Document 6573384
Transcription
Document 6573384
D4 Business | 2R | SUNDAY, OCTOBER 26, 2014 MutualFunds WHEN A FUND MANAGER ‘HAS LOST IT’ Fund Tracker explain, because only a privileged few ever saw it. While it sounds odd, it Chuck Jaffe might also be chalked up to Syndicated columnist a guy struggling to stay On the relevant in the company he recent jour started, as that business ney from transitions away from him. Pimco to No matter, there are Janus, Bill plenty of fund managers Gross known — at least inside changed in their own shops — for bi the eyes of zarre, eccentric or manic many investors from indus behavior. try giant to crackpot. All that matters to inves Stories emerged about tors is if that affects the Gross’ erratic behavior, fund’s results. suggesting he left in a rage There, determining if a of spite and discord, hitting manager has “lost it” may the exits before Pimco could be a matter of perspective. boot him. Critics had sever For a guy like Luke — a al years of middling perfor longterm holder in Pimco mance to use as proof that Total Return — recent re Gross’ touch no longer was sults haven’t diminished the magic. overall excellence produced The truth lies somewhere during his time holding the between the extreme edges fund. of the story, and is shad Indeed, among famous owed by the perceptions managers rumored to have and experiences of the “lost it” as they neared the viewer, but the whole tale end of their career, there’s a raises an interesting ques mix between guys who tion, one voiced most clear simply couldn’t maintain ly to me by Luke in Allen, their longterm run at the Texas, who asked “How can very top of the pack and you tell if a manager has lost guys who fell and could not it?” get up. Luke has invested with John Neff of Vanguard Bill Gross’ flagship Pimco Windsor (VWNDX) had Total Return fund for more detractors at the end of his than 15 years, and while stellar career, but it’s hard slipping returns made him to suggest investors have a concerned, it was only after real beef. the news broke that he When Neff retired from started to think he missed Windsor in 1995, he was something obvious and had the top performer in his hurt his portfolio by sticking category over the last 30 around. years of his career, and was Whether Gross is washed top 10 percent in the last up is an open question. decade, despite finishing Plenty of experts have belowaverage in the last said since Gross announced yearplus as his clock was his plans that if they were winding down. looking for an uncon By comparison, Marty strained bond fund, they’d Whitman of Third Avenue go with Janus Uncon Value (TAVFX) was no strained (JUCAX) — Gross’ better than an average new fund — just because it performer for the last de will be small and nimble cade of his career (ending in and he will be focused on 2012), but still ranked atop earning atonement in the the category for the length eyes of investors. of his career, suggesting As for whether investors that the first dozen years at should have recognized the the fund were so extraordi issues brewing before his nary that they overcame change, that would have reversion to the mean. been hard because every And then there’s Bill Mill thing but the fund’s perfor er, who made his reputation mance happened either out running Legg Mason Value of the public eye or without Trust (LMVTX, now Clear appropriate context. Bridge Value Trust) ahead Gross was the personifi of the Standard & Poor’s cation of Pimco, the compa 500 for about a dozen ny that he founded in 1971 straight calendar years. and grew into a $2 trillion Over the last five and megalith. 