Search found 33671 matches

by nisiprius
Mon Dec 18, 2017 11:37 am
Forum: Investing - Theory, News & General
Topic: Is Menards the future of retail? If so, what does it mean?
Replies: 37
Views: 1854

Re: Is Menards the future of retail? If so, what does it mean?

The other day we were shopping in Toys "ᴙ" Us, possibly because we wanted to shop there one last time or possibly because we just wanted a really big "toy store." The "portfolio" of what was on the shelves were heavily tilted toward Toys "ᴙ" Us house brands. There's quite a lot of that going on ever...
by nisiprius
Mon Dec 18, 2017 7:57 am
Forum: Investing - Theory, News & General
Topic: 60/40 split - bond index vs money market
Replies: 8
Views: 790

Re: 60/40 split - bond index vs money market

Traditionally, the basic asset allocation is stocks/bonds/cash (aka equities/fixed income/short-term reserves) and the three asset classes are regarded as being different. (A money market fund is cash in the usual loose sense of the term). However, there is much more difference between stocks and bo...
by nisiprius
Sat Dec 16, 2017 1:17 pm
Forum: Investing - Theory, News & General
Topic: Vanguard TSM prospectus says up to 80% of the assets in the index need to be bought only
Replies: 6
Views: 763

Re: Vanguard TSM prospectus says up to 80% of the assets in the index need to be bought only

Yes, I know. I hate it. I gripe about it. Regulations require 80%, and for whatever reason no fund company seems to be willing to go in inch farther than the regulations require. It doesn't tell you what they might do in the future, but if you read the annual or semiannual report for a fund--in this...
by nisiprius
Sat Dec 16, 2017 1:02 pm
Forum: Investing - Help with Personal Investments
Topic: When to move into bonds
Replies: 47
Views: 3540

Re: When to move into bonds

...Are there other investments that would reduce risk as well as diversify?... I don't think so--not in any robust, reliable, or serious way. Bonds are just intrinsically different from stocks. Fine tuning tweaks among stock allocations just aren't a powerful or a trustworthy lever. Here is a rando...
by nisiprius
Sat Dec 16, 2017 12:15 pm
Forum: Investing - Help with Personal Investments
Topic: Is anyone putting money aside into Gold?
Replies: 54
Views: 2866

Re: Is anyone putting money aside into Gold?

I have been taking great interest in gold recently and gold mining companies... Has anyone else considered this? No. But I don't understand why you are mentioning "gold" and "gold mining companies" in the same breath, as I believe both gold advocates and gold skeptics agree that these are completel...
by nisiprius
Sat Dec 16, 2017 12:02 pm
Forum: Investing - Theory, News & General
Topic: Factor-Based Investing: The Long-Term Evidence - Dimson & Marsh
Replies: 92
Views: 3834

Re: Factor-Based Investing: The Long-Term Evidence - Dimson & Marsh

...Here's the problem: The HmL series is a differential return and involves 0 net investment, unlike stocks or most other assets you mix using these efficient frontiers. You're penalizing allocations using HmL. For illustration, consider the 100% HmL portfolio in our frictionless world. You get a 4...
by nisiprius
Sat Dec 16, 2017 11:05 am
Forum: Personal Consumer Issues
Topic: Uber vs Ambulance - HUGE cost difference
Replies: 58
Views: 6270

Re: Uber vs Ambulance - HUGE cost difference

Likewise, if I have a broken arm and can't drive, I'd call Uber, not an ambulance. If I was an Uber driver I'd refuse any rider who was injured and wanted me to drive them to the hospital. I wouldn't want the liability of making their injury worse, or the responsibility to try to monitor them to en...
by nisiprius
Sat Dec 16, 2017 11:03 am
Forum: Investing - Theory, News & General
Topic: Factor-Based Investing: The Long-Term Evidence - Dimson & Marsh
Replies: 92
Views: 3834

Re: Factor-Based Investing: The Long-Term Evidence - Dimson & Marsh

...In the real world, investors get the factor premium PLUS the base return. Or did I completely misunderstand what you are doing?... Not sure about the terminology. I'd say: A long-only portfolio of large blend stocks, e.g an S&P 500 fund or (if you want to be purer) the Vanguard Large-Cap Stock I...
by nisiprius
Sat Dec 16, 2017 10:26 am
Forum: Investing - Theory, News & General
Topic: Factor-Based Investing: The Long-Term Evidence - Dimson & Marsh
Replies: 92
Views: 3834

