Another week in quarantine so Michal and I continue to record Animal Spirits from the comfort of home. We discuss: Why the end of this crisis will only look obvious in hindsight How long until people start losing their patience? Why fiscal stimulus is so important right now The U.S. response to this...
Frederick Lewis Allen wrote the definitive book on the 1920s called Only Yesterday: An Informal History of the 1920s. The book was published in 1931 and discusses one of the most transformational decades in modern history. It’s a wonderful companion piece to any of the hundreds of books written about...
Diversification is vital to long-term investing success, but it doesn’t guarantee stable returns year in and year out. Diversification can only go so far. The perfect scenario, of course, would be knowing beforehand the future returns on available investments. In that event, the logical thing to do would be...
This can be a scary time for those who have never lived through a market crash. But young people and those still in the accumulation phase will eventually come to realize that lower prices are a good thing for new savings. For those approaching retirement or already in retirement...
Q. Could you address how to rebalance IRA accounts in one of your articles? I believe this should be done yearly, correct? If not, could you point me towards some articles/resources? A. I thought it might be a good time to discuss a few things about rebalancing such as the why,...
Through the close of business last Friday a globally diversified basket of stocks is down roughly 31%. 2020 has not been kind to investors but most investors don’t have all of their money in the stock market. Here are the year-to-date returns for a number of different asset allocations using...
Tax-loss harvesting is all the rage these days. I’ve done it several times since the start of this bear market and booked hundreds of thousands of dollars in tax losses. However, there are a few reasons why you may not want to do it. Before I get into...
This week’s Animal Spirits with Michael & Ben is supported by YCharts: Mention Animal Spirits and receive 20% off your subscription price when you initially sign up for the service. We discuss: When chasing yield goes bad Worries about the credit markets Why this period gives me more anxiety than 2008 Is work from home here to...
I’ve been writing a lot about the markets lately. This feels like some combination of WWII, 1987, 2008 and 1929 all wrapped up in one so there’s been no shortage of topics. I write to provide context and hopefully help people make better decisions with their money but I also write...
Some random thoughts as we get a couple of days off from paying attention to the markets: Will the winner-takes-all only get worse from here? One of the big worries before the current crisis hit, which seems rather trivial at the moment, is the growing concentration at the top...