10year periods in his ca In his time running Pimco reer, ending in 2012, how Total Return (PTTRX) — ever, Lipper had him dead which dates to May of 1987 last and nexttolast in his — the fund averaged 7.85 peer group. percent annualized gains, The last half of his 30 roughly 20 percent better years running the fund was than the average peer fund so bad that he barely fin over the same time. ished in the top 25 percent He’s at or near the top of of his peer group for the both his Morningstar and entire career. Lipper peer groups for any A legendary manager is time period that covers the only worth the reputation if last decade or more. you get the fabled results. The last few years haven’t Buying at the peak and been quite so kind, with riding the downslope will Gross ranking in the bottom convince anyone that a quartile of his Morningstar manager has lost it. peer group for the last 12 In short, managers who months. burn through shareholder That kind of “reversion to patience have “lost it,” no the mean” — fundspeak for matter what they do next. a mediocrity balancing out “Good managers sudden a stretch of outperformance ly trailing their benchmark — isn’t surprising; it hap and peer group — or becom pens to every great manager ing visibly middling for a somewhere in a long ten few quarters — raises ques ure. tions,” said Jim Lowell, What had people ques chief investment officer at tioning Gross’ ability was Adviser Investments, which the back story. There was takes a “buy the manager, his weird, disjointed speech not the fund” approach to at the Morningstar Investor picking funds. Conference in June, which “Anything like erratic seemingly shocked much of personal or professional the audience. behavior would also raise That was only disquieting questions, as would compa to anyone who had never ny management or manag seen Gross on stage before, er team shakeups. ... Weak as the man has never been a ness relative to past perfor good public speaker. mance concerns us,” Lowell He invariably draws a said. crowd and makes some “Gross — like (Mario) headlines, but weird and Gabelli and (Warren) Buf disjointed could apply to fett — has a reputation that virtually every speech the outshines the track records, guy has given in the last two but Gross has a chance at decades (and I have sat resurrection,” Lowell add through at least eight of ed. “He’ll want to prove all them); his Morningstar talk his critics wrong, and he may have set new standards may do just that.” for erratic Gross behavior, Chuck Jaffe is senior columnist for but it didn’t surprise anyone MarketWatch. He can be reached at [email protected] or at who had seen him before. P.O. Box 70, Infighting and curious Cohasset, MA 020250070. office behavior is tougher to Copyright 2014, MarketWatch Winners and losers: A mutualfund scorecard Your Funds Weekly spotlight on mutual fund performance Fund Wkly % YTD % obj return return Biggest funds American Funds A AmcpA p American Funds A AMutlA p American Funds A BalA p American Funds A BondA p American Funds A CapIBA p American Funds A CapWGA p American Funds A FdInvA p American Funds A GwthA p American Funds A HI TrA p American Funds A IncoA p American Funds A ICAA p American Funds A N PerA p American Funds A SmCpA p American Funds A WshA p BlackRock Instl