Re: Factor-Based Investing: The Long-Term Evidence - Dimson & Marsh

PS. I wouldn't mix Fama-French data with SBBI data. They define 'size' in a very different manner. I get essentially the same results, as I stated earlier, if I use the Fama French Benchmark Portfolio B/M series instead of the SBBI Large Stocks series. See below. Er, the factor as you defined it (H...
by nisiprius
Sat Dec 16, 2017 10:07 am
Forum: Investing - Theory, News & General
Topic: Factor-Based Investing: The Long-Term Evidence - Dimson & Marsh
Replies: 92
Views: 3834

Re: Factor-Based Investing: The Long-Term Evidence - Dimson & Marsh

I posted this once before and didn't think I got a full answer, so I'll try again. Very likely I have done something wrong, but I don't know what it is. 1) I downloaded the data for the HmL factor from the Ken French data library website, while for "large stocks" I used the SBBI series, which is the...
by nisiprius
Fri Dec 15, 2017 6:04 pm
Forum: Investing - Help with Personal Investments
Topic: What happened to Bridgeway???
Replies: 14
Views: 1378

Re: What happened to Bridgeway???

Here's what a 2012 distribution looked like, on a price chart and on a growth chart. Take a look at this year's data the same way in a few days

Image
by nisiprius
Fri Dec 15, 2017 5:50 pm
Forum: Investing - Theory, News & General
Topic: Factor-Based Investing: The Long-Term Evidence - Dimson & Marsh
Replies: 92
Views: 3834

Re: Factor-Based Investing: The Long-Term Evidence - Dimson & Marsh

One of the things that I don't quite understand... I had originally thought that factors were extracted by a mathematical technique called factor analysis. I've never been deeply enough into it to know offhand just how that works. It's similar, but not identical to principal components analysis, whi...
by nisiprius
Fri Dec 15, 2017 1:59 pm
Forum: Personal Consumer Issues
Topic: Uber vs Ambulance - HUGE cost difference
Replies: 58
Views: 6270

Re: Uber vs Ambulance - HUGE cost difference

A couple of years ago... I can't prove that the EMTs who started IV fluid and had it running during the ten minutes it took to get me to the ER saved my life. But even if it didn't, it might have contributed to a good outcome. (Like, my arriving at the ER conscious and being able to talk to them...)...
by nisiprius
Fri Dec 15, 2017 12:35 pm
Forum: Investing - Theory, News & General
Topic: No Silver Bullets: 8 Ideas for Financial Planning in a Low-Return Environment
Replies: 8
Views: 1497

Re: No Silver Bullets: 8 Ideas for Financial Planning in a Low-Return Environment

Did anyone else have the same feeling I had? Like the adolescent at the convenience store, "one loaf of bread, one quart of milk, one copy of Playboy ..." in this case, one reduced fees, one increased savings, one Weird Portfolio? The Weird Portfolio is updated one per quarter. I'm not entirely clea...
by nisiprius
Fri Dec 15, 2017 12:20 pm
Forum: Investing - Theory, News & General
Topic: No Silver Bullets: 8 Ideas for Financial Planning in a Low-Return Environment
Replies: 8
Views: 1497

Re: No Silver Bullets: 8 Ideas for Financial Planning in a Low-Return Environment

Ah. I see that "size" is no longer in the pantheon.

Is "defensive" yet another name for "low volatility?"

Image
by nisiprius
Fri Dec 15, 2017 11:21 am
Forum: Investing - Theory, News & General
Topic: Factor-Based Investing: The Long-Term Evidence - Dimson & Marsh
Replies: 92
Views: 3834

Re: Factor-Based Investing: The Long-Term Evidence - Dimson & Marsh

I'm puzzled by this sentence: Almost all investors are knowingly or unknowingly exposed to factors such as size, value, yield, momentum, and risk. Two questions. First, what on earth is meant by "risk?" Is risk, itself, a factor? Is that a mistake, and did they mean to say "the market factor?" Or h...
by nisiprius
Fri Dec 15, 2017 11:13 am
Forum: Personal Finance (Not Investing)
Topic: LTC policy increase - keep, reduce coverage or ditch?
Replies: 18
Views: 1354

Re: LTC policy increase - keep, reduce coverage or ditch?

