Investing

Looking at today’s financial markets, “risk-free rate” is one of the easiest, most observable aspects to watch above the waterline.

There’s a reason recent Retire With Purpose podcast guest, Jeremy Siegel, has been called “one of the best stock watchers alive”. His long-term investing mentality means it all comes down to “time horizon when investing your money”.

As author Morgan Housel says, “The most important investing question is not, ‘What are the highest returns I can earn?’” Instead, “It’s, ‘What are the best returns I can sustain for the longest period of time?’”

In the world of investing, loss aversion is a cognitive bias which means your losses hurt twice as bad as any gains of the same value. It can be one of the most common (and challenging) hindrances to overcome in making sound investment decisions, and might also cause you to develop a case of “Get Even-itis”.

According to the 1950-era modern portfolio theory, volatility is the most appropriate measure for portfolio risk. It draws down to utilizing the statistical concept of standard deviation; but while this makes the metric mathematically simple and easy to estimate, it also carries some disadvantages.

It’s not just you, today’s economic landscape feels chaotic for many. While news headlines certainly heighten the fear, the reality is, numerous investors are experiencing major losses, and it all draws back two years ago.

Market activity has been rough, but investors have been braced for impact for months. Economic confidence is at an all-time low and many believe we are heading straight toward a recession (or, might even already be in one).

Financial blogger Ben Carlson always poses interesting points when it comes to navigating smart investment moves in today’s world. Here, you’ll find a list of questions worth considering in the midst of market volatility, plus a few light-hearted thoughts thrown in for fun.

When it comes to investing, you might have heard it’s best to separate your emotions from your financial decisions; however, doing so causes you to eliminate your life’s worth of wisdom.

For the first time since August 2019, the U.S. economy saw a yield curve inversion. This means the interest rate paid on our short-term debt exceeded the paid interest rate on long-term debt of the same quality.

When it comes to long-term investing, my good friend and author of this article, Joel Johnson, says it best: “… Slow and steady will win the race.”

When it comes to successful investing, Jack Bogle once advised, “Don’t do something; just stand there”, and he makes a fair point.