StrIncoOpp BlackRock Instl EquityDv BlackRock Instl GlbAlloc r Dimensional Fds EmMCrEq Dimensional Fds EmMktV Dimensional Fds USLgVa Dodge&Cox Balanced Dodge&Cox Income Dodge&Cox IntlStk Dodge&Cox Stock DoubleLine Funds TRBd I FPA Funds FPACres Fidelity Freedom FF2020K Fidelity Freedom FF2030K Fidelity Invest Balanc Fidelity Invest Contra Fidelity Invest GroCo Fidelity Invest LowP r Fidelity Invest Puritn Fidelity Invest TotalBd Fidelity Spart Adv 500IdxAdv Fidelity Spart Adv TotMktAd r Frank/Temp Frnk A IncomA p Frank/Tmp Frnk Adv GlbBdAdv Harbor Funds CapApInst Harbor Funds Intl r Loomis Sayles LSBondI x Metro West Fds TotRtBdI Oakmark Funds I EqtyInc r Oakmark Funds I Intl Oakmark Funds I Oakmark Oppenheimer Y DevMktY PIMCO Instl PIMS AlAsetAut r PIMCO Instl PIMS AllAsset PIMCO Instl PIMS TotRt PIMCO Funds Instl Income Price Funds BlChip Price Funds CapApp Price Funds EqInc Price Funds EqIndex Price Funds Growth Price Funds MidCap Price Funds N Horiz Price Funds N Inc Price Funds Ret2020 Price Funds Ret2030 Price Funds Value Schwab Funds S&P Sel Vanguard Admiral 500Adml Vanguard Admiral GNMA Ad Vanguard Admiral HlthCr Vanguard Admiral ITAdml Vanguard Admiral ITGrAdm Vanguard Admiral LtdTrAd Vanguard Admiral MCpAdml Vanguard Admiral PrmCap r Vanguard Admiral STIGrAd Vanguard Admiral SmCAdm Vanguard Admiral TtlBAdml Vanguard Admiral WellslAdm Vanguard Admiral WelltnAdm Vanguard Admiral WdsrIIAd Vanguard Fds TotIntBInv Vanguard Fds DivdGro Vanguard Fds STAR Vanguard Fds TgtRe2015 Vanguard Fds TgRe2020 Vanguard Fds TgtRe2025 Vanguard Fds TgRe2030 Vanguard Fds TgtRe2035 Vanguard Fds TgtRe2040 Vanguard Fds TgtRe2045 Vanguard Idx Fds TotlIntl XC LV BL IB BL GL LC LG HC BL LC GL GL LC GT EI MP EM EM LV BL IB IL LV MT MP MP MP BL LG XG MC BL IB SP XC BL WB LG IL GT IB BL IL LC EM MP MP IB GT LG BL EI SP LG MG SG IB MP MP LV SP SP MT HB IM IB SM MC LC SB SC IB BL BL LV WB EI BL MP MP MP MP MP MP MP IL XC SP XC Vanguard Idx Fds TotStk Vanguard Instl Fds InstIdx Vanguard Instl Fds InsTStPlus 5yr % return +4.5 +8.1 +15.3 +4.4 +7.2 +13.7 +2.5 +5.2 +12.0 0.2 +5.2 +4.7 +2.5 +5.2 +9.0 +3.4 +3.0 +9.1 +3.8 +4.4 +13.2 +4.4 +5.5 +13.5 +1.0 +2.7 +8.8 +2.8 +6.1 +11.4 +4.3 +9.1 +13.7 +3.6 0.0 +10.4 +3.1 1.8 +11.3 +3.7 +6.4 +15.0 +0.2 +3.0 +6.2 +3.8 +4.2 +12.6 +2.0 +0.8 +6.7 +0.7 +2.0 +4.0 +0.8 +0.4 +1.6 +4.2 +5.3 +16.5 +2.9 +5.5 +12.7 0.1 +5.4 +5.4 +2.6 +1.5 +8.1 +4.4 +5.4 +15.2 NA NA NS +1.8 +3.3 +10.4 +2.2 +3.4 +8.4 +3.1 +3.1 +9.4 +2.9 +6.8 +11.5 +4.2 +5.3 +14.8 +5.2 +8.0 +17.8 +3.2 +3.4 +15.4 +3.1 +7.2 +11.6 0.1 +5.4 +5.6 +4.1 +8.0 +15.1 +4.1 +6.7 +15.3 +2.1 +5.4 +10.6 +0.5 +3.4 +6.6 +4.7 +6.2 +14.8 +1.8 6.1 +6.0 +0.6 +5.3 +9.2 0.2 +5.3 +7.2 +2.5 +3.1 +9.6 +1.6 8.5 +9.3 +3.6 +6.1 +16.2 +0.6 +0.7 +7.8 NA NA NA NA NA NA 0.1 +4.1 +5.2 +0.2 +7.9 +12.6 +5.0 +5.0 +16.7 +2.9 +8.0 +13.0 +3.5 +3.1 +13.0 +4.1 +7.8 +14.8 +4.8 +4.8 +16.1 +4.3 +5.8 +16.6 +3.8 0.2 +21.0 0.2 +5.4 +4.6 +2.4 +3.9 +10.4 +2.9 +3.7 +11.6 +4.7 +7.0 +15.4 +4.1 +7.9 +15.0 +4.1 +8.0 +15.1 0.0 +6.1 +4.3 +5.6 +21.7 +20.5 0.6 +6.8 +4.8 0.1 +5.8 +6.6 0.2 +2.0 +2.3 +4.6 +7.3 +16.7 +5.1 +12.1 +16.5 0.1 +2.1 +3.2 +3.8 +1.3 +16.4 0.2 +5.3 +4.3 +1.1 +6.0 +9.6 +2.3 +6.4 +11.2 +3.9 +6.2 +13.9 0.1 +6.5 NS +3.4 +6.1 +14.5 +2.3 +4.7 +10.0 +1.7 +4.5 +9.0 +2.1 +4.6 +9.6 +2.4 +4.5 +10.2 +2.6 +4.3 +10.7 +2.9 +4.2 +11.3 +3.2 +4.0 +11.5 +3.2 +4.1 +11.5 +2.2 2.7 +4.7 Best performers ProFunds Inv Cl UltShNq100 Rydex Dynamic InvNasdSt H Direxion Fds LatAmBull ProFunds Inv Cl UltBear Rydex Dynamic