Stay the course is boring financial advice, and people hate it, especially when stocks fall. Doing nothing is challenging; it's hard, and it feels like a cop-out. When stocks fall, clients want action; they want to rearrange the deck chairs and take control of the situation, but it could do more...
Growing up, I was a picky eater and tried to limit my intake to peanut butter sandwiches, chips, and M&M's. It worked for several years, but I needed to expand my palate as I grew older. My expectations for fruits and vegetables were low, but I began to appreciate more refined foods as I grew older...
I've worked with Patty (not her real name) for the past thirty years. She became a client when I worked for a large Wall Street firm, and in the early 1990s, we developed a rudimentary financial plan that's still working today. Patty is now in her mid-nineties and does not worry about market...
Here are seven deadly sins to avoid as markets pirouette uncontrollably.
- Panic. If you panic and sell your stocks, you could permanently damage your long-term financial goals.
- Financial Plan. A financial plan provides benchmarks, goals, and targets to keep you focused on your future. If you don...
When will the market recover? When will inflation fall? Will interest continue to rise? These are the three questions clients ask about the current state of the economy. These are reasonable questions, but I don't have any idea. I do have, however, 100 years of data to support my thesis that stocks...
Cash is a beneficiary when stocks fall, as investors look for peace in large cash balances, especially in a bear market.
The one-month US Treasury Bill is a proxy for cash and is considered the safest investment in the world. It currently yields 2.8%, close to its 96-year average annual return...
In 2015, I ran the San Diego Rock ‘n’ Roll Marathon. I turned 50, and my goal was to finish the marathon in 3 hours and 15 minutes. I was on pace for the first 23 miles, but the next few miles required a significant hill climb to the finish line. It was soul-crushing, and I did not hit my target...
The first rule for surviving a stock market crash is not to panic, and the second is not to sell on the day of the correction. Markets typically rebound after a sharp sell-off as investors hunt for bargains, so wait before liquidating your portfolio. For example, two days after the 1987 crash, the S...
Investors are limping into the fourth quarter battered and bruised from a bumpy market as stocks and bonds continue to trade lower on inflation fears and rising interest rates. Regardless of the chaos, there is still time to make smart year-end moves to shore up your finances.
Buy Stocks. Buy...
I recently read a post where an advisor said investing is easy, and he recommended buying two or three index funds and holding them forever. While I agree with his thesis, investing is challenging because it requires emotional fortitude, and that's where we fail. To create generational wealth, you...
Stocks, bonds, and Bitcoin are down sharply this year as inflation and interest rates soar. The Federal Reserve continues to raise short-term interest rates to try and combat inflation, and, as a result, cash is an alternative to stocks and other growth-oriented assets. Why is it time to buy T-Bills...
In hindsight, I should have sold all my stocks in January to avoid massive losses in my account. I could have traveled the world, bought a vacation home, or retired with the money I've lost in the market this year. It seems obvious now that stocks are down because interest rates are rising...