Financial Advice For My Fellow Millennials

“It’s virtually impossible for young workers to deploy their investment capital too aggressively, because their human capital overwhelms it.” – William Bernstein Millennials have been taking it on the chin lately for their lack of basic financial knowledge and understanding. There was a fascinating piece in The Week by Ryan Cooper called The Confessions of…

Which Side of the Argument Are You On?

“Stocks are a piece of ownership in a firm.  Taken together, stocks represent the collective wisdom of the business world.  And they represent the promise of future technological advances and future profits from those innovations.” – Ken Fisher

Why the Stock Market Makes You Feel Terrible Every Single Day

“The one rule I have is I give very general instructions to my financial advisor, and then I don’t monitor it. I think that’s good, both because it causes more anguish than pleasure, on average, and because you’re tempted to make stupid decisions if you monitor things too closely.” – Daniel Kahneman As Daniel Kahneman…

When Saving Trumps Investing

As Warren Buffett was closing in on age 60 in 1989, his net worth was $3.8 billion according to the Forbes List. This year, as Buffett approaches his mid-80s, he’s worth $58.5 billion. That means nearly 94% of Buffett’s current net worth was created after his 60th birthday. I’ll come back to these facts again…

How Interest Rates Affect the Behavior Gap

“At any given moment, what the market is doing reflects how we’re feeling right NOW. Not how we’ll feel tomorrow and most likely not how we’ll feel in a month, let alone a year. Short-term market behavior is rarely about anything other than an interpretation of what we THINK is happening or will happen as…

A Check-Up on GMO Fund Performance

“Believe there are bubbles, but don’t go around looking for them and betting the ranch on them.” – Cliff Asness Jeremy Grantham is a legend among investing circles. His quarterly letters are on my must-read list. I’ve seen him speak before and he has the uncanny ability to make complex investing topics easy to understand, which I…

Yes, Stocks and Bonds Can Rise Together

“Some men think that rules should be made of cast iron; I believe they should be made of rubber, so they can be stretched to fit any particular case and then spring back into shape again. The really important part of a rule is the exception to it.” – Paul Graham Stocks and bonds are…

Vetting Your Sources of Financial Advice

“Good advice rarely changes, while markets change constantly. The temptation to pander is almost irresistible. And while people need good advice, what they want is advice that sounds good.” – Jason Zweig Working in the investment industry and writing on this website means I get a decent number of people asking to me about the markets…