...Self insurance is always a good option... Self insurance is a contradiction in terms. "Insurance" involves the concept of a risk pool, in which premiums from the people who don't encounter bad luck pay for the claims of those that do. There must be a large group of people involved for it to be "...
by nisiprius
Fri Dec 15, 2017 10:01 am
Forum: Investing - Help with Personal Investments
Topic: ETF vs MF for day pricing
Replies: 4
Views: 253

Re: ETF vs MF for day pricing

As applicable just look at the price of the equivalent ETF. By knowing the % gain or loss on an ETF at any given moment you can apply that against your MF to know its value at that moment. If there is no ETF then there is now way that I am aware of. I was going to say that, with a note that you sho...
by nisiprius
Fri Dec 15, 2017 9:23 am
Forum: Investing - Theory, News & General
Topic: Factor-Based Investing: The Long-Term Evidence - Dimson & Marsh
Replies: 92
Views: 3834

Re: Factor-Based Investing: The Long-Term Evidence - Dimson & Marsh

I'm puzzled by this sentence: Almost all investors are knowingly or unknowingly exposed to factors such as size, value, yield, momentum, and risk. Two questions. First, what on earth is meant by "risk?" Is risk, itself, a factor? Is that a mistake, and did they mean to say "the market factor?" Or ha...
by nisiprius
Fri Dec 15, 2017 8:54 am
Forum: Investing - Theory, News & General
Topic: Difference between VG Growth and Income vs Equity Income Funds
Replies: 5
Views: 514

Re: Difference between VG Growth and Income vs Equity Income Funds

Never used them. Two observations. IMHO it was a strange appendix and I didn't like it or think I agreed with it, but in the second edition of their guide for novice investors, The Elements of Investing , Burton Malkiel and Charles Ellis ranted about "financial repression" and suggested a "bond surr...
by nisiprius
Fri Dec 15, 2017 7:32 am
Forum: Investing - Theory, News & General
Topic: How Will Indexers Affect A Downturn---or the functioning of the market in the long-run?
Replies: 29
Views: 2612

Re: How Will Indexers Affect A Downturn---or the functioning of the market in the long-run?

...Expecting things to go BOOM or BANG or BORK at some unknown point in the near future (within 5 to 10 years), and probably in a way that is most unlike all the other times things have gone BOOM or BANG or BORK... Yes, especially the last part. To riff on Tolstoy (never read the book, but only kno...
by nisiprius
Fri Dec 15, 2017 7:27 am
Forum: Personal Finance (Not Investing)
Topic: Wow. Just Wow.
Replies: 29
Views: 4795

Re: Wow. Just Wow.

I haven't had any encounters with Edward Jones, but a late elderly inlaw of mine lived in a town of 3,000. Their insurance agent was a really nice guy. When her husband died, he came to her house and helped her sort through papers and find the insurance policies and figure out which were in force. H...
by nisiprius
Thu Dec 14, 2017 9:54 pm
Forum: Investing - Theory, News & General
Topic: How Will Indexers Affect A Downturn---or the functioning of the market in the long-run?
Replies: 29
Views: 2612

Re: How Will Indexers Affect A Downturn---or the functioning of the market in the long-run?

You don't need a huge number of participants to perform price discovery; what you need is well-informed, analytical, and shrewd participants. In the year when I bought one share of Target so that I could give the framed stock certificate as a gift to my granddaughter, I was not being a mini-Warren-B...
by nisiprius
Thu Dec 14, 2017 6:36 pm
Forum: Investing - Help with Personal Investments
Topic: Ameriprise :(
Replies: 29
Views: 2794

Re: Ameriprise :(

...recently discovered the un-sellable REITs that have been losing $ since the day they cashed our check... An acquaintance dealing with an estate ran into this. He found that there are firms that specialize in, you guessed it, buying non-traded REITs. In his case, the advisor was no help to him in...
by nisiprius
Thu Dec 14, 2017 6:19 pm
Forum: Investing - Help with Personal Investments
Topic: For ETFs: Fidelity or Vanguard or others
Replies: 14
Views: 1301

Re: For ETFs: Fidelity or Vanguard or others

Bogleheads often choose to invest in broad funds and ETFs that encompass whole markets, or at least broad asset classes, and, for example, follow Larry Swedroe's rule: ("Rules of Prudent Investing, #17") #17: Owning individual stocks and sector funds is more akin to speculating, not investing. The m...
by nisiprius
Thu Dec 14, 2017 3:59 pm
Forum: Investing - Theory, News & General
Topic: How Will Indexers Affect A Downturn---or the functioning of the market in the long-run?
Replies: 29
Views: 2612

Re: How Will Indexers Affect A Downturn---or the functioning of the market in the long-run?

