Something rare happened in the S&P 500 this year. The index has experienced a double-double-digit drawdown (kind of like double secret probation?) for the first time since 1990. That means the S&P 500 fell 10%, made those losses back, only to fall 10% yet again. The only other years on record I could find when this happened…
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The Amazons of the Fund World
The Wall Street Journal had a headline that got a bunch of finance people in a tizzy yesterday: What?! The father of index funds is worried about…index funds?! People need to settle down and read the actual article. But before I get to this story let’s look at a cool graph about Amazon Prime you can…
Talking ETFs, Volatility, Bonds, Value Investing, Endowments & Retirement Withdrawal Strategies
I was in New York City this week for a short trip to visit our headquarters in Bryant Park, tape some new segments for upcoming podcasts episodes, eat enough to put me into a food coma, see some stand-up comedy, and visit with colleagues and friends. This included an appearance on Bloomberg IQ to chat…
Asset Allocation For Investors With an Appetite For Risk
A reader asks: I recently started my first real job, and I am currently setting up my 401k. I am selecting my asset allocation. Using the website portfolio visualizer, I have been back testing different allocations. I came across an interesting portfolio that beats most of the allocations on the website (Sharpe ratio and CAGR)….
Animal Spirits Episode 54: Spirit Animal
On this week’s Animal Spirits with Michael & Ben we discuss: How long until the next bear market hits? Can you quantify recession predictions? What impact do the mid-term elections have on stocks? How often do bonds outperform stocks over 30 year periods? How many Americans consider themselves “financially healthy”? Should you combine your finances…
Under Pressure
It’s estimated 44% of eligible voters didn’t fill out a ballot for the 2016 elections. That amount of people vastly outnumbered those who voted for Trump, Clinton or any of the third party candidates. Here’s the data courtesy of The Big Picture: Trump and Clinton were both in the 60 million range while the number of…
Tiny Improvements, Big Results
“Habits are the compound interest of self-improvement.” – James Clear I hear from young people on a regular basis who complain that it’s impossible for them to save money. The list holding them back is a long one — student loans, low wages, rent, the high cost of avocado toast, and the desire to actually enjoy…
How Much Should You Charge?
I was having dinner with a group of friends when someone asked what I thought the key to a happy marriage was. My tongue-firmly-in-cheek response was “a king-sized bed.” My wife and I bought a memory foam bed a number of years ago and there’s no way we could ever go back to a regular…
The Relative Anchor in Rates
The 30-year fixed mortgage rate is inching ever closer to 5%, up from 3.35% in May of 2013. This is causing people to worry about how this will impact the housing market. The 10-year treasury yield is above 3% been after bottoming out under 1.4% in the summer of 2016. This is causing people to…
When Stocks Fell 10%…
As of the market’s close yesterday the S&P 500 was down 9.4%. Not quite a 10% correction but it’s a stone’s throw away. The question all investors would like to know is how much further this downturn has to go. The answer is I don’t know and neither does anyone else. But we can look…
