“You cannot manage outcomes, you can only manage risks.” – Peter Bernstein Last week Josh Brown laid out a really unique theory at The Reformed Broker with The Relentless Bid, Explained. The main takeaway from that piece is that there always seem to be a bid under the market when stocks drop because the investment advice…

“If you asked someone on the street 100 years ago, ‘How’s the economy doing?’ They wouldn’t have had any idea what you were talking about.” – Jacob Goldstein, Planet Money NPR’s Planet Money recently aired an interesting segment called The Invention of the Economy. It discusses the fact that talking about “The Economy” at large…

“If you’re emotional then you’ll buy at the top when everybody is euphoric and prices are high. Also, you’ll sell at the bottom when everybody is depressed and prices are low.” – Howard Marks

“Far too many investors fail to understand that the strategy to get rich (take risks) is entirely different from the strategy to stay rich (minimize risks, diversify the risks you take, and don’t spend too much).” – Larry Swedroe

“When a mood of excitement pervades a market or surrounds an investment prospect, when there is a claim of unique opportunity based on special foresight, all sensible people should circle the wagons; it is time for caution.” – Galbraith

The infamous 1979 Businessweek cover story entitled “The Death of Equities” is widely viewed as one of the best contrarian indicators of all-time. Stocks went on to have one of the greatest bull markets in history not too long after this story was published. But when I read through the original article recently I was…

A few weeks ago I read an article that made the bold claim that passive investing would be free within 5 years.

“An economist is an expert who will know tomorrow why the things he predicted yesterday didn’t happen today.” – Evan Esar

“This is just another of an endless series of experiences over time that have demonstrated that the future of security prices is never predictable.” – Benjamin Graham Some high profile talking heads in the investment industry have been making the case that past averages of profit margins, earnings, P/E ratios and other valuation tools suggest…

“Be very careful using the past to understand the future. Past multiples are only relevant to the degree to which the underlying drivers of value are consistent through time. In fact, many of these drivers have changed, greatly diminishing the utility of past averages.” – Michael Mauboussin In keeping with my recent theme about the…