The Road Less Traveled

Look closely at the graph below. The grey bars are the annual stock market returns since 1980.  The red dots are the mid-year (and transitory) sell-offs. There is a red dot associated with every single year. Yes, even as stocks usually have full-year positive returns,...

Playing the Hand We’re Dealt

The financial and economic world has changed.  The US economy and the financial markets are now in a new paradigm where fiscal policies (money creation and government spending), rather than monetary policies (managing the level of interest rates) affect and drive...

Ignore Everything!

The hardest work in investing is not intellectual; it’s emotional.  Benign neglect is, for most investors, the secret of long-term success. – Charley Ellis   I read a really good blog post today, written by financial planner Ashby Daniels titled...

There’s an election coming!

Get ready for the fearless forecasts to start flying. “Every day, investors have to snowshoe their way through a blizzard of propaganda, misinformation, and incomplete and incorrect data. If you respond reflexively to that noise, you’ll do nothing but trade until you...

A Bedtime Tale – Three Little Truths

1) Investing Requires Taking Risks Nothing is risk-free. Even passbook savings and bank CD’s carry their own special kind of risk. It’s tough to live off of your interest payments in a 0% interest rate world. Investment success depends on recognizing and controlling...