Businesses, Stock Markets & the Economy Staying Put (Morgan Housel) “The first rule of compounding is to never interrupt it unnecessarily.” - Munger Save Like A Pessimist, Invest Like An Optimist (Morgan Housel) “As long as more people try to get better than screw up, the long-term odds are in an economy’s favor. And that’s virtually always the case because the screw-ups – the declines, the recessions, and panics, the wars – fuel the problem-solving. Once the...

Capital markets are often confounding, especially if we examine just a brief three-month period. It is tricky for investors and markets alike to sort out what qualifies as “good” or “bad” news from one moment to the next. Should we worry about Russia’s invasion of Ukraine? Supply-chain effects from the Covid lockdown? Tightening by the Federal Reserve? Rising inflation? Headlines like these translate into the volatile markets we’ve seen so...

Businesses, Stock Markets & the Economy What the Labor Market Means For the Stock Market (Ben Carlson) “I know everyone hates inflation and I get why that’s the case. But it feels like people who are down on the economy because inflation is so high are missing the fact that the labor market is on fire. The unemployment rate is basically back to pre-pandemic levels…” Safer, Yet More Afraid Than Ever (Collaborative Fund) “The fact is,...

Businesses, Stock Markets & the Economy What a Federal Reserve Rate Increase Means for You. “Rates on credit cards, savings accounts and different kinds of loans move when the Fed changes its benchmark rate. Here’s what you need to know.” (The New York Times) Panic Selling Quantified (Barry Ritholtz) “Nearly a third of investors who panic sell never buy equities again. My experience is that many panic-sellers repurchase equities at higher prices than they...

Businesses, Stock Markets & the Economy Some Thoughts on Bear Markets (Ben Carlson) Ben's thoughts on Bear markets include: “Staring at prices all day won’t make them stop going down.” “Bear markets are confusing.” “The people using this as an opportunity to scare you will never get you back in.” “Bear markets are buying opportunities.” “History provides context, not a crystal ball. “ “It’s been a while since we’ve had an...

Businesses, Stock Markets & the Economy Navigating Geopolitical Events (Dimensional) “Investors in global equity portfolios inevitably face periods of geopolitical tensions. Sometimes these events lead to restrictions, sanctions, and other types of market disruptions. We cannot predict when these events will occur or exactly what form they will take. However, we can plan for them by managing diversified portfolios and building flexibility into our process." "We previously reduced the weight of Russia in...

Businesses, Stock Markets & the Economy Ukraine and the changing market environment (Vanguard Perspective) “With geopolitical tensions such as the conflict between Russia and Ukraine, investors often ask whether a link exists between current events and financial market performance. However, when we examined major geopolitical events over the past 60 years, we found that while equity markets often reacted negatively to the initial news, geopolitical sell-offs were typically short-lived and returns over...

Businesses, Stock Markets & the Economy How Long Does it Take Tech Stocks to Recover From a Crash? (Ben Carlson) “But tech stocks are prone to these boom-bust cycles because innovation always causes bubbles. We simply can’t help ourselves.” 4 Reasons Inflation is So High Right Now (Ben Carlson) “Everyone is miserable about inflation but we can’t help but pay higher prices because if there’s one thing we do really well in this country…it’s consumption.” Navigating...

Businesses, Stock Markets & the Economy Will Inflation Hurt Stock Returns? Not Necessarily. (Dimensional) Your Finances & other Wealth Management links After the Fact (Morgan Housel) “… all wealth relies on the ability to receive an extra dollar and say, “I could spend this, and spending feels great, but I’m not going to.” It’s the same as turning down a big meal after working out, and it’s just as hard. All great things are...