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Tag Archives: myths

For The Average Investor, The Next Bear Market Will Likely Be The Last

Just recently Anna-Louise Jackson published an interesting article asking if “The Financial Crisis” still haunted your investing. To wit: “This month marks the 10-year anniversary of the current bull market’s beginnings. Yet, many Americans remain reluctant to invest in the stock market, a scary hangover from the 2007-09 recession. From October 2007 to March 2009, the S&P 500 plummeted nearly 57% and it took more than five years for the index to recover. But the share of Americans with...

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After Two Of The Greatest Bull Markets In U.S. History, Why Are Boomers So Broke?

Last week, Jeff Desjardins of Visual Capitalist wrote in a post: “While it’s true that putting your money on the line is never easy the historical record of the stock market is virtually irrefutable: U.S. markets have consistently performed over long holding periods, even going back to the 19th century.” This goes back to Wall Street’s suggestion of “buy and holding” investments because over 10- and 20-year holding periods, investors always win. There are two major problems with this myth....

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The Money Game & The Human Brain

Jason Zweig, a neuroscience and Benjamin Graham expert, re-published an article last year entitled: “Ben Graham, The Human Brain, And The Bubble.” The entire article is a worthy read but there were a few points in particular he made that are just as relevant today as they were when he wrote the original essay in 2003. “At the peak of every boom and in the trough of every bust, Benjamin Graham‘s immortal warning is validated yet again: ‘The investor’s chief problem — and even his worst enemy...

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The Money Game & The Human Brain

Jason Zweig, a neuroscience and Benjamin Graham expert, re-published an article last year entitled: “Ben Graham, The Human Brain, And The Bubble.” The entire article is a worthy read but there were a few points in particular he made that are just as relevant today as they were when he wrote the original essay in 2003. “At the peak of every boom and in the trough of every bust, Benjamin Graham‘s immortal warning is validated yet again: ‘The investor’s chief problem — and even his worst enemy...

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Experience Is The Only Cure

I recently penned an article which discussed the Fed and the risk of a monetary policy error in the future. This isn’t a possibility, it is a probability given that every Fed rate-hiking campaign in the past has led to a financial market-related event, recession, or worse. Of course, when you publish views on a regular basis it always attracts those“individuals” who want to consistently deride and distract an otherwise informed debate. Normally, I don’t respond to comments because there is...

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Experience Is The Only Cure

I recently penned an article which discussed the Fed and the risk of a monetary policy error in the future. This isn’t a possibility, it is a probability given that every Fed rate-hiking campaign in the past has led to a financial market-related event, recession, or worse. Of course, when you publish views on a regular basis it always attracts those“individuals” who want to consistently deride and distract an otherwise informed debate. Normally, I don’t respond to comments because there is...

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Should You Ignore John C. Bogle?

Listen, I get it. When markets are rising everyone wants to be bullish. Why not? As Bob Farrell’s Rule #10 states: “Bull markets are more fun than bear markets.”  It is also safer to be “always bullish.” No one remembers the guy that called the previous bull market peak as human psychology is designed to “mask pain.” If it wasn’t, women would never have children after their first one. Despite the fact that many media commentators and pundits yelled “buy” all the way down in 2008, people only...

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Interview Chart Book: The Markets Are Waiving A Huge Red Flag

Last week, I spent some time with Chris Martenson of Peak Prosperity discussing a variety of issues ranging from the stock market to the economy to the debt. As you listen to the embedded interview, I have included the relevant charts to support the points I was making. I have edited down the full transcript to hit the important points, but the full interview is posted at the bottom for your listening pleasure. Chris: Lance, equities in the S&P 500 and NASDAQ within whispers of all time...

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The Myths Of Stocks For The Long Run – Part XI

Written by Lance Roberts and Michael Lebowitz, CFA of Real Investment Advice CHAPTER 11 – Portfolio Strategies For The Long-Run Over the previous 10-chapters of this series, we have discussed many of the fallacies of investing for the long-term. The two biggest of these issues, which impacts performance over time, is the lack of capital to invest and human psychology. As Howard Marks once said: “I’ve been in this business for over forty-five years now, so I’ve had a lot of experience.  In...

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The Myths Of Stocks For The Long Run – Part X

Written by Lance Roberts and Michael Lebowitz, CFA of Real Investment Advice CHAPTER 10 – Risk Knows No Age “If you are a young investor, you need to take on as much risk as possible. The more risk you take, the greater the reward.” This is actually a false statement. Let’s start with the definition of “risk” according to Merriam-Webster: 1: possibility of loss or injury : peril 2: someone or something that creates or suggests a hazard 3a : the chance of loss or the perils to the subject...

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