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  • White Papers // Oct 2008

    Five Myths Of Exchange-Traded Funds

    By now, you probably know a thing or two about Exchange-Traded Funds, better known as ETFs. You know that ETFs are basically index mutual funds that trade like stocks. You know that they have low expenses and are easy to trade. You know that they are a cheap, easy, tax-efficient...

    Provided By Charles Schwab

  • White Papers // Feb 2009

    ETFs: A Cautionary Tale

    Although 2008 was a miserable year for the financial markets, investors continued to believe in Exchange-Traded Funds (ETFs). Despite market turmoil, ETFs are clearly on the rise. However, not even the growing ETF market was immune to difficulties in 2008. Investors learned that, although many ETFs typically are tax-efficient funds...

    Provided By Charles Schwab

  • White Papers // Oct 2008

    Putting The Recession And The Stock Market In Historical Context

    Most stock market observers are aware of the sentiment effect - peak levels of optimism are often followed by corrections and vice versa. Much is the same with economic cycles: The economy typically falls into recessions not because of random shocks or crises, but because extreme optimism and euphoria is...

    Provided By Charles Schwab

  • White Papers // Dec 2008

    Are California State Muni Bonds Secure?

    Currently, California's General Obligation Unlimited Tax (GO/UTX) bonds carry an A+ bond rating from Standard & Poor's, A1 from Moody's and A+ from Fitch. All have been under review for potential downgrades but are still strong investment-grade ratings. Historically, defaults on municipal bonds - particularly those issued by state and...

    Provided By Charles Schwab

  • White Papers // Jan 2009

    Keep More Of Your Money

    Times are tough. So it's especially important to take advantage of every tax break you're entitled to. After all, it's not what you make but what you keep that counts. This paper gives several tips to consider. Money you put in a traditional IRA is generally tax-deductible unless you're an...

    Provided By Charles Schwab

  • White Papers // Aug 2008

    Election-Year Tax Guide

    Taxes are shaping up to be a pivotal issue in this fall's presidential election. Both candidates are proposing major changes to the tax code. And there's a lot at stake: A number of investor-friendly tax provisions will expire at the end of 2010, and the Alternative Minimum Tax (AMT) continues...

    Provided By Charles Schwab

  • White Papers // Feb 2009

    Bad To The Bone: Will A "Bad Bank" Fix What's Broken?

    Extraordinary efforts are indeed needed as estimates of the ultimate cost of nowadays' financial crisis are growing exponentially. Banks have indeed been building their cash position in the form of Treasuries, agencies and deposits at the Federal Reserve, but their loans and leases have increased by a fraction of that...

    Provided By Charles Schwab

  • White Papers // Jan 2009

    Sophisticated Estate Planning Strategies

    This paper highlights some advanced strategies people can use to accomplish their gift and estate planning goals in a tax-efficient way. Of course, these are but a few of the many estate planning strategies available. Don't be seduced by intriguing strategies or what someone else did with their estate plan....

    Provided By Charles Schwab

  • White Papers // Jan 2009

    Estate Tax Repeal And Lifetime Gifting: The Impact On Your Estate Plan

    Although the estate tax is set to expire in 2010, under current law it comes back in 2011 in all its pre-2001 glory. Many of your estate planning decisions will depend on what you think Congress might do down the road. Gifting provides a couple of added bonuses, as well....

    Provided By Charles Schwab

  • White Papers // Mar 2009

    Fed To Expand Its Balance Sheet Further... Buying Treasuries!

    To no one's surprise, the Federal Reserve's monetary policymaking committee, the Federal Open Market Committee (FOMC) announced today that it has decided to keep its target overnight interest rate, the federal funds rate, in a range of 0% - 0.25%. Since the Fed has exhausted its traditional rate cut mechanisms,...

    Provided By Charles Schwab

  • White Papers // Mar 2009

    Brighter Light At End Of Housing Tunnel

    To broaden the lens, even indicators of overall economic growth are deteriorating at a less dire pace: Commodity prices have plunged; policy makers have unleashed massive stimulus; money supply is surging; credit spreads are narrowing; and housing affordability has skyrocketed. But there's no sugarcoating recent data. Home prices have fallen...

    Provided By Charles Schwab

  • White Papers // Feb 2009

    MBIA Spins Off Muni Business: Any Impact For Bond Investors?

    One of the major stories of 2008 in the muni bond world was the demise of the monoline bond insurers, including the rating downgrades of most of the major players, including AMBAC, FGIC and MBIA. All carried AAA bond ratings, but had their ratings downgraded due to exposure to mortgage-backed...

    Provided By Charles Schwab

  • White Papers // Feb 2009

    Heir Economics

    Receiving an inheritance can be a life-changing event for some, but for most heirs the money will not likely be enough meet their retirement needs entirely. If a person is one of the few who does receive a meaningful inheritance, you'll want to manage it wisely. Of course, receiving an...

