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Tradestreaming Cascade: The news you need to know (week of October 2, 2011)

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Every week, I send out an email (free) to my subscribers summarizing the must-see events of the past week. It’s everything about the intersection of technology, social media and investing.

Sign up in the sidebar, at the end of this post, or by going here.

You’ll get your 1st issue on Sunday.

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A better solution to socially responsible investing (Larry Swedroe)
A recent study shows that there is a price to pay for socially responsible investing: namely, raising the cost of capital for sin stocks.  That said, Swedroe recommends avoiding SRI and donating the difference in returns to an investor’s favorite charity.

New jobs package should open up crowdfunding (Amy Cortese/NYT)
A friend of Tradestreaming, Amy Cortese penned a New York Times editorial describing some of the changes tabled in the Obama administration’s new jobs package.  This one — with rare bipartisan support — may change the way small businesses raise capital and how investors can tap these new sources of returns.

The Lessons of History [.pdf] (John Bogle)
Delivered to a recent investor conference, Vanguard founder Bogle provides a relatively frank recap of the past 15 years and how successful a passive investment strategy fared throughout the tumult.  Alternative asset classes have bettered returns.  Thanks to Tradestreaming friend Meb Faber for this one.

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Did you see this interview/mini-course I did about using stock screeners and new technology to identify value stocks?  Check it out — Screener.co also provided an extended 60-day trial to Tradestreaming readers.  Contact me if you’re interested.

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Personal Capital: next generation financial advisor (NYT)
The startup firm Personal Capital has raised a boatload of money and has received relatively high marks from most financial press.  Going after the mass affluent, I’m not sure PC changes the role of advisor as much as how services are delivered (online).

A different look at the ROI of a college degree (The Atlantic)
This article provided a good counterbalance to the popular rants railing against the future returns of a college degree.  Basically, a college degree would have yielded over 15% over time.  Though, that said, past returns are not indicative of future results.

Should the Anxious Index cause investor anxiety? (CXO Advisory)
The “Anxious Index” measures the probability of a recession in the next quarter.  And it does this by polling experts and putting their forecasts into a blender.  It turns out (surprise, surprise) that the index is a mildly contrarian signal.

Should the insider trading rule be optional (CNBC)
We talk a lot on Tradestreaming about insider trading — the legal kind.  Anyway, in the NYT, Roger Lowenthal takes issue of the ability for corporate insiders to transact in their firms’ stocks.  John Carney takes this idea to task and instead, calls for opt-in rules enforced by firms themselves.

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