To state what should be obvious: indexing the total market at cap-weight is different from every other strategy because it is the only one that does not encounter obvious problems if almost everybody does it. For example, if almost everybody wanted 30% of their holdings to be small-cap value, you wo...
by nisiprius
Thu Dec 14, 2017 11:56 am
Forum: Investing - Theory, News & General
Topic: TLH: Would you treat these 4 international funds as virtually interchangeable
Replies: 6
Views: 606

Re: TLH:ould you treat these 4 international funds as virtually interchangeable

I think that for tax-loss harvesting, the appropriate question is, "if A is my preferred choice, and B, C, and D are my substitutes... during the length of time I plan to hold B, C, or D, how much difference is there likely to be between holding them and holding A?" Notice, by the way, that it's qui...
by nisiprius
Thu Dec 14, 2017 9:16 am
Forum: Investing - Theory, News & General
Topic: ESPP - Would you participate and what's your strategy
Replies: 24
Views: 1598

Re: ESPP - Would you participate and what's your strategy

When I was in that situation, I feared that my supervisor might know whether or not I was participating and consider it an indicator of my motivation and enthusiasm. So, just as I contributed to the United Way, I participated in the ESPP to the minimum extent possible: $5 a month. I didn't attempt t...
by nisiprius
Wed Dec 13, 2017 9:32 pm
Forum: Personal Consumer Issues
Topic: Virtual Mailbox / Mail Scan Service
Replies: 12
Views: 959

Re: Virtual Mailbox / Mail Scan Service

NOT CALIFORNIA... but I have used a Florida firm, St. Brendan's Isle Mail Services, https://www.sbimailservice.com , to receive my mail when we were on a long road trip, and they've been just fine. I've used their Mail Scan Pro add-on; you view an image of the envelope on their website, and then you...
by nisiprius
Wed Dec 13, 2017 4:33 pm
Forum: Personal Finance (Not Investing)
Topic: Putting a stop payment on credit card for broken TV
Replies: 11
Views: 671

Re: Putting a stop payment on credit card for broken TV

P.S. You can't "put a stop payment" on a credit card. You "stop payment" on a check. With a credit card, as I think you know now, you "file a dispute" with the credit card number, and usually the card company gives you a "chargeback," pending "investigation." With my credit card, I can look at the a...
by nisiprius
Wed Dec 13, 2017 4:21 pm
Forum: Personal Finance (Not Investing)
Topic: Putting a stop payment on credit card for broken TV
Replies: 11
Views: 671

Re: Putting a stop payment on credit card for broken TV

So I called up the company and they said I can cancel and they will return the money when they pick up the TV and they will not charge me the shipping fee either so zero loss to me. In case I don't get the money back even after returning the shipment I can file a credit card dispute and get the mon...
by nisiprius
Wed Dec 13, 2017 4:14 pm
Forum: Personal Finance (Not Investing)
Topic: Putting a stop payment on credit card for broken TV
Replies: 11
Views: 671

Re: Putting a stop payment on credit card for broken TV

Did they give you a tracking number for the shipment for the replacement TV? That's an important detail. Do they expect you to return the defective TV to them? Did they give you an "RMA number" to use and an address to send it to? The problem in a situation like this is that a vendor will keep strin...
by nisiprius
Wed Dec 13, 2017 3:44 pm
Forum: Investing - Theory, News & General
Topic: Why not own every stock sector & rebalance?
Replies: 30
Views: 3146

Re: Why not own every stock sector & rebalance?

