A personal finance blog dedicated discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance.


Wednesday, June 15, 2005

Smart Money's Midyear Investment Guide

I got the July issue of Smart Money the other day. It is their Midyear Investment Guide issue. I think of all the personal finance magazines, Smart Money is the best. They have some of the best writers in the business: James B. Stewart, Paul Sturm, Eric Savitz, and Roger Lowenstein. I make sure I read all of those columns each month. You never know what kind of interesting tidbits you will read in Smart Money. For instance, in an article titled "The Sweet Spot," I found a nice explanation of the difference between growth and value mutual fund managers:

"Growth managers typically seek out companies whose earnings are increasing at a faster rate than the market as a whole, and are therefore worth the higher price they usually command. Value managers tend to look for dependable businesses that are, well, undervalued according to fundamental measures, such as low price/earnings ratio. Many simply let index creators such as the Russell Investment Group determinde which stock fall into each category, and then they pick stocks from that group."

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