The investors’ mantra to “buy low, sell high” seems both simple and easy, but unfortunately, we humans are hard-wired to do just the opposite, and our bad habits of “chasing performance” and trying to “time the market” cause us financial harm.
Fitch warned on May 24 its AAA rating for the United States was at risk as the June 1 “X-Date” on which the country would default rapidly approached.
Taking a walk down “Memory Lane” sometimes brings back painful memories but can also reinforce important lessons.
The widespread adoption of smartphones led to the creation of an entire industry promising to make transferring funds quick and easy at any time, day or night, with a couple of clicks.
To gain a better understanding of the debt ceiling, think of the federal government as your spendthrift friend who, despite best intentions, consistently spends more than he earns.
The NFL Draft and securities markets both provide researchers with huge amounts of data for analyzing judgment under uncertainty and decision under risk. Research leads to understanding how NFL general managers and investors make choices when resources are at stake and the outcome is unknown. In other words, you discover how forecasts are made and […]
What was true for the Bailey Bros. Building & Loan in “It’s a Wonderful Life” still rings true for J.P. Morgan today: If too many depositors demand their money back at the same time (a bank “run”), you can’t pay them all, and the bank fails.
At the same time, we can’t help but see the similarities between the hype surrounding how AI is going to disrupt the way we live and learn with the excitement over how cryptocurrencies were going to replace government-issued currencies and “de-fi” (decentralized finance) was going to render our current financial system obsolete.
Indeed, the very first Bitcoin was “mined” in 2009. By late 2021, the market value of cryptocurrencies reached a staggering $3 trillion.
The combination of COVID and Russia’s invasion of Ukraine delivered the coup de grace to globalization by exposing the fragility of interdependence and risks of offshoring.
Warren Buffett famously said, “It’s only when the tide goes out that you learn who has been swimming naked.” Indeed, ultra-low interest rates were the tide that lifted all boats.
Absent a bodacious post-midterm election bounce and/or late-year “Santa Claus” rally, stock and bond mutual funds seem likely to end 2022 in deeply negative territory.
Two of the greatest minds in investing believe economic and market forecasts offer only the illusion of certainty and you should never base your decisions on them.
Historically, stock prices have been: 1. weaker in MTEYs (median annualized return of 3.1% for the Dow Jones industrial average going back to 1900) than in years one (12.7%), three (14.8%) or four (7.4%) of a presidential cycle, but, 2. stronger in the months immediately following the election itself.
We are currently in a bear market (usually defined as declines greater than 20%). This is not something to be feared—just understood.
The narrative of abundant, ultra-cheap credit was a tide that lifted asset classes of all types.
Low interest rates spur economic growth by making it cheaper to borrow and spend. Conversely, higher rates can slow an overheating, inflationary economy.
The U.S. Securities and Exchange Commission has proposed new climate-related disclosures that will be a tremendous burden on oil and gas companies.
It’s important to note that, while stock prices can be extraordinarily volatile (like recently), the intrinsic values of the underlying businesses are much less so.
The process-oriented coach or investor takes the action with the highest chance of success.
