As expected, the financial markets are having a very crazy week. Starting Monday, with a shocking -3,000 point DJIA drop (-13%), the week was filled with volatility. It wasn’t the environment I expected to find any opportunity in, but on St Patrick’s Day (Tuesday), I think I found the ‘Luck of the Irish’. Longtime readers have heard my woeful tale of crashed MegaCorp stock options … Continue reading Lucky Inflection Point?
Lots of mayhem on Wall Street right now with the media focusing only on the coronavirus. I’ve had a couple people ask me about it, so I thought I would shoot out my thoughts today. I think the coronavirus does represent a significant short-term financial risk while businesses and government work to control the impact of it on global corporate supply chains. At the same … Continue reading Market Valuation – Where Are We Now?
Consumer confidence is a big part of the economy’s ongoing performance. If people believe that things are going well, they are more likely to go well. It’s not a perfect correlation, of course, but it is better than the opposite. With that in mind, I was encouraged to see the latest numbers from Gallup on how Americans are feeling right now. They polled people on … Continue reading Americans Feeling Positive About Their Financial Positions
One thing I paid zero attention to at the end of 2019 – when I had my heart attack – was how great the financial markets finished the year. Thank goodness the markets weren’t collapsing the way that they had at the end of 2018, or maybe I would have had a double heart attack! Now that I’m back home and recovering, I thought I … Continue reading Great Markets In 2019
The S&P 500 is up a whopping +24.4% so far in 2019 and many investors are feeling giddy. Despite tariffs, politics, and slow growth in Asia & EU, the American economy continues to chug along. Hooray for growth! It’s not hard to forget that people were quite pessimistic coming into the year. Goldman Sachs had predicted markets to only be up “modestly” in 2019, with … Continue reading Financial Markets Check-In
I’m not sure why I thought this was a good idea, but I ‘bet myself’ $1,000 in imaginary money this past week on all 14 NFL games, 3 NHL games, 2 NBA games, and all 5 games (so far) of the World Series. It’s a great time of year for sports, so I thought I would see if – on paper – I might have … Continue reading Sports Betting Experiment
When I was working, it seemed that the climb toward our FIRE escape from MegaCorp was slow and steady. Each year our nest egg grew bigger. Sometimes faster, sometimes slower. Even in a very bad year like 2008, we managed to eek out some growth. It felt like the cards we were being dealt were always resulted in a pretty good hand. That has not … Continue reading Retirement Savings Volatility
Someone asked me recently “how did you first learn about the stock market?” I first noted that I am not particularly astute when it comes to stocks (I’m an index fund guy), but the basic operation of public corporations and the stock market is something that I first learned about when I was a kid. My Dad would talk about the stock market and had … Continue reading How Did You Learn About Stocks?
The colorful and entertaining Callan ‘Periodic Table’ was recently updated with 2018 market results. It tracks the investment returns of key indices over the past two decades. The most recent year – the 20th in the chart – was challenging. As you can see, cash was king and few investments posted positive returns. I have often referred to the chart as “fascinating, but useless” because … Continue reading The Dumbest Investment Chart
I’ll begin by warning you that this is one of those investing topics, I will claim to have very little understanding of. I thought I might learn a little bit about it through the process of writing this piece. Perhaps you will learn a little too. The yield of bond rates has become inverted recently for the first time in since 2007. This means that … Continue reading Inverted Bond Yield – Harbinger of Recession?