You Should Listen to the Smart People, Right?

“Nobody wants to be blindsided by unanticipated events. That, in part, is why we as human beings need to believe we can predict, and prepare for, the future.  Though it is understandable, investors should think twice before investing based on those instincts, because those instincts usually turn out to be nothing more than speculation.” –…

New Round Numbers in Stocks! What Does it All Mean?

“What to do when the market goes down? Read the opinions of the investment gurus who are quoted in the WSJ. And, as you read, laugh. We all know that the pundits can’t predict short-term market movements. Yet there they are, desperately trying to sound intelligent when they really haven’t got a clue.” – Jonathan…

Timeless Advice from Jesse Livermore

“Whenever I have lost money in the stock market I have always considered that I have learned something; that if I have lost money I have gained experience, so that the money really went for a tuition fee. A man has to have experience and he has to pay for it.” – Jesse Livermore Reminiscences…

The Difference Between a Correction and a Crash

A bear market is normally defined as a drop of 20% or more in stock prices. By this definition, according to BAML, there have been 25 bear markets since 1929. That means markets have averaged one roughly every 3.5 years or so. Unfortunately, market averages aren’t neat and tidy. They trade in both short and…

You Might Have Really a Long Time Horizon to Invest

The Atlantic published an interesting graphic recently on how the average life expectancy has changed from 1880 to today. In 1880, the average life expectancy was 39.4! Fast forward to a baby born in 2012 and their average life expectancy nearly doubles to just shy of 80 years. Each of the dots on the graph…

Why Does the Middle Class Hate Stocks?

“If you’re investing for a lifetime – and you should be, saving for retirement and educating your kids along the way – if you’re 20 years old now, you should be thinking 60 or 65 years as your time horizon.” – John Bogle