The Wrong Debate

The Wall Street Journal put out an article about the under performance associated with high fee mutual funds. They say: “Consider the performance difference between high-fee and low-fee active funds focused on large-cap U.S. stocks. Over the past 10 years through the third quarter of 2018, the average high-fee option delivered an average annual return of…

Was That The Bottom?

Since the market bottomed On December 26th, the S&P 500 has gained nearly 9%, the strongest nine-day return since 2011. Everybody wants to know whether that was it, but there are no rules for how bear markets end, which is part of what makes investing so entertaining. We’re all just doing our best to navigate…

The Next 20 Years

There was an article in Barron’s over the weekend, It’s Been a Rough 20 Years for Stocks. The Next 20 Should Be a Lot Better. The first part of that headline is factually correct. From 1999-2018, the stock market experienced two crashes, and investors received just 5.6% annually for their troubles. Over the same time,  the Barclays…

These Are the Goods

Articles Resolutions don’t stick because they’re tactics, not systems. They’re strategies, not philosophies. By Ben Carlson No, you’re not going to keep your resolutions. And yes, you should absolutely make them. By Rusty Guinn If someone told you that earnings would increase 26% in 2018 and that profit margins would hit record highs, you would…

Animal Spirits: Market Swoon

Today’s Animal Spirits is presented by YCharts. Mention Animal Spirits to receive 20% off On today’s show we discuss: The market swoon The Ivy Endowments Investors are selling How markets bottom Buying when stocks are down big The stocks millennials bought in 2018 Listen below Recommendations While America Aged by Roger Lowenstein The Behavioral Investor…

These Are the Goods

Articles Only one of the three fundamental types of liquidity are directly in the hands of the Fed. By Mark Dow There is more to life than money By Joe Fahmy Just recognize that financial independence and early retirement are not some magic bullet that will fix your life. By Chris Mamula Who knows who…

A History of Bear Market Bottoms

The Dow just had its best day since March 2009, having many of us wondering, was this the bottom? Is the bear market over? Before we move on and before I get actually’d, the Dow technically never entered a “bear market”. It only fell 19.4% peak-to-trough. We all know how silly these arbitrary definitions are…

Animal Spirits: Bear Market

On this week’s Animal Spirits, we discuss The persistence of CEO performance The fall of General Electric A history of Fed rate hikes A pleasure to YOLO Fake Instagram influencers Dan Egan video Listen here Recommendations It Was a Very Good Year This is marketing Charts mentioned Tweets mentioned Bear market rallies from the Great…

Don’t Fall For It

“The first principle is that you must not fool yourself and you are the easiest person to fool.” -Richard Feynman When stocks fall 20%, investors start asking questions. This demand is met with an endless supply of people happy to provide them with answers. There will be no shortage of people claiming that they nailed the past…

A Few Charts and a Few More Thoughts

“Every past decline looks like an opportunity, every future decline looks like a risk.” – Morgan Housel Another day where the feeling of risk overwhelms the prospects of opportunity. The chart below shows all the times that the S&P 500 declined by at least 1% over 4 consecutive sessions. This has occurred at bottoms (2002,…