Book Review: Save, Spend, Invest, Give

Save Spend Invest GiveIn Save, Spend, Invest, Give, Daniel Pecaut shares his expertise on personal finance as the CEO of an investment firm for over 30 years. Pecaut is a value investor inspired by value gurus like Warren Buffett and John Templeton. However, this is not so much a value investing guide as it is an inspirational personal finance guide. Continue reading “Book Review: Save, Spend, Invest, Give”

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Book Review: A History of the US in 5 Crashes

history of us in 5 crashesA History of the United States in Five Crashes¬†describes the 1907, 1929, 1987, 2008, and 2010 stock market crashes. Scott Nations’ thesis is that crashes tend to follow a pattern where some new financial construct causes investors to let their guard down. The false sense of security allows for a rapid market run, then some event triggers it to come crashing back down. The introduction of algorithms and computer-directed trading has also sped up this process and created new vulnerabilities in the market. Continue reading “Book Review: A History of the US in 5 Crashes”

Finance Friday #7: Retail Revolution

It has been a newsworthy week in both politics and markets. To me, politics is usually of little significance, as are the daily market swings surrounding them. Over time, the market goes up, despite politicians’ attempts to get in the way. Politicians are gnats that responsible people have to swat at, but in the long run that is the extent of their impact. Good finance is all about having a long-term view that finds value and manages risk. Continue reading “Finance Friday #7: Retail Revolution”

Finance Friday #6: Breakups

Eur breaking up with me?!

Maybe I’m too much of an optimist, but I’m not too worried about a Euro breakup, a Trump trade war, North Korea, etc. Geopolitical conflicts have gone on for a long time. The market is notorious for overreacting to geopolitical news when it comes to stock prices in the short term, but eventually corporations and their investors still earn their money in the end. Continue reading “Finance Friday #6: Breakups”

Market Monday #6: Comparative Advantage

It is Memorial Day, and we are celebrating our freedom by bragging about the economy, putting immigrants in “detention centers” reminiscent of WW2 concentration camps, and punching drunk women on the Jersey shore. We need to realize the value of our fellow human beings, whether they be soldiers, immigrants, or even drunk women on the beach. Let’s stop blaming each other and hurting each other. Empathy is better for morality, but it is also better for the economy. Continue reading “Market Monday #6: Comparative Advantage”