Sometimes we gain insights in the most unremarkable settings. While celebrating our granddaughter’s fifth birthday last week, it struck me how different the world of an infant is today, from when our kids were her age; and how companies that cater to the infant demographic have succeeded in getting us to spend way more on… Read more »
What are you missing out on? Probably not as much as you think. But in our hyperconnected world with its 24/7 news cycle, the Fear of Missing Out (FOMO) has made many people focus more on what they’re not doing than on what they are doing. That can lead to some bad decisions… Read more »
A familiar refrain from athletes and their trainers is, “no pain no gain! That quote may ring true in the field of fitness and athletic endeavors, it is certainly not the case in the world of finance. In fact, we’ve just come off more than a decade of all gain with very little pain. Is… Read more »
It should come as no secret to investors that bear markets (a decline of 20% or more from a previous high in the stock market) occur with random regularity. They are the price that investors pay for the long term superiority of stock returns over most other asset classes. During the euphoria of bull… Read more »
Nobody likes to see their retirement savings dwindle during a pullback in the market. However, for those on the cusp of retirement or just settling in, downturns in the market can pose an extra threat to their overall financial security. Research has shown that particular care needs to be taken during bear markets for… Read more »
Update: Congress reached a deal in early October to raise the debt ceiling through December. While this action avoided the first-ever default of U.S. debt, it merely kicked the can down the road. Democrats and Republicans remain very far apart on a longer-term solution. The U.S. faced a debt ceiling crisis very similar to… Read more »
The S&P 500 is currently sitting at a new all-time high. The index is up more than 20% this year, after gains of 18% and 31% the last two years. Not bad. We haven’t even had a correction of more than 5% since last November. It’s never been a better (or easier) time to be… Read more »
Spending what they don’t have works for politicians at the national level (who don’t need to balance a budget). Cutting taxes and/or increasing spending brings home the bacon and provides job security. History is instructive in this regard. Ronald Reagan increased the national debt by 186% while in office, percentage wise higher than debt… Read more »
The term “overview effect” was coined in 1987 by author Frank White to describe the intense awe astronauts feel when viewing the earth from space. Astronauts report viewing the earth as incredibly “fragile” and have been documented to see the earth (and life itself) differently upon their return, wanting to protect the earth (and all… Read more »