InvSP5St H ProFunds Inv Cl UltLatinAm BlackRock A LatAA r Deutsche Trust LatAmrEq Price Funds LatAm Fidelity Invest LatAm Comstock Partners CapVlA ProFunds Inv Cl Bear Rydex Investor InvS&P5St Leuthold Funds GrizzlyShrt Federated A PrudBear p US Global Investors WldPrcMn GAMCO Funds MathrAAA Invesco Funds A GoldPrec p ProFunds Inv Cl UltEmMkt Invest Managers EuroPGld A Tocqueville Fds Gold t Voya Funds Cl A RussiaA p Aegis Funds HighYield Amer Century Inv GlGold Hussman Funds StrGrowth Fidelity Selects Gold r Oppenheimer A Gold p Vanguard Instl Fds ExDurTreas Wasatch USTryFd Midas Funds Midas Fd t +6.7 +15.2 +8.0 +15.1 +6.9 +15.4 Fund Wkly % YTD % obj return return 5yr % return SQ +16.1 +42.4 +43.8 SQ +12.1 +24.6 +35.4 SQ +12.1 +24.3 +35.2 HB +8.8 +25.1 +31.3 HB +8.7 +25.5 +29.2 SQ +8.4 +4.1 +26.7 HB +8.4 +25.0 +31.8 SQ +8.4 +12.9 +25.1 SQ +8.4 +13.2 +25.5 HB +7.9 +22.8 +29.0 HB +7.9 +26.6 +28.6 SQ +7.7 16.2 +7.8 HB +7.2 +16.0 +17.1 SE +7.1 7.9 +3.9 SQ +6.8 9.2 +23.0 HB +6.8 +24.7 +26.0 HB +6.8 +24.3 +25.4 HB +6.7 +21.3 +20.4 HB +6.7 +21.2 +19.4 SE +6.6 +19.6 +24.2 SQ +6.6 4.6 +26.8 TK +6.5 +20.3 +15.5 HB +6.5 +17.1 +20.7 TK +6.5 +20.5 +16.0 HB +6.4 +20.3 +20.1 HB +6.4 +19.5 +20.9 SQ +6.3 +3.2 +20.9 HB +6.3 +21.9 +19.8 HB +6.3 +22.7 +27.9 XG +6.2 +7.1 +17.1 ProFunds Inv Cl BiotechUlt Rydex Dynamic NasdStrH ProFunds Inv Cl UltNasd100 Fidelity Advisor A Biotech A Frank/Temp Frnk A BioDisA p ProFunds Inv Cl UltMidCap Fidelity Selects Biotch ProFunds Inv Cl UltBull Rydex Dynamic S&P5 2xH p Prudential Fds A HlthSciA Rydex Investor Biotech ProFunds Inv Cl UltraJapan Fidelity Selects MdEqSys Direxion Fds NatRBull2X ProFunds Inv Cl UltSmCap Fidelity Selects Health Fidelity Adv Foc A HlthCrA r BlackRock A HltScOp Allianz Funds D GlblWell Fidelity Selects Trans ProFunds Inv Cl InternetUlt Fidelity Advisor I Electronic Schwab Funds HlthCare Fidelity Selects Electr ICON Fds Hlthcare S Deutsche Trust HlthCare r Rydex H Class MCapStrH Eaton Vance A HlthSA p Price Funds HlthSci Fidelity Invest CapAp Worst performers +4.1 +4.1 +4.1 Fund Wkly % YTD % obj return return SQ SQ SQ SQ SQ SQ LT LT LT LT SQ SQ SQ SQ SQ AU SQ AU SQ AU AU EM HC AU SQ AU AU LU LU AU 11.3 11.3 8.9 8.1 8.1 6.2 5.2 5.0 5.0 4.4 4.4 4.1 4.0 4.0 3.6 2.5 2.4 2.1 2.1 2.0 1.9 1.9 1.8 1.8 1.8 1.8 1.8 1.7 1.7 1.7 5yr % return 27.2 37.3 26.8 37.1 14.3 14.1 17.9 31.9 17.8 31.4 17.4 14.2 2.7 2.9 4.3 2.2 4.1 3.8 6.3 3.7 11.2 18.4 9.3 16.7 9.1 16.3 7.2 17.3 9.8 16.0 4.2 15.0 3.3 6.7 +2.2 9.4 +6.1 6.4 2.8 NS +7.4 6.7 24.1 3.8 5.5 +5.3 1.0 12.1 5.4 5.5 +2.2 13.2 7.1 11.6 +32.7 +11.5 +23.4 +9.3 15.2 19.5 Footnotes: e: Ex capitalgains distribution. f: Previous day{rsquo}s quote. n or nl: No upfront sales charge. p: Fund assets are used to pay for distribution costs. r: redemption fee or contingent deferred sales load may apply. s: Stock dividend or split. t: Both p and r. x: Ex cash dividend. NE: Data in question. NS: Fund did not exist at the start date. NA: No information available. Key to abbreviations and footnotes: Fund objectives: AB: Longterm topgrade corporate and govern ment bonds. AU: Gold oriented. BL: Balanced. EI: Equity income. EM: Emerging markets. EU: European region. GL: Global (includes U.S.). GM: General municipal bond. GT: General taxable bond. HB: Health and biotech. HC: Highyield taxable bond. HM: Highyield municipal bond. IB: Intermediateterm investmentgrade corporate bond. IG: Intermediateterm Treasury/government debt. IL: International (outside U.S.). IM: