The two conditions are usually unrelated. Mr. Market is concerned most with the question of whether, in 6 to 12 months in the future, economic conditions will be better or worse. More specifically, an investor continuously makes a judgment about the probable progress of individual companies, industries, and the economy, [...]
Several months ago, when Covid-19 was first starting to spread domestically, I wrote a column about the importance of having a plan in place should the virus get really bad here in the area. In all of my planning, the one thing I didn’t think to do was get a [...]
This is a scary time, not only has the coronavirus done great harm to our population’s physical health, it has also delivered a crushing blow to our financial health as well. While I am hopeful that the worst has now passed, the economic impact of this global pandemic has been [...]
The primary rule of financial markets’ behavior is that Mr. Market will do whatever it takes to confound the greatest number of investors, market experts, et al. No one else could possibly be so fickle and unpredictable. I can safely say that almost no one expected the current bullish run [...]
A strong trend change in investing has developed over the past few years. Particularly after 2008, many folks have given up on private investing for growing their long-term wealth. This latest correction of both debt and equity markets obviously will not help. In the Midwest, we do not even like [...]
The stock market, as measured by the S&P 500, just had its fastest drop of 30%, ever. The others in the top 5 are 1934, 1931, 1929 and 1987. That’s some scary company to keep. Only one of these was more short-term in nature, the 1987 crash. Should we heed [...]
As the coronavirus continues to wreak havoc on our economy many both in the private and public sectors are trying to assist those worst hit. With the suspension of the NBA season multiple NBA players and owners have announced their intention to help hourly employees at basketball arenas across the country. New [...]
This morning I received a call from a wise octogenarian client. Is it time to buy? he asked. What was he thinking? He described his experience of 1987. In October that year, the S&P 500 index dropped by 30 percent, over 20 percent on that one Monday, October 19. (Sounds [...]
Recently released data from the Federal Reserve shows that the Millennial generation, of which I am member, own far less appreciating assets than previous generations have owned at a similar age. According to the study, Millennials at age 30 own just 4.6% of total US assets compared to the 7.8% [...]
I’m a planner, I always have been. Perhaps it’s my pessimistic nature, but generally speaking, I assume things left to chance will turn out badly. For that reason I live by the credo “hope for the best, but plan for the worst.” As you might imagine, threats like the coronavirus [...]
