Sale! Sale! Sale!

We’ve discussed the power of time here before—how it’s your most valuable asset, how it’s slowly diminishing, etc.—but I realize it can still be a hard concept to grasp. Our brains are not wired for long-term thinking. After all, our ancestors probably weren’t thinking much about what they would do in “retirement” when they were focused on catching Continue Reading

Price Check

The other week I took my car to the dealer for its 50,000 service –oil and filter change, tire rotation, brake adjustment and 19 point inspection. I paid $90 and patiently sat in the waiting area wondering what problem the service guy would present to me that day. It was time for new tires ($566)! I would need a four wheel alignment ($100) to go Continue Reading

Revisiting Eight Principles to Focus On

Without looking, see if you can answer the following question: What is the year-to-date return on the S&P 500? -18.95% -12.37% -5.44% +0.15% Pat yourself on the back if you answered number four. That’s right—the S&P 500 is actually positive for the year after being down over 10% through the first six weeks of the year. Since Continue Reading

Why doesn’t my portfolio always go up when the market does?

This is a question I receive from time to time, especially when the S&P 500 has been one of the best performing asset classes as it has been recently. My first response is always to question why we’re looking at daily returns (repeat with me: daily returns are random, daily returns are irrelevant, daily returns are random, daily returns are Continue Reading

Eight Principles to Focus On (instead of meaningless market headlines)

In times of significant market declines, it’s good to step back and remember a few key principles. This is normal Over the past century, U.S. stock markets have experienced a drop of 10% about once per year on average. They experienced a drop of 20% about every three and a half years. Despite this, they have produced annualized returns near 10% Continue Reading