The challenge for an investor in this toppy market is how best to get a return out of newly placed money no matter where the market lands. Money markets and short term CDs return little and investing in stocks or exchange traded funds could have its own set of problems. So what's an investor to do?
In the tax free shop at the Heathrow airport, I bought some cosmetics duty free at an exchange rate of $1.65 per pound. I didn't feel so great later on when I found out that the exchange rate for the day was $1.58 per pound. My airport experience is similar to many investors that don’t pay attention to cost and therefore get bit in the butt when they invest. The reason is this they aren’t aware of their loss.
While an academic at Indiana University, I was enrolled in TIAA-CREF, considered a low cost plan for those in the academic, medical, cultural, and research fields. In the past it has questioned corporate governance and executive compensation in an effort to protect its participants Lately, however, I’ve been wrestling with how well I’m been served. My conclusion: not well enough.