A side note. I don't know what Roger Gibson says in his book about a "rebalancing dividend." This is a frequently debated topic here in the forum. I am just going to state the two sides of the debate. I won't go into depth. I believe #2 below. 1) Some people seem to believe that rebalancing can actu...
by nisiprius
Wed Dec 13, 2017 11:45 am
Forum: Investing - Help with Personal Investments
Topic: What's the case for including foreign developed & emerging markets with a 10-12 year outlook on retirement
Replies: 60
Views: 2778

Re: What's the case for including foreign developed & emerging markets with a 10-12 year outlook on retirement

...International isn't about avoiding stock downturns, it's about avoiding being on the wrong end of a dispersion spectrum... I'm not sure I understand it well, but my interpretation of Ditchwitch's original post is that avoiding stock downturns is one of the things he wants. If you agree with me t...
by nisiprius
Wed Dec 13, 2017 11:18 am
Forum: Investing - Theory, News & General
Topic: Vanguard will use blockchain to share index data
Replies: 29
Views: 2813

Re: Vanguard will use blockchain to share index data

...I understand that. But my question is if bitcoin is an implementation of blockchain, but you can create as many implementations of the block chain as you want, why would bitcoin have value... That's in fact a problem, and it's why you have Bitcoin, Litecoin, Swiftcoin, Namecoin, Peercoin, Dogeco...
by nisiprius
Wed Dec 13, 2017 7:05 am
Forum: Investing - Theory, News & General
Topic: Vanguard will use blockchain to share index data
Replies: 29
Views: 2813

Re: Vanguard will use blockchain to share index data

1) That's very interesting. I think. 2) I have no idea what it means. Can anyone explain to me why it is difficult to "move index data" in some other way... for example, simply posting a number on a website in an easily-machine-readable form? What's being shared here? What information is moving from...
by nisiprius
Tue Dec 12, 2017 9:09 pm
Forum: Investing - Help with Personal Investments
Topic: What's the case for including foreign developed & emerging markets with a 10-12 year outlook on retirement
Replies: 60
Views: 2778

Re: What's the case for including foreign developed & emerging markets with a 10-12 year outlook on retirement

...When I did this analysis, I saw that OAKIX is a mutual fund that's not too correlated with the S&P and gives good returns. There are other funds too. Basically what you're getting here is slight mitigation of any US equity collapse, but only a slight mitigation... Since you said S&P 500, let's c...
by nisiprius
Tue Dec 12, 2017 6:52 pm
Forum: Investing - Theory, News & General
Topic: Does any indicator not predict a 2000/2007'ish crash?
Replies: 47
Views: 2525

Re: Does any indicator not predict a 2000/2007'ish crash?

I have no idea whether there will be a 2000 or 2007-ish crash. I do think people are overlooking the fact that whereas the 1995-2000 bull market was riding on top of a growing stock market--it was a speed-up of a stock market that was already growing--the 2009-2017 bull market started out deep in a ...
by nisiprius
Tue Dec 12, 2017 4:53 pm
Forum: Investing - Theory, News & General
Topic: Vanguard: Brokerage account vs. "old style" ?
Replies: 2
Views: 420

Re: Vanguard: Brokerage account vs. "old style" ?

No. Mutual funds, that is the actual funds, are not insured by SIPC any more than individual stocks are. Mutual funds have whatever intrinsic risks they have. Due to the protections of the Investment Company Act of 1940 I think they have great deal of protection against fraud or neglect in handling ...
by nisiprius
Tue Dec 12, 2017 4:37 pm
Forum: Investing - Help with Personal Investments
Topic: What's the case for including foreign developed & emerging markets with a 10-12 year outlook on retirement
Replies: 60
Views: 2778

Re: What's the case for including foreign developed & emerging markets with a 10-12 year outlook on retirement

...Isn't the idea, that if foreign markets move quite differently than the US it does have an impact on how much or even in which direction the overall needle moves?... "Quite differently?" I'd ask, "well, what happened the last time the market crashed?" Blue, United States. Orange, developed marke...
by nisiprius
Tue Dec 12, 2017 7:50 am
Forum: Investing - Theory, News & General
Topic: Roger Ibbotson and ZebraEdge Annuity
Replies: 5
Views: 731

Re: Roger Ibbotson and ZebraEdge Annuity

Are there any professors of finance that remain independent of commercial interests and don't try to monetize their reputation through association with companies that sell financial products?
by nisiprius
Tue Dec 12, 2017 7:48 am
Forum: Personal Consumer Issues
Topic: Scary episode with "intruder" in the home ... Google Home
Replies: 15
Views: 3906

