A 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”
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”
We need to get out of debt… and get better at recycling. Continue reading “Market Monday #7: Gross Domestic Plastic”
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”
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”
The Young Entrepreneur’s Guide is an excellent resource for anyone thinking about starting a business or trying to improve their small business. Whether you are trying to expand your side hustle, invent a new product, or launch a start-up, Steve Mariotti covers everything you need to know. Continue reading “Book Review: The Young Entrepreneur’s Guide”
Many people I talk to want to do a better job of saving for retirement but don’t know where to begin. Maybe their employer offers a 401(k), but they don’t feel like it’s enough, or maybe they have no 401(k) at all and desperately need to get something started.
Many people also don’t have much money to get started with. They might want to start investing as little as $20 per month. The fee structures of mutual funds and the transaction fees brokers have for purchasing securities can make investing small amounts of money at a time very impractical, but that aspect of the investment industry is changing, and there are some new opportunities for small-time investing that weren’t there only a few years ago. Continue reading “How to Start a Retirement Fund with Almost No Money”