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In order to become a good-enough investor, it’s worth doing a post-mortem analysis of your investment calls. Constantly reviewing what we got wrong and what we got right is important for improvement. We must not confuse any investment outcome with improper reasoning. If we do, we will suffer from Dunning-Kruger, which could lead to deleterious […]
Post-Mortem Analysis Of A Bullish Investment Thesis Read More »
You don’t need to be a great investor to make lots of money. You just need to be a good-enough investor. Once you’re good enough you’ll be able to ride an almost constant tailwind toward financial independence. Further, you’ll learn to no longer blow yourself up and lose all your progress. One of my favorite
How To Become A Good-Enough Investor: Investing Lessons Since 1996 Read More »
Something crazy just happened. FTX, formerly the second-largest cryptocurrency exchange, collapsed overnight. It went from a valuation of around $16 billion to a negative valuation due to a liquidity crunch and debt. How did this happen? FTT, a crypto coin that the FTX exchange issued, plummeted in value because Binance, the largest cryptocurrency exchange, said
The FTX Crypto Exchange Collapse: Lessons We Should Learn Read More »
In a bear market, it’s hard to find bullish economic indicators. We’re always searching for silver linings to live better during difficult times. Thus, the good news is that I’ve found the most positive economic indicator yet! This week, the Treasury Department announced Series I Bonds will pay an annualized interest from November 1, 2022 through
The Most Bullish Economic Indicator Yet: A Lower I Bond Rate Read More »
The high-yield corporate bond spread is an important stock market indicator. The larger the spread, the greater the concern high-yield corporate bond investors have about the stock market and vice versa. The high-yield corporate bond spread is the difference between the yield of the bonds issued by riskier companies and risk-free Treasury yields. The spread
High-Yield Corporate Bond Spread: A Good Stock Market Indicator Read More »
Although going through another bear market is a bummer, the positive is we can all generate more passive income! And given we can now generate more passive income we can also get that much closer to financial freedom. As a reminder, financial freedom means having enough passive income to cover your desired living expenses. When
It’s Easier To Generate More Passive Income In A Bear Market Read More »
Since 2009, one of the things I have focused on is trying to help readers have a risk-appropriate asset allocation. A risk-appropriate investor invests according to their true risk tolerance. When you invest according to your true risk tolerance, you usually become a calmer, wealthier person. Over the long run, your investment asset allocation is
How To Have A Risk-Appropriate Asset Allocation When Investing Read More »
Let’s say you’ve currently got a good amount of cash to invest. With the global financial recession building, opportunities are piling up. However, things could get worse in this bear market given we’re only nine months in. How would you invest it? 2022 has so far been a terrible year for both stocks and bonds.
How I’d Invest $250,000 Cash In Today’s Bear Market Read More »
With the Federal Reserve determined to hike rates to 4.5%, another global financial crisis might be brewing. The Board Of Governors are all very rich, so they’ll be OK. However, a world of hurt could be coming for the middle class. Thankfully, balance sheets are stronger this time around. Many of us have also diversified
Personal Lessons Learned Since The 2008 – 2009 Global Financial Crisis Read More »
One of the main reasons why I wrote Buy This, Not That was to help readers feel less regret by making wiser choices. Regret is one of the worst feelings, especially if it is a type of regret that could have been prevented through knowledge. The easiest way to stop saying, “If I knew then
Conduct A Regret Minimization Exercise To Help You Move Forward Read More »
Market timing is the strategy of making buying or selling decisions of financial assets by attempting to predict future market price movements. By timing the market, the hope is to make an eventual profitable decision. Market timing gets a bad rap partially because it’s difficult to do consistently to profit. However, I mostly believe the
Why Market Timing Real Estate Is Easier Than Timing Stocks Read More »
You might be wondering why rich central bankers remain unrelenting in their desire to raise interest rates. After all, there are plenty of signs individual components of inflation are rolling over. Given each interest rate hike takes at least six months to have an affect on slowing the economy, the Federal Reserve could easily over
Understand How Rich Central Bankers Think So You Can Outperform Read More »
With heightened stock market volatility, more investors are looking for ways to hedge their portfolios or find some way to outperform the broader indices. Therefore, I thought it would be a good idea to interview Ananda Aisola, the co-founder of Composer, a new investment platform. For 13 years I worked in the equities department at
Composer: An Investment Platform For The Future Read More »
One of my goals after entering the decumulation phase is to give more to charity. And one of the best ways to give to charity is through a donor-advised fund. All my wealthy friends have set up donor-advised funds, so it was about time I do the same. The following guest post about donor-advised funds
Donor-Advised Funds: The Most Tax-Efficient Way To Give To Charity Read More »
Although about 30% of my public equity portfolio is invested in individual stocks, I don’t recommend the average non-obsessed person invest more than 10% of their portfolio in individual stocks. The main reason why is because it is hard to outperform the various indices over the long term. Although there are no fees for owning
The Best Reasons Not To Own Individual Stocks Unless You’re Obsessed Read More »
The investing information provided on this page is for educational purposes only. NerdWallet does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments. Despite its name, the Inflation Reduction Act is largely a climate spending bill. If passed, it would represent the…
What the Inflation Reduction Act Means for Green Energy Stocks Read More »
From the guy who told you to buy heartland real estate in 2016, I’ve got another long-term investment idea I think you should consider. Investing in rare books and various types of memorabilia with autographs. Not only can investing in collectibles be lucrative, but it’s also a ton of fun as well. For example, I
The Next Big Investment: Rare Books And Memorabilia With Autographs Read More »
Non-fungible tokens (NFTs) are the wild west of digital currency. There’s plenty of money to be made – and plenty of ways to lose it. Knowing the difference between the two isn’t always obvious. One thing to look out for when investing in NFTs or other forms of digital currency is the possibility of getting
Common NFT Scams to Watch Out For Read More »
Everybody wants to be considered wealthy. But how big of a net worth is required to be considered wealthy in some of the biggest cities in America? Charles Schwab’s annual Modern Wealth Survey shares its insights for 2022. In the U.S. overall, the survey says it takes a net worth of $2.2 million to be
Net Worth Required To Be Considered Wealthy In Various Cities Read More »
Cryptocurrency Definition Cryptocurrency, aka crypto, is a digital currency that doesn’t rely on any bank or government, meaning it’s decentralized. These currencies run on a blockchain, a decentralized public ledger that keeps a secure record of crypto transactions. Whether you’ve heard about people using crypto to buy their groceries at Whole Foods or their coffee
What Is Cryptocurrency + How Does Cryptocurrency Work? Read More »