Articles The difference between the perfect idiot and the man with perfect foresight By Drew Dickson Greed is expecting back more than you deserve given what you put in By Morgan Housel There is almost always another side By Jack Forehand Their performance was not related to their underlying holdings By John Rekenthaler For that…
The Economics of Owning a Home
Should you rent or should you buy? Whether the item is a car or a home, this is a big question that does not fall neatly into the “yes” or “no” pile. There are hard and soft factors to consider, and like everything else in life, tradeoffs abound. Consider the case of a home. Owning…
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 https://twitter.com/abdallahshandle/status/1086029329740505088 https://twitter.com/DavidSchawel/status/1085399057328193537 Charts on who owns the stock market, via Goldman pic.twitter.com/mxOF4uwCp8 — Sam…
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…