    Provided By Charles Schwab

  • White Papers // Nov 2008

    'Tis The Season For Giving

    Year-end is a time when we think about giving, and that includes giving back to the community by donating to our favorite charities. While it may be better to give than to receive, with proper planning it's possible to do both at the same time as you share your good...

    Provided By Charles Schwab

  • White Papers // Mar 2009

    Schwab Sector Views: Navigating Today's Rough Waters

    Real retail sales numbers continue to be dismal at best and, as of yet, have not shown any signs of rebounding. Because consumer spending comprises approximately 70% of the U.S. economy, government officials are attempting to prop up shoppers' ability to spend. However, unemployment continues to rise, and the general...

    Provided By Charles Schwab

  • White Papers // Jan 2009

    "Happy New Year" May Be True In 2009!

    Typically, when the stock market is bottoming, the economic news is still dire, and that's likely no different this time - especially as it relates to the great consumer retrenchment/deleveraging. Consumer confidence registered its lowest reading in history, but does this necessarily signal impending doom? On the contrary: Not only...

    Provided By Charles Schwab

  • White Papers // Jan 2009

    How Bad Can It Get?

    The stock market has already priced in significant damage to the economy. Not only has the market decline exceeded that of the post-war average recession-related bear market, but the pace of the decline is typical of deeper recessions. That is, there are likely worse economic numbers still to come. While...

    Provided By Charles Schwab

  • White Papers // Dec 2008

    Recessions: How Does This One Compare?

    Considering the severity of the financial crises, how does this recession stack up against all the other post - World War II recessions? Although we believe this recession, (which started in December 2007), is consumer-led, it's also affected by the extraordinary combination of headwinds associated with the credit markets, the...

    Provided By Charles Schwab

  • White Papers // Dec 2008

    The Fed's Unconventional 0%-To-0.25% Range

    The FOMC continues to weigh the potential benefits of purchasing longer-term Treasury securities. This is a more explicit reference to the potential of buying Treasuries than was anticipated in the members' statement. They also left the door open for continued unconventional monetary stimulus: "The Federal Reserve will continue to consider...

    Provided By Charles Schwab

  • White Papers // Dec 2008

    Arc Of A Diver: Inflation Succumbs To Deflation

    Good news is lacking today. Although waning inflation is a bright spot, a deflationary spiral, were it to erupt, is no great shakes for the economy. But given that a few short months ago, the world was fretting a massive surge in inflation generally, driven by commodity prices specifically, an...

    Provided By Charles Schwab

  • White Papers // Nov 2008

    A Transformational Era Of Deleveraging

    The era of cheap and easy money is over. Credit will cost more for consumers and businesses, even with debt holdings pruned. Unseizing the credit markets remains a must, but government interest rates are already low (and likely going lower) and banks will want to operate with more normal interest-rate...

    Provided By Charles Schwab

  • White Papers // Feb 2010

    What Makes ETFs Tax-Efficient?

    Many investors have heard that exchange-traded funds are tax-efficient, but it isn't always clear exactly what "Tax-efficient" means and why ETFs have this feature. When a particular investment is described as tax-efficient, it generally means that, if you hold it for a long period of time, you won't have to...

    Provided By Charles Schwab

  • White Papers // Oct 2009

    Plan Ahead With Bracket Orders

    Before you enter an order to buy a particular stock or Exchange-Traded Fund (ETF), you should set your target sell price on both the upside and downside. One of the easiest ways to make this happen is with a bracket order. A bracket order is a customized order (on a...

    Provided By Charles Schwab

  • White Papers // Dec 2009

    Get Diversified With ETFs

    There's a lot in the news about the phenomenal growth of Exchange-Traded Funds (ETFs) - an investment fund typically created to track a specific market index or a basket of investments. Indeed, many traders are attracted to ETFs as they offer exposure to sector or industry trends without the company-specific...

    Provided By Charles Schwab

  • White Papers // Jul 2009

    How You Can Utilize Stock Market Volatility

    Stock investors who like to make tactical shifts in their portfolios can utilize market volatility to help boost returns and manage risk. Market volatility measures recent price changes for broad indexes. But while actual volatility tells you what's already happened, investors must look ahead, so what they need is a...

    Provided By Charles Schwab

  • White Papers // Nov 2009

    ETFs: How Much Do They Really Cost?

    What, exactly, are the costs associated with an ETF? The total cost of owning ETFs can vary significantly depending on what asset class or market segment is being tracked by the fund. When investing in ETFs, consider these four types of potential costs: commissions, management fees, bid/ask spreads, and changes...

    Provided By Charles Schwab

  • White Papers // Nov 2009

    Choosing Between ETFs And Mutual Funds

    Depending on your needs, Exchange-Traded Funds (ETFs), index mutual funds or actively managed mutual funds can help you get the right exposure in your portfolio. This paper explains benefits and scenarios of each type of fund. Exchange-traded funds (ETFs) are essentially index mutual funds that trade like stocks, and there...

