January 2019

Animal Spirits: Adverse Variance

On today’s podcast we discuss Money market funds are seeing inflows The 20 most successful hedge funds The most important investors of all time Adverse variance The valuation gap is wide… …But should it be? The makeup of the U.S. stock market Who owns all the stocks? Swim to where the fish are swimming How…

I Guess I’m Bearish Now

One of the simplest ways to explain how a market functions is that rising prices attract buyers and falling prices attract sellers. Theory doesn’t always cooperate with reality, however, because prices don’t always fall neatly into one of these two columns. Often times prices are rising and falling and falling and rising. It’s never easy…

The Single Greatest Error

A reader asks, “As an investor, how should I view the correlation between being bullish on the product and being bullish on the stock?” The idea that you should buy what you know goes something like this- “I cannot believe how much money I spend at Costco. Hey wait a minute, why don’t I buy some…

These Are the Goods

Articles People think they want expert advice, but what they really want is advice that sounds like something an expert would say By Morgan Housel On the timeline we live, the situation is binary. By Corey Hoffstein Life isn’t about the hand we are dealt, it’s about how we play it By Nick Maggiulli The…

Animal Spirits: Stay the Course

On today’s Animal Spirits, we discuss: Jack Bogle (me) Jack Bogle (Ben) Pay yourself first Student loans and the housing market Housing and rates Druck in 1988 Listen here: Recommendations Stay the Course Clash of the Cultures Charts mentioned Tweets mentioned Ladies and gentlemen my hero, @nealbrennan pic.twitter.com/MixS2dH8Wo — ya mum's basement (@abdallahshandle) January 17,…

In or Out

“Should I get out of the market?” This is a question that ought to be eliminated from the investor lexicon. Healthy investing, like everything else, is all about moderation. Take Obi Wan’s advice, “Only a Sith deals in absolutes.” In a perfect world  you would determine what you want from your life and how much…

Tumultuous Times

Take a look at the table below of the worst days for the stock market over the last ~50 years. You’ll see the usual suspects, Black Monday, the Asian currency crisis in 1997, the Russian crisis in 1998, and 5 days from the second half of 2008. Then there’s one that looks like it doesn’t…

These Are the Goods

Articles Research has shown that female investors are more likely than men to focus on a family’s financial goals over their own absolute investment performance By Blair duQuesnay Consider saving to be a bill you have to pay. Your spending is the negotiable part. By Daniel Egan If you had a plan in place, stick to it; if…

Bogle’s Big Mistake

The world lost a legend this week. Jack Bogle had a greater impact on the average investor than anyone who ever lived. Bogle, however, was not an overnight sensation. The index fund, which he is best known for, wasn’t created until his fifth decade on the planet. I wanted to share the challenges he overcame…

Now Show Japan

I did a post a couple of weeks ago about the potential benefits of dollar cost averaging. To recap: It’s automated It’s a great way to force you to save money It gives you the ability to systematically buy low, with the cherry being that you’re buying more the lower stocks go. I explained that…