Mickey Kim: Will ‘bull market’ continue or are stocks poised for a tumble?
Taking a walk down “Memory Lane” sometimes brings back painful memories but can also reinforce important lessons.
Mickey Kim
Articles
Mickey Kim and Roger Lee: FedNow service will revolutionize, disrupt payments
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.
Mickey Kim and Roger Lee: Debt-ceiling brinksmanship is the ‘sword of Damocles’
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.
Mickey Kim: Biases can destroy NFL Draft, investor returns
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 […]
Bank failure shows fragility of industry’s confidence game
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.
Mickey Kim and Roger Lee: Microsoft’s ‘Sydney’ chatbot shows the dangers of AI
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.
Mickey Kim and Roger Lee : Dominoes fall as former crypto titans bite the dust
Indeed, the very first Bitcoin was “mined” in 2009. By late 2021, the market value of cryptocurrencies reached a staggering $3 trillion.
Kim and Lee: COVID put ‘globalization’ in ICU; Putin pulled the plug. Now what?
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.
Kim and Lee: Interest rate hikes strip veneer from glamorous growth stocks
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.
Kim: ‘Buy the dip’ but beware of tax pitfalls as year ends
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.
Mickey Kim: Economic storms are inevitable; so are bold, unreliable forecasts
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.
Mickey Kim: History suggests post-midterm election bounce for stocks
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.
Mickey Kim: To make money in stocks, don’t get scared out of them
We are currently in a bear market (usually defined as declines greater than 20%). This is not something to be feared—just understood.
Mickey Kim: Bursting speculative bubbles leaves financial destruction path
The narrative of abundant, ultra-cheap credit was a tide that lifted asset classes of all types.
Mickey Kim: Rising rates: How it happened—and why
Low interest rates spur economic growth by making it cheaper to borrow and spend. Conversely, higher rates can slow an overheating, inflationary economy.
Mickey Kim: Energy insecurity and $4 gas could be here to stay
The U.S. Securities and Exchange Commission has proposed new climate-related disclosures that will be a tremendous burden on oil and gas companies.
Mickey Kim: Take it from Buffett, ‘Never bet against America’
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.
Mickey Kim: Sudden-death aversion leads to “suboptimal” choices
The process-oriented coach or investor takes the action with the highest chance of success.
Investing: 2021 was a high-return, low-volatility ‘unicorn’
Investors should expect more modest returns in 2022.
Mickey Kim: Investors should resolve to ‘KISS’ in 2022
Investors consistently hurt themselves with wrong-footed attempts to “time the market” and by chasing past performance, when they would be far better off to “keep it simple, stupid,” or KISS.