“DOUBLE YOUR NEST EGG” the headline screamed. “Now’s the time to jump into cheap stocks, funds and real estate.” Bad timing for a magazine called “Smart Money.” This headline was on the cover of the October 2008 issue—immediately before an epic financial crisis and market meltdown. In early October 2008, the Dow Jones Industrial Average […]
Timing is Everything (but Predictable) Read More »
Legendary investor Warren Buffett once said, “Only when the tide goes out do you discover who’s been swimming naked.” This was the billionaire’s iconic way of saying that risky financial behaviors inevitably get exposed when economic conditions change dramatically. Unless you have been snoozing the last 6-8 months, you probably know the economy is changing.
The Problem with Swimming Naked Read More »
“I bet you’re getting a lot of calls.” I could tell by the background noise he was driving with his windows down. I suppose calling to needle me seemed a good way to pass the time. I didn’t take the bait. “Calls about what?” “This dang market,” he said. “Inflation is out of control. Fuel
When the Markets are Making You Nervous Read More »
Each year the college basketball season concludes with a tournament known as “March Madness.” Part of the appeal is that there’s often a team from a small school that gets on a roll and beats several heavily favored opponents. Fans love these David vs. Goliath storylines. This year, in the men’s bracket, the unlikely underdog
Are You Betting Against the Odds? Read More »
“The stock market is like gambling,” someone told me earlier this week. I understand such feelings. Thanks to inflation, the Russian invasion of Ukraine, and other factors, the markets are more volatile than normal. The S&P 500 is a prime example. It fell 12% earlier this year. It has since recovered about half that year-to-date
When Investing Feels Like Gambling Read More »
An old joke says that if you keep one foot on a hot stove and your other foot in an ice bucket, on average you should be comfortable. That line always makes me smile. It underscores a reality in the world of markets and investing—averages can be both mathematically accurate and experientially awful. Case in
The Problem with Those “Average Returns” Read More »
The stock market is at an all-time high. Which is great, right? Your 401(k) has never been higher, and you’ve never been richer! But wait. “What goes up must come down,” right? If the market is soaring now, is a dip—or a crash—just ahead? It’s a dilemma: Should we be content or concerned? Should we
Do These 3 Things When the Market is Soaring Read More »
“I think I’m just going to wait until after the election.” I am hearing this response nearly every week from someone else afraid to make a decision with a financial impact. In my career I have lived through the elections of Ronald Reagan, George H.W. Bush, Bill Clinton, George W. Bush, Barack Obama and Donald
Waiting on the Election Read More »
“The signs are everywhere…” It was an ominous headline to an email that caught the attention of a client. “Is this something I should be concerned about?” Concern, worry and a buying decision to subscribe to an expensive newsletter was exactly what the email’s author was hoping to elicit. The email’s author had “seen several
Doomsday Always Sells Read More »
Sometimes, you just want your Momma. The safety of that soft touch, the secure hug, the serene voice, and the sentimental smell (even if it is that of meatloaf and Pine Sol). It’s Momma. And it’s safe. That’s what financial markets wanted these last few weeks. Momma. And for financial markets, Momma is spelled C-A-S-H.
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