If I’m seeing my ideas repeated, does that mean that people are copying me? Or does that mean that a lot of analysts are seeing the same thing? I figure the latter. Here are some highlights of the echo chamber that I hear right now: The market is overvalued The market is at it’s highest,… Read More »
Warren Buffett and Charlie Munger have famously said that you should not diversify. They have also said that diversification should be called di-worse-ification. Other people have said they didn’t mean it. Well, they kind of did. The Right Way To Think Of Diversification You should diversify to prevent “actual loss” rather than “market loss”. Actual… Read More »
I have mentioned that you probably want to save cash now because the stock market to GDP is at its highest point, basically ever. It’s scary high. But here are the facts you need to know. You do not need to sell your existing stock holdings I believe there is time before a big decline… Read More »
Our stock market as a whole is overvalued. Some individual stocks are undervalued but the market as a whole is overvalued. And guess what happens when the market gets overvalued? It deflates, i.e. goes down. It may not do it right away, it may take years, but it does decline. Now you’re looking at the… Read More »
Let’s say you just got your first full time job, maybe just out of high school or college. Your first savings should probably be in a savings account or money market. Pick an amount such as $20/week and start saving. Don’t worry too much about your gains as this should be ready cash for when… Read More »
Covid. The Election transition. Christmas. The market sure hates uncertainty, and the virus is getting worse. It will probably continue until we have a good vaccine in enough volume. The election transition looks like it’ll play out until January 20. Hopefully not. With the downturn this year, Christmas shopping season is less than certain. And… Read More »
Anybody can invest in the stock market, yes. But should any given person? There are traps to watch out for. If you are in it to get rich quick, you will likely lose. Why? Because you probably won’t build up an emergency fund first. You’ll put a chunk of money in your brokerage account. Invest… Read More »
There are times when you have money and times when you don’t. Sometimes you have actual cash, perhaps in the bank, but shouldn’t spend it. Sometimes you have excess cash that you should do something with. In this article I am going to discuss cash management issues that could pop up that you may want… Read More »
Have you ever heard the saying “A penny saved is a penny earned” (Cambridge Dictionary)? If you put money into a tax-free investment that made 22.99% and was risk free, it is the same as taking that money and paying extra to your credit card that charges 22.99% APY. Check this out: 22.99% is the… Read More »
I want to seriously warn you that you should have an emergency fund. The last thing you want to have to do is raid your stock portfolio because you lost your job or need an expensive repair. Note though that so many things could be defined as an emergency. So maybe we should define what… Read More »