SBV Curated Content | A Weekly Update of Enlightening & Intriguing Information | March 31, 2021
Businesses, Stock Markets & the Economy
Four Things Everyone Needs to Know About the Markets (Ben Carlson)
Excerpt-> 4. Markets are constantly changing.
“The United States made up just 15% of global equity markets in 1900. Now look at it — like Pac Man eating the rest of the world.
Britain’s share has shrunk by a factor of six. Germany and France have seen similar slippage. Then you have countries like Japan and China that weren’t even on the pie chart in 1900 but now have the second and third largest market share.
Now look at the sector changes:”
Your Finances & other Wealth Management links
How to Prepare for the Impact of Restricted Stock Units on Your Cash Flow, Tax Bill, and Investment Portfolio (Daniel Zajac, CFP®, AIF®, CLU®)
“While you may not need to make as many decisions as you would with other types of equity compensation, there are still two key reasons why you need to pay attention to your vesting RSUs:
- The automatic withholding on your RSUs may not be high enough to cover your total tax bill.
- Vesting and settlement of your RSUs may result in you receiving shares of stock, which could introduce more concentration or volatility into your overall investment portfolio than you truly want.”
Illustrating the Power of Compound Interest (Jason Zweig, The Wall Street Journal)
|Q:||I have two girls, 8 and 10. I want them to see how compound [interest] is in fact the eighth wonder of the world, as one of your precocious readers stated.
How do I get them started without overwhelming them and making this about me? I want it to be fun for them to learn and at their own pace. —Amar Rama
I can’t believe a guy whose name is a palindrome is asking me for advice on how to make learning fun, but OK, I’ll try.
1. Get a chessboard.
You’ll explain to each, of course, that you’ve just demonstrated the power of compound interest at a 100% rate, which is too high to last for long in the real world, not even if you are Elon Musk or Satoshi Nakamoto. They will be able to see that sustaining the compounding, even at the much lower rates that prevail in the real world, is the key to massive growth over time. Have them show you how the piles of rice on the chessboard would grow at, say, 10% and at mundane, but realistic, single-digit compounding rates.
When you’re done, rinse the rice and make it into a tasty pilaf or pilau or paella. Then, as a family, savor a lesson well-taught and well-learned.”
The Environment & ESG (Environmental, Social & Governance) Investing
Interactive-> In the Atlantic Ocean, Subtle Shifts Hint at Dramatic Dangers. “The warming atmosphere is causing an arm of the powerful Gulf Stream to weaken, some scientists fear.” (The New York Times)
COVID-19 & Your Health
What the science says about 7 common COVID-19 vaccine myths. “No, the vaccine development process didn’t cut corners, even though it happened in record time.” (Fast Company)
Your Physical & Mental Well-being
A Simple Compliment Can Make a Big Difference (Harvard Business Review)
This Week’s Serendipity
Watch: A three-minute video about garbage collectors in Turkey who have built a fully-functioning library out of books they’ve found in the trash. (CBC News)