Re: Scary episode with "intruder" in the home ... Google Home

Valuethinker wrote:
Tue Dec 12, 2017 7:24 am
...You forgot that your car takes over from you when you are braking or if manoeuvring violently...
Indeed. And it is an interesting question how my car prioritizes protecting my life versus protecting the lives of others.
by nisiprius
Tue Dec 12, 2017 7:14 am
Forum: Investing - Help with Personal Investments
Topic: What's the case for including foreign developed & emerging markets with a 10-12 year outlook on retirement
Replies: 60
Views: 2778

Re: What's the case for including foreign developed & emerging markets with a 10-12 year outlook on retirement

My opinion is that the "case" against international stocks boils down to nothing more than "why?" and that the "case" for them boils down to nothing more than "why not?" Stocks are stocks. I see no reason to think international stocks are hugely different from U.S. stocks. There has been internation...
by nisiprius
Tue Dec 12, 2017 6:26 am
Forum: Personal Consumer Issues
Topic: Scary episode with "intruder" in the home ... Google Home
Replies: 15
Views: 3906

Re: Scary episode with "intruder" in the home ... Google Home

We are further down the road toward bad 1950s SF about robot domination than I expected to see in my lifetime. It's not obvious because so many of the things that are happening are "merely" strong nudges, not total compulsion, and because the weird artificial not-quite-intelligence of Google, Siri, ...
by nisiprius
Mon Dec 11, 2017 10:46 pm
Forum: Investing - Help with Personal Investments
Topic: So bought Litecoin@ $150...
Replies: 14
Views: 2649

Re: So bought Litecoin@ $150...

What the heck. So put in 1K for fun.. I don't know what is going to happen but it hit 270 today and seems to be goin crazy.. Well the most I will lose is 1k. This is only true if you have a rule that if you lose the 1K you will give up on cryptocurrency and never try it again--and you actually stic...
by nisiprius
Mon Dec 11, 2017 1:29 pm
Forum: Investing - Help with Personal Investments
Topic: No transaction fee for Vanguard ETFs?
Replies: 21
Views: 1328

Re: No transaction fee for Vanguard ETFs?

The takeaway is to take opportunities when they appear and to buy ETFs when there is a flash crash. :twisted: So I think the chart posted by nisiprius is a very strong reason to use ETFs. Is there a known example of someone actually managing to buy VTI, or indeed any heavily affected ETF, during th...
by nisiprius
Mon Dec 11, 2017 11:58 am
Forum: Investing - Help with Personal Investments
Topic: No transaction fee for Vanguard ETFs?
Replies: 21
Views: 1328

Re: No transaction fee for Vanguard ETFs?

Fidelity sells many ETFs for zero commission, about anything anyone could want. You can buy or sell the shares for free (as long as you are not doing frequent short term trades in and out of the same ETF). Schwab also does the same. No-commission trades (within various over-trading limits) are now ...
by nisiprius
Mon Dec 11, 2017 11:45 am
Forum: Investing - Help with Personal Investments
Topic: No transaction fee for Vanguard ETFs?
Replies: 21
Views: 1328

Re: No transaction fee for Vanguard ETFs?

Hello, I was looking at the brokerage fees at Vanguard and it looks like you can get Vanguard ETFs without any commission. That sounds too good to be true. Why would anyone use investor class mutual funds when they can get the ETF with a lower expense ratio and no transaction fee? In addition, ETFs...
by nisiprius
Mon Dec 11, 2017 9:39 am
Forum: Investing - Theory, News & General
Topic: Any of you trade just a little as a hobby?
Replies: 64
Views: 5529

Re: Any of you trade just a little as a hobby?

I've bought individual stocks about fifteen times in my life, from ages twenty to sixty. I would not call it "trading" and I would not call it a hobby. I would call it small mistakes and learning experiences. I'm slightly in the black over my lifetime. The last time I bought an individual stock was ...
by nisiprius
Mon Dec 11, 2017 9:30 am
Forum: Investing - Help with Personal Investments
Topic: When to invest in a bull market
Replies: 17
Views: 2084

Re: When to invest in a bull market

Hello - I'd like to invest $100,000 in the S&P 500 Index mutual fund... My investment horizon is approximately 7 years ... Take some time to cruise through Vanguard's web pages describing the Vanguard 500 Index fund. Come back with questions about what you read. Among other things you will see this...