—in this chilling and hilariously cutting novel from R.F. Kuang, the #1 New York Times bestselling author of Babel.
Boston Corner
Things to Do in Boston This Weekend
Things to Do This Week in Boston