Perhaps you may be amused by the similarities of this article, where I search through hundreds of alternative funds to slay the dragons of inflation and market corrections and the delusions of Don Quixote de la Mancha, who set out on misadventures for chivalry. I am not ready to denounce alternatives as foolish fiction, as Don Quixote denounced chivalry before dying.

Don Quixote and Sancho Panza going to the wedding Gamaches (1850) by Honore Daumier Source: Artchive

For this article, I created the Grins and Giggles Portfolio with the objective to minimize the correlation between the funds for the past six years. I follow this up with the Last Laugh Portfolio Continue reading →

Quality investing delivered one of its worst years on record in 2025. Except when it didn’t. Some quality funds posted top-quintile returns while many languished at the bottom, a divergence so dramatic it demands explanation. The story isn’t that quality failed; it’s that the market split quality investors into winners and losers based on a single tactical choice.

“Quality” funds in 2025

87 funds and ETFs have “quality” as part of their name; 60 of those 87 funds trailed their peers in 2025. Most funds that pursue “quality” Continue reading →

I skimmed through a couple of books for this article about income, searching for ideas. They tend to be very general, tell the reader how to get rich, or focus on risky investments like stocks and real estate investment trusts (REITs). Exchange-traded funds that invest in REITs averaged drawdowns of 38% during the past six years, while the S&P 500 had a drawdown of 24%. Ouch! I have a different perspective on income. Funds should have a high reward for the risk taken. The book that I related to the most was Income Factory – How You Can Live Off Your Dividends in the Future: Grow Your Income with Dividend Growth and Income Strategies (2025) by Sebastian Johnen, because Continue reading →

Hi, Layla.

Chip and I are grateful for the help you’ve given us in learning to be a bit more physically fit, and we were delighted to hear that you were interested in learning a bit about … umm, financial fitness. I know it seems confusing and infinitely complex.

It isn’t. Really, you just need to have a bit of faith, a bit of discipline, and Continue reading →

A tradition dating back to the days of FundAlarm was to annually share our portfolios, and reflections on them, with you. My portfolio, indolent in design and execution, makes for fearfully dull reading. That is its primary charm.

This is not a “here’s what you should own” exercise, much less an “envy me!” one. Instead, it’s a “here’s how I think. Perhaps it will help you do likewise?” exercise. Continue reading →