The Financial Fitness Cliff
There’s something about the beginning of a new year that prompts us to reflect on the past and think about the possibilities of the year
January 20, 2021
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There’s something about the beginning of a new year that prompts us to reflect on the past and think about the possibilities of the year
On September 2, 2020, the Dow Jones Industrial Average hit an all-time high of 29,100. As this is being written, the DJIA is only about 2% below that high-water mark. Let that percolate in your consciousness for a minute.
Investors can give many different answers to the question of why they put their money at risk in the capital markets, but it can be boiled down to just two: We invest to either grow our capital so that we may spend (or gift) it in the future or to produce current income to help support our lifestyle. These two goals have historically suggested two different investment strategies: investing for long-term growth (stocks) or investing for income (bonds). In this month’s blog, we will discuss a third approach, total return investing. Before doing so
The Drunken Sommelier came up with 14 Things Every Wine Student Should Know after reading a list in a wine article published by GQ Magazine. Paul Strid read The Drunken Sommelier’s list and he
We humans hate uncertainty. Deep down, we want to know how things are going to turn out. We day-dream about winning the lottery, having the perfect job, enjoying the perfect vacation (with selfies to prove it), buying the perfect house, getting the perfect exam score. But, because we really can’t control the future, we also worry: will I ever meet the perfect spouse? Will the exam results be negative? Will my children live happy lives? Will there ever be world peace? Once and for all, is drinking coffee (or eating eggs) truly good for us?
Investors are right to keep a close eye on what the Federal Reserve is doing. As the central bank of the United States, it is charged with the responsibility of implementing monetary policy. Monetary policy has a powerful impact on the economy and capital markets.
Remember the 1850s through 1900, when people travelled west to California, then ultimately to the Klondike to search for gold and strike it rich? Very few of them ended up finding enough gold to make any money. Most of them went bust and had a pretty rough time. This is kind of what is happening right now with cryptocurrencies, and blockchain in particular. There’s a lot of confusion, and there is money to be made, but very carefully. So, let’s break it down a bit.
Life is full of issues. We worry about our health, family, the economy, the weather, politicians, the government, and so on. I want to look at five issues that successful investors have when it comes to their wealth.
Jim Ryun was going for the gold in the metric mile at the 1972 Munich Olympics. In his semifinal race, he got tripped up and fell with about two laps to go. He got up and ran valiantly, but he could not catch the leaders and didn’t make the final. He just didn’t have enough time to make up the difference and ultimately didn’t get a shot at the gold.
Amazon founder Jeff Bezos was once asked, “What do you think is going to change in the future?” His response was that change wasn’t what to focus on. Instead, he said, “Ask yourself, ‘What’s likely to stay the same?’”
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