    Provided By Charles Schwab

  • White Papers // Sep 2009

    ETFs And ETNs: A Cautionary Tale

    The more exotic the strategy, even in an Exchange-Traded Fund (ETF), the greater the potential for unpleasant capital gains surprises. If you buy Exchange Traded Notes (ETNs), be aware of the credit risks involved. If you invest in ETFs, you favor traditional, broad-based ones. Despite market volatility, the popularity of...

    Provided By Charles Schwab

  • White Papers // Sep 2009

    Leveraged And Inverse ETFs: Not Right For Everyone

    Leveraged funds are Exchange-Traded Funds (ETFs) that promise to provide a multiple of the returns on a given index. An inverse fund tries to deliver returns that are the opposite of the index's returns. In markets that move up and down, leveraged and inverse funds have underperformed what a na?ve...

    Provided By Charles Schwab

  • White Papers // Aug 2009

    ETFs: Beyond The Hype

    It's hard to flip through a financial publication without being bombarded by ads for exchange-traded funds. But despite all the hype, ETFs are not for everyone. Before you leap, consider what they are - and whether they're really right for you. ETFs are basically index mutual funds that trade like...

    Provided By Charles Schwab

  • White Papers // Aug 2009

    5 Myths About ETFs

    This paper explains about five commonly held myths of Exchange-Traded Fund (ETF) investing and why it pays to look beyond your first assumptions. Consider carefully what it is you're looking for from an ETF before you buy - and make sure your ETF delivers what you need. Find out whether...

    Provided By Charles Schwab

  • White Papers // Aug 2009

    Invest Intelligently In ETFs

    Learn about the three main types of Exchange-Traded Funds (ETFs): traditional, niche and exotic. What are they, and when might they be right for you? If you're trying to get market returns and you're investing a large amount of money at one time, traditional ETFs might be a good choice...

    Provided By Charles Schwab

  • White Papers // Nov 2008

    Tis The Season For Giving

    Year-end is a time when we think about giving, and that includes giving back to the community by donating to our favorite charities. While it may be better to give than to receive, with proper planning it's possible to do both at the same time as you share your good...

    Provided By Charles Schwab

  • White Papers // Dec 2008

    Generating Cash Flow From Your Retirement Portfolio

    It's usually better to sell long-term investments held in taxable accounts instead of taking money from your tax-deferred accounts before you have to. Withdrawals from traditional IRAs and 401(k)s are taxed as ordinary income - typically a higher rate than the preferential long-term capital gains rate. What's more, tapping your...

    Provided By Charles Schwab

  • White Papers // Dec 2010

    Complex Vertical FDI And Firm Heterogeneity: Evidence From East Asia

    In this paper, the authors statistically test the validity of the mechanics of complex Vertical Foreign Direct Investment (VFDI) in Japanese machinery FDI to East Asia by estimating a multiple-spatial lag model. From the theoretical viewpoint, in complex VFDI, the production activity of affiliates in a given country is positively...

    Provided By Keio University

  • White Papers // Dec 2010

    A Two-Dimensional Analysis Of The Impact Of Outward FDI On Performance At Home: Evidence From Japanese Manufacturing Firms

    This paper empirically investigates two areas of changes in firm behavior and performance at home before and after investing abroad. The first is the type of Foreign Direct Investment (FDI): horizontal FDI or vertical FDI. The second is the firm's domestic activities of interest: production activity and non-production activity. From...

    Provided By Keio University

  • White Papers // Nov 2009

    Forecasting Annual Inflation With Seasonal Monthly Data: Using Levels Versus Logs Of The Underlying Price Index

    This paper investigates whether using natural logarithms (logs) of price indices for forecasting inflation rates is preferable to employing the original series. Univariate forecasts for annual inflation rates for a number of European countries and the USA based on monthly seasonal consumer price indices are considered. Stochastic seasonality and deterministic...

    Provided By European University Institute

  • White Papers // Jun 2009

    Financial Crises And International Trade: The Long Way To Recovery

    Standard theoretical models would predict that a currency depreciation generates an increase in net exports. However, recent emerging market crises, accompanied by sharp exchange rate devaluations, have often been followed by a fall in or a stagnation of exports. This paper provides a simple theoretical framework which shows that a...

    Provided By European University Institute

  • White Papers // Feb 2009

    Heterogeneous Firms, 'Profit Shifting' FDI And International Tax Competition

    The authors develop a stylized model of international tax competition between a large country and a tax haven. In the large country, firms in a monopolistically competitive industry generate positive profits which can be taxed by the government. Firms have heterogeneous productivity levels and can choose to undertake 'Profit shifting'...

    Provided By European University Institute

  • White Papers // Mar 2010

    Anchors For Inflation Expectations

    The authors identify credible monetary policy with first, a disconnection between inflation and inflation expectations and second, the anchoring of the latter at the inflation target announced by the monetary authorities. They test empirically whether this is the case for a number of countries that have an explicit inflation target...

    Provided By European University Institute