UPDATE: Rather than updating this blog entry with new sites, I've added sections with links to investing blogs and web sites I like. See the navigation bar to the right, under the blog archives.
The site I ran across today is moneychimp.com. I happened to stumble on it when searching the internet for articles on the Fama-French 3 factor model of valuing stocks ( although I didn't mention it specifically, the 3 factor model is the academic underpinning of the discussion in my previous post -- Asset Allocation: Part 2 -- of the higher returns provided by value and small cap stocks over the last 80 years; the other factor -- besides size and value -- is simply exposure to the stock market). Moneychimp.com has some interesting articles that you might want to read if you want to dig deeper into some of the topics I touch on in this blog. They have articles on the following topics, among others:
- Index Funds
- Modern Portfolio Theory (this article discusses the Fama-French 3 factor model)
- How Much are Stocks Worth (stock valuation)
- The Rule of 72 (quickly estimating how long it will take your money to double at a given interest rate)
- Dollar Cost Averaging (about 2/3 of the time, DCA doesn't work as well as just investing a lump sum all at once, so statistically, DCA is an inferior investment strategy)
Another favorite site of mine is marketminder.com. I highly recommend this site to anyone who reads or watches any financial news, or who just wants the highlights of today's financial news, along with a rational perspective on it. They have a Cover Story most days that is educational, rational, and dispels investing myths that many people believe. They also have a Today's News section that sorts news stories into Sensible Stories and Market Misperceptions. There's a brief Marketminder's View blurb below the link to each news story, which is usually all I read. Just reading these blurbs can help you keep some perspective, and not be overly alarmed by the financial news you might be reading or viewing elsewhere. Finally, there's a Columns section that has one or two educational articles added each month.
Other than MarketMinder, a couple of investing blogs that I recommend are:
investorwords.com. For example, if you're reading one of my blog articles, and you don't understand a term I use, chances are you'll find an understandable definition at investorwords.com. You might start by going to the site and reading the definitions for stock, equities, bond, fixed income, security, mututal fund, index fund, and ETF. A very useful feature of investorwords.com is that each investing term used in a definition includes a link to the definition of that term. For example, the definition of equities includes links to the definitions for equity, instrument, corporation, share, assets, and earnings, among others. If you find a definition confusing, feel free to post a comment here describing what it is you don't understand, and I'll try to further clarify.