Invest Like a Stoic

by Bill Parrott on
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Stoics would have made great investors because they focused on issues they could control. Marcus Aurelius, Epictetus, and Seneca would probably have much to say about today's markets or, more importantly, investors' reactions to the performance of stocks and bonds.

Stocks and bonds face strong...

Do You Suffer from Occupational Burnout?

by Bill Parrott on
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People are fried. After two years of COVID, the Ukraine War, unaffordable homes, and a stock market correction, people are sick and tired of being sick and tired. I'm a financial planner, not a therapist, but sometimes I feel more like Frasier Crane than Peter Lynch.

Talking to a financial...

Gambling and Investing

by Bill Parrott on
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Will Rogers said, “Don’t gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don’t go up, don’t buy it.” Sound advice.

Over the past decade, the Nasdaq composite index has risen 347%, averaging 16.15% per year. A $100,000 investment is now worth...

Can You Lose All Your Money?

by Bill Parrott on

Stocks and bonds continue to plummet, and there appears to be no end to the misery. The S&P 500 is down 9.6%; bonds have dropped 9.8%. As bad news mounts, can you lose all your money from stocks or bonds? The odds are pretty low if you diversify your assets across classes, sectors, and countries.

...

Should You Sell Your Losers?

by Bill Parrott on

Bill Ackman, founder, and CEO of Pershing Square, recently realized a $400 million loss after liquidating the firm’s Netflix position, which he purchased in January.[1] After Netflix reported earnings, the stock fell 35%. It currently trades for $218.24 per share, down 68% from its peak.

Chart, line chart

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My Investment Shopping Cart

by Bill Parrott on
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Peter Lynch, the legendary portfolio manager of the Fidelity Magellan Fund,  said, “Buy what you know.” As a result, I created my shopping cart investment portfolio consisting of twenty companies my family and I use often. And, like a regular shopping experience, I substituted some products because...

The Middle Child

by Bill Parrott on
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Being the middle child is tough; ask Jan Brady, Lisa from the Simpsons, or Malcolm in the Middle. Most of the attention falls on the firstborn child or the family's baby. Mid-cap stocks suffer the same fate because investors want to own large-cap or small-cap stocks. 

Since 1980, mid-cap stocks...

Small Things

by Bill Parrott on
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Good things come in small packages, which is true for small company stocks. Since 1972 Dimensional Fund's small-cap index has more than doubled the return of its large-cap index, generating an annualized return of 12.7%, compared to 10.9% for large caps. The index returns date to 1927, and the best...

Emerging Markets

by Bill Parrott on
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Emerging markets account for about 14% of the world's stock market cap, or $10 trillion in assets.[1] Companies listed in Brazil, Mexico, Taiwan, Korea, China, and India account for most of the assets in this sector.

Over the past decade, the S&P 500 has trounced the MSCI Emerging Markets Index...

What A Brutal Year!

by Bill Parrott on

Stocks and bonds are falling while commodity prices are soaring. The Federal Reserve is raising interest rates, investors are not happy, and they are losing patience! However, I'm referring to 1994, not 2022.

In 1994, the S&P 500 fell 1.54% and, at one point, was down 9%, and long-term government...

Do You Want More Income?

by Bill Parrott on
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Do you want more income? Writing options is an excellent way to generate a few extra dollars if you own individual stocks. Rising interest rates and increased volatility have made option premiums ripe for picking.

Incorporating an option writing strategy can boost your cash flow in a low...

Do You Offer Insurance?

by Bill Parrott on

Insurance is one thing few people love to buy, and it is something we hope we never use. Thankfully I've never used my homeowner's insurance to rebuild my home from a fire though I've been paying premiums for a quarter of a century. I would have been better off investing my dollars in the stock...