Erin Botsford in her book, The Big Retirement Risk says that buying bonds in the wrong market environment could be as dangerous as buying Florida condos in 2005. So what’s a wrong market environment? This… Are you seriously telling me that people are willing to lend money today to the U.S. government for 30 looooongContinue reading “We Need To Talk About Bonds…”
Too Much Portfolio Volatility Can Send You To The Poorhouse…
Pretty much everything in our daily lives, if we were to collect enough data and observe, follow a bell-shaped pattern or dare I say, distribution. Take for example, women’s weight. The average or mean weight say is 150. I didn’t say 150 what so don’t come at me. And there is of course a spreadContinue reading “Too Much Portfolio Volatility Can Send You To The Poorhouse…”
Inflation Is Bad, Deflation Is Worse…
So I went to an In-N-Out Burger (my fav by the way) the other day with my dad and we ordered 2 veggie burgers, fries, and lemonade. The bill ~ $10. Had I been alive in 1948, that same meal at the same exact place could have been had for a mere 75 cents. SoContinue reading “Inflation Is Bad, Deflation Is Worse…”
The Greatest Investing Sin…
Vladimir Lenin once said that there are decades where nothing happens. And then there are weeks where decades happen. The last many weeks feel like that but if we go back in time and run through all the bad that has happened, this is no biggie and this too shall pass. How do I know?Continue reading “The Greatest Investing Sin…”
The True Cost of the Stuff We Buy…
We go shopping every once in a while and usually buy things we need and use. But then we also tend to buy things that we never had any reason to buy. Take me for example. I went with my mom to a mall to shop for something that I needed but then I cameContinue reading “The True Cost of the Stuff We Buy…”
The Big Bad Rule of 72…
Rules, rules, rules. They are all around us and yet we don’t quite follow a lot of them. We are told to respect everyone including the environment but we don’t. We are not supposed to jaywalk but we do. Or at least I did a few times. But then there are rules that you mustContinue reading “The Big Bad Rule of 72…”
Take Mean-Variance Optimization With A Boatload Of Salt…
In a 1952 paper published in the Journal of Finance titled Portfolio Selection, Harry Markowitz laid out a framework that literally transformed the landscape around how portfolio management should be done. Later dubbed the Modern Portfolio Theory or MPT, that seminal paper would go on to eventually earn him the Nobel Prize in Economics aboutContinue reading “Take Mean-Variance Optimization With A Boatload Of Salt…”
What’s Better, Inflation or Deflation?
So I went to In-N-Out Burger (my fav by the way) the other day with my dad and ordered 2 veggie burgers, fries, and a glass of lemonade. The total bill ~ $10. Had I have been alive in 1948, that same meal at the same exact place could have been had for a grandContinue reading “What’s Better, Inflation or Deflation?”
The Other Secret To Getting Rich…Time
Wikipedia defines a polymath as an individual whose knowledge spans a substantial number of subjects and who is known to draw on complex bodies of knowledge to solve specific problems. Take Benjamin Franklin for example. Besides being one of our nation’s Founding Fathers, he was also a leading author of the time. Not only that,Continue reading “The Other Secret To Getting Rich…Time”