Intermediateterm municipal bond. LC: Largecap core. LG: Largecap growth. LT: Latin American. LU: Longterm Treasury/government debt. LV: Largecap value. MC: Midcap core. MG: Midcap growth. MP: Mixed portfolio (stocks and bonds). MT: Mortgage. MV: Midcap value. NM: Insured municipal bond. NR: Natural resources. PR: Pacific region. SB: Shortterm investmentgrade corporate bond. SC: Smallcap core. SE: Sector (specific industries). SG: Smallcap growth. SM: Shortterm munici pal debt. SP: S&P 500. SQ: Specialty diversified equity. SS: Single state municipal debt. SU: Shortterm Treasury/government debt. SV: Smallcap value. TK: Science and technology. UN: Unclassified. UT: Utility. WB: World bond. XC: Multicap core. XG: Multicap growth. XV: Multicap value 5year % return: Annualized performance over the past five years. Top 5 mutual funds by objective, yeartodate % return YTD % return Midcap core YTD % return InstAXfd r +15.9 AME Fd +15.3 EmMktI +7.7 EmgMkts I +6.8 EmMktSC p +6.3 Stewart Capital Longleaf Partners Dreyfus Columbia Class Z JPMorgan Sel Cls Mid Cap +10.7 SmCap +8.5 ActMidA +8.2 MdCpVlZ p +8.0 IntpdMCp +7.5 Emerging markets Price Funds Price Funds Virtus Funds I Westwood Funds Templeton Adv Equity income Paydenfunds Invesco Funds A Federated Instl Touchstone Family Neubrgr&Berm Fds ValLdrs Utilities p StrValDvIS PrYldEq Y EqIncInst Health | biotech Rydex Investor Frank/Temp Frnk A Fidelity Advisor A Fidelity Selects Fidelity Selects Biotech BioDisA p Biotech A Biotch Health Global GblInfra I GblLstInf Y GblInfra I GlbInfraA p GlblInno Lazard Instl Brookfield Fds Cohen & Steers Virtus Funds A Guinness Atkinson International Wasatch Fidelity Invest Guggenheim Fds Allianz Fds Instl Virtus Funds I IntlOppt r Canada WldEqIncA IntlMgdVol ForOppI Largecap core Vanguard Admiral Vanguard Fds Sterling Capital BMO Funds Vanguard Instl Fds YTD % return Smallcap core +11.5 +10.2 +10.1 +10.0 +8.7 Invesco Funds A Lazard Instl Hennessy Funds Vanguard Fds JPMorgan Sel Cls YTD % return Natural resources +26.6 +25.5 +25.1 +25.0 +24.7 Invest Managers Invest Managers Oppenheimer A Oppenheimer Y Oppenheimer Y YTD % return Pacific region +13.0 +11.0 +10.9 +9.0 +8.1 Matthews Asian Frank/TempFrnkA Eaton Vance A EuroPac Funds Price Funds YTD % return Science | technology +5.9 +4.3 +4.2 +2.4 +1.9 YTD % return PrmCap r +12.1 PrmcpCor +11.7 LgCValDv I +9.9 LowVolEq I +9.9 StlCPlus +9.8 Fidelity Selects Fidelity Advisor I Price Funds Columbia Class A Columbia Class A YTD % return SmallC p USSmMid I CorGrow O StrSCEqInv MExpEnhI MLP&Engy MLP&EnI I StlpthAlpha Alpha Y Sel40 Y IndiaInv r IndiaGrA p GrIndia t AsiaSmCoA N Asia Electr Electronic GlbTech SelComm A GlobTech Gold oriented GAMCO Funds Tocqueville Fds First Eagle OCM Funds Wells Fargo Adv A GoldAAA Gold t SGenGld p GoldInv t PrecMtlA +6.4 +4.8 +4.5 +3.2 +2.9 YTD % return Sector Trans Fidelity Selects ReavSelct Fidelity Selects Fidelity Selects Fidelity Selects Air ConStap CstHo YTD % return Balanced Wells Fargo Adv A Wells Fargo Adv A Price Funds Pioneer Funds A USAA Group IdxAstAll A +11.5 DivCapBldr +9.3 CapApp +8.0 ClassBalA +7.6 GrTxStr +7.5 YTD % return Intermediate bond +17.8 +17.3 +16.8 +13.3 +12.3 Invest Managers Dimensional Fds BMO Funds MorganStanleyInst Guggenheim Fds YTD % return Longterm bond +54.5 +37.3 +35.6 +9.4 +8.1 Vanguard Idx Fds Vanguard Admiral GuideStone Funds Del Inv Instl PIMCO Instl PIMS YTD % return Longterm U.S. +20.5 +20.3 +19.2 +13.6 +12.2 Vanguard InstlFds Wasatch