“If you spend 13 minutes a year trying to predict the economy, you have wasted 10 minutes.” – Peter Lynch Many investors assume that the stock market anticipates economic developments. Or that the latest GDP number has a huge effect on the market’s movements. Over the long term there is virtually zero correlation between the…
Common Sense Links for the Week
Here’s what I’ve been reading this week: How to fix America’s wealth inequality (The Atlantic) The most inevitable headline of all time (The Motley Fool) Surprise! It’s been a decent decade for stocks (Yahoo! Finance) Bobby Knight’s investing advice (MarketWatch) Why time frames matter to you (The Big Picture) Hidden credit card benefits (Lifehacker) How…
Can You Handle Investing In Stocks?
When we got engaged my wife and I had a discussion about how we would run our finances once we were married. This was obviously a topic that was breached by me since I am the personal finance nerd of the relationship. But she was all for it. We covered our spending habits, budgeting, saving,…
How to Manage Your Money on Auto Pilot
“Human decision-making is complex. On our own, our tendency to yield to short-term temptations, and even to addictions, may be too strong for our rational, long-term planning.” – Peter Singer “Truly successful decision-making relies on a balance between deliberate and instinctive thinking.” – Malcolm Gladwell We all like to think that we are good at…
Is Real Estate a Good Investment?
“Housing takes maintenance, it depreciates, it goes out of style. So why was it considered an investment? That was a fad. That was an idea that took hold in the early 2000s. And I don’t expect it to come back. Not with the same force.” – Robert Shiller Purchasing a home is the biggest investment…
How to Choose the Right Asset Allocation
“By choosing to place asset allocation at the center of the investment process, investors ground the decision-making framework on the stable foundation of long-term policy actions. Focus on asset allocation relegates market timing and security selection decisions to the background, reducing the degree to which investment results depend on mercurial, unreliable factors. Selecting the asset…
Common Sense Links for the Week
The S&P 500 has been trading right around the 1500 level for most of 2013. The first time it crossed that mark was in March of 2000. It did it again in May of 2007. Just some food for thought on the crazy ride the markets have been on for the past 13 years. Here…
How to Get Started with Asset Allocation
“Once you set your asset allocation, stick to it no matter how greedy or scared you become.” – John Bogle, Founder of The Vanguard Group Your asset allocation is one of the most important decisions you can make when figuring out how to invest your retirement funds. Studies on the subject vary, but many show…
Stock Investing Tips to Combat Fear
“Don’t try to buy bottoms and sell tops, it cannot be done except by liars.” – Bernard Baruch Stock investing is not easy, but don’t try to make it more complicated than it has to be. With stocks at 5-year highs, I thought it would make sense to visit a question I have gotten a…
Common Sense Links for the Week
Each week I round up the best financial news from around the web. Enjoy. The 5 biggest lies on Wall Street (MarketWatch) Are bonds now riskier than stocks? (Money) The third stage of economic grief (MSN Money) Why it’s hard to stay with value stocks (Wall Street Journal) Investors fear another crash with Dow at…
