Category: Education


A Guide to Moving from Cash to Investments

This is a story many of you will be familiar with. You have money to invest that’s been sitting in cash, either from the sale of a business, a recent inheritance, or built-up savings. This is money you don’t expect to need or access for more than 20 years, if ever. You know that cash […]

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The Price of Admission

When investors think about risk, 2008 is usually the first thing that comes to mind. And for good reason. It was the worst year that most investors alive today have ever experienced. With dividends included, the S&P 500 lost 37% in 2008, its largest decline since 1931 (during the Great Depression). Since the end of […]

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Tomorrow’s News Today

There was a time long, long ago when Federal Reserve meeting announcements would come a surprise to market participants. They might cut rates. They might hike rates. You just didn’t know. That has all changed. Since June 2009, there have been 91 FOMC Meetings… Before 79 of those meetings, the market was pricing no change […]

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Bitcoin, Bubbles, and Belief

The is a story about belief. But first, let’s do a little time traveling… 1) It’s July 2010. Bitcoin is trading at 5 cents. What’s a Bitcoin? 2) It’s February 2011. Bitcoin is trading at $1.10, a 2,100% increase in 7 months. This is what the chart looks like… What’s the first word that comes […]

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Welcome to the Compound Book Club

“A reader lives thousand lives before he dies. The man who never reads lives only one.” – George R.R. Martin A few years ago I started a book club with a few friends in town. Each month we gather to discuss a different book, but the conversations always meander between books, work, family, parenting, and […]

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Everything’s Gonna Be Alright

It’s election night and many are worried about the future. Only adding to anxieties is the fact that both sides have painted a bleak picture of what America will look like if the other wins. I’m here to tell you they’re wrong. Life will go on, and things will get better. The election that seems […]

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Great Expectations

“Ask no questions, and you’ll be told no lies.” – Charles Dickens, Great Expectations What returns are you expecting from equities going forward? “At least 20% a year.” That was a conversation I had last week with an investor. It gives you an idea where we are in terms of sentiment. How did they arrive […]

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Put These Charts on Your Wall … 2020 Edition

Put these charts on your wall for reference the next time you think… Stocks can’t go up during a recession… It’s “oversold” or “at support” and has to bounce… It’s “overbought” or “at resistance” and can‘t possibly go higher… Investors are rational and would never pay $239.50 for something worth $22.83… It can’t go below $0… Interest rates can’t go […]

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Are Investors Rational?

Would you pay someone $205 for an asset worth only $21.87? Of course not; what a ridiculous question. And yet, investors in the Ethereum Trust ($ETHE) are doing just that, paying a stunning 837% premium above the net asset value (NAV) of the underlying holdings (Ethereum, a cryptocurrency). Why would anyone do such an irrational […]

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Dazed and Confused

If the dichotomy between markets and the economy has left you dazed and confused, you’re not alone. For on one side of the ledger, you have… 16.5% of the US labor force on unemployment, the highest on record (data back to 1967). US Employment to Population Ratio down to 51.3%, a new low. The prior […]

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When All News Is Bad News

The Volatility Index (VIX), also known as the “fear index,” ended today at 82.69. Since its inception in 1990 it has never had a higher close. When was the previous record? November 20, 2008. In the midst of the Global Financial Crisis, after the Lehman Bankruptcy, and 11 months into the worst recession since the […]

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How to Think About Investing Cash on the Sidelines

This is a story many of you will be familiar with. You have money to invest that’s been sitting in cash. This is money you don’t expect to need or access for more than 20 years, if ever. You know that cash is likely to significantly underperform a diversified investment portfolio over the next 20+ […]

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The Price of Admission

When investors think about risk, 2008 is usually the first thing that comes to mind. And for good reason. It was the worst year that most investors alive today have ever experienced. With dividends included, the S&P 500 lost 37% in 2008, its largest decline since 1931 (during the Great Depression). Since the end of […]

Read more