Ben Carlson

More Stock Bubble Talk

“It’s one of my first principles that we never know where we’re going – given the unreliability of macro forecasting – but we ought to know where we are.” – Howard Marks

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.” –…

Would You be Gullible Enough to Invest with Bernie Madoff?

“There are some frauds so well conducted that it would be stupidity not to be deceived by them.” – Charles Cotton I was reading the book Think Twice by Michael Mauboussin recently (great book for anyone interested in behavioral psychology and how your brain processes information in a counterintuitive way) and he shared a story…

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…

My Black Friday Shopping Strategy

“People who buy things are suckers.” – Ron Swanson Just kidding. I’m way too impatient and/or lazy to get up early and deal with the huge crowds on Black Friday. My Christmas shopping strategy is to do as much of it online as possible. Amazon is my go-to first option. They have nearly everything on…

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…