Vanguard Admiral Fidelity Spartan Dreyfus YTD % return Mortgage +8.0 +7.4 +4.1 +3.2 +2.8 Managed Acct Srs Vanguard Admiral SEI Portfolios Deutsche Trust Legg Mason A +19.6 +11.1 +11.0 +8.9 +8.3 CutwSelInc ITExQual CorpInco I CorPlsFxI USIntrBdA LTBnd LTGrAdml ExtDrGS4 ExtDurI InvGrCp ExDurTreas USTryFd LTsyAdml SpLTTrAd r UST Lng YTD % return +8.1 +7.9 +7.5 +7.3 +7.1 YTD % return +16.2 +14.8 +14.6 +14.4 +8.4 YTD % return +32.7 +23.4 +19.0 +19.0 +17.8 YTD % return US MrtgInst GNMA Ad GNMA A GNMA S WAMtgBkA +6.9 +6.1 +6.0 +5.9 +5.8 LOWEST COSTS, MOST ASSETS MAKE THE BEST FUNDS Investing Scott Burns Syndicated columnist Q: I enjoy your columns on lowcost investing. Do you have any sugges tions about major domestic stockin dex funds and major do mestic bondindex funds? Maybe names of several that you might know to be wellmanaged. — B.M., Seattle A: Nothing succeeds like success. According to the Morningstar database, there are now 291 ways you can buy an index fund that specializes in large cap domestic stocks. Often the same fund is distributed through chan nels with different costs. The way to get the best fund is to look for the ones with the most assets and the lowest costs. Over the last 10 years, for instance, every one of the largest 15 of these funds beat the average of the 291 funds in the cate gory. So big is good, just as cheap is good. What you don’t need are index funds in the same category that don’t have much in assets and that have high expense ratios. Believe it or not, 30 of the 291 funds have ex pense ratios of at least 1.30 percent! That’s higher than the average managed fund. Most have less than $50 million in assets under management. The big, triedandtrue funds are: SPDR S&P 500 ETF (ticker: SPY), Van guard 500 Index Admiral shares (ticker: VFIAX), iShares Core S&P 500 ETF (ticker: IVV) and Fidelity Spartan 500 Index (ticker: FUSEX). In the same group, the Vanguard Total Stock Market Index Admiral shares (ticker: VTI) covers the entire domestic stock market — large, midcap and smallcap — at a cost of only 0.05 percent a year. The same principles apply in fixedincome funds, but there are far fewer of them. If we limit selection to intermediateterm govern ment bond funds, the largest, most liquid and most inexpensive are: iShares 37 Year Treasury Bond fund (ticker: IEI), Fidelity Spartan Interme diate Treasury Index fund (FIBIX), Schwab Interme diate Term U.S. Treasury ETF (ticker: SCHR) and Vanguard Intermediate Term Government Bond Index (ticker: VGIT). Costs are a bit higher here, run ning from about 0.10 per cent to 0.20 percent a year. In both these largecap and fixedincome catego ries, the larger the fund, the greater the probability that it will track its index accurately. Q: I am married, and both my husband and I are retired. I feel I should be learning the basics of in vesting. I have gone to presentations on the sub ject. And I’ve read your column. But sometimes I don’t even understand some of the terminology being used. Can you suggest a book or books or the best way I might gain a basic under standing of investing? T.A., Austin, Texas A: For an easy and right tothepoint start, pick up any of the books in Dan Solin’s “Smartest Book” series. After getting com fortable with Solin, get your knowledge reinforced by William Bernstein’s “The Investor’s Manifesto: Preparing for Prosperity, Armageddon, and Every thing in Between.” Questions: [email protected] Copyright 2014, Universal Press Syndicate