Worried About The Election?

The 2016 election is shaping up to be historic, similar to the 57 previous ones we’ve had going back to 1789. People are wondering what a Hillary or Trump presidency might mean for their money. They’re also wondering whether we’ll see a pickup in stock market volatility as we approach November 8th. Volatility will pick…

Everybody Tries To Beat The Market

The first investing book I ever read was The Intelligent Investor. Although most of it went completely over my head, the Mr. Market part of it totally resonated. “Yea, you’re your own worst enemy. Don’t be influenced by the daily fluctuations in the market. Got it.” Then I read the Little Book of Common Sense…

The Next Twenty Percent

  “If you desire a ride to Baghdad, here is a magic carpet; if you desire your enemy dead, here is a magic doll; if you desire unlimited riches, here is a forecast of interest rates.” – Deirdre McCloskey Will the next $2,618,907,150,799 be added to or removed from the U.S. stock market? Nobody would answer…

Man Plus Machine

This weekend on Masters In Business Barry had on (for the second time) one of my favorite thinkers, Michael Mauboussin. Early on in the interview, while they were discussing quantitative models, Mauboussin brought up an interesting point- what happens when you combine the power of a machine with the power of the human brain? Mauboussin…

Seeking Alternatives

One of the appeals of having a portfolio of stocks and bonds is their tendency to move in opposite directions, especially when stocks fall. In fact, there have only been eight times that stocks and bonds both fell for consecutive months and only once did they both fall for three consecutive months. The data above…

Distractions Cost Investors 115%

The S&P 500 is now up 270% from the lows made in March 2009, but how many people were actually able to harvest those gains? In the 89 months since the market bottomed, investors have had had a barrage of distractions thrown at them. From the Sequestration to the Fiscal Cliff and from China to…

Moving The Goalposts

One of the most common ways to distort the truth in investing is to move the goal posts. For example,  Commodities are a great investment; From 2000 through the middle of 2008, they returned 231%, compounding at 15% a year. Over that time the S&P 500 earned nothing. See, by cherry picking the data, you’re not…

Your Money & Your Brain

The first investing book I ever read was The Intelligent Investor, the one that is updated with Jason Zweig’s commentary. And since that time, I have read and learned more from Jason Zweig than anybody else alive. But it wasn’t until recently that I first read his book Your Money & Your Brain. I wasn’t…

Rediscovering Greatness

After five years and seventy different verses, Leonard Cohen finally released Hallelujah in 1984. The mega hit that we know today came onto the scene with a deafening silence, it was an absolute failure. Cohen was performing a few years later, and musician John Cale, who was in the audience, was enthralled by the song….

Shrinking Slices, More Options, And Saying No

Fifty-seven thousand, five hundred and twelve. That’s the number of global funds launched between January 2005 and 2013. Just to be clear, that is not the number of funds in existence over that period, it’s the number of brand new funds. This mind blowing number comes from an excellent new Morningstar study, The Rise and Fall…