When buying a home, you probably know a lot of the potential risks such as the risk your home will go down in value over time or the risk that your home will require a lot of maintenance after purchase. In the same way, knowledgeable investors are aware that investing in the capital markets presents any number of risks – interest-rate risk, company risk, and market risk. Risk is […]
Learning from Biases and How They Affect Our Financial Choices
“Men willingly believe what they wish.” – Julius Caesar The Roman Emperor Julius Caesar was alluding to bias, which happens when individuals process information around them and then stick to their preconceived ideas. Bias can happen in financial matters too, and even the most seasoned investors are subject to them. When dealing with emotions, investors are [...]
Bundle Up? Not When It Comes To Financial Services
For many people subscribing to satellite services or cable television over the last couple of decades, the business model has been “bundling services” like television, Internet and phone together for a single rate. However, in this system, many customers are paying for TV channels that they never watch or for a landline that they rarely use. With the increased popularity of “cutting the cord” to cable and satellite TV in order to watch TV series and films on Over-The-Top (OTT) content devices, there have been calls, even from Washington, for a “pay for what you watch” or “a la carte” approach. Continue Reading …
Should You Follow Market Forecasters?
USA Today recently published an interesting article titled “How bad are Wall Street forecasts? Really bad.” The article reviews why you are probably better off ignoring financial advisors who try to predict the market. Not only is their combined track record horrible over time, you may get better results by simply tossing a coin – […]
A Fun Article About How to Invest Your Lottery Winnings
In case you were one of the lucky few who won last week’s $577 million Powerball lottery, you can find our recommendations on how to invest your winnings at the Wall Street Journal’s MarketWatch site. The title of the article is “Fiscal Cliff May Clip Powerball Winner“.
Retro Investing Article from WSJ
The Wall Street Journal recently published a very timely article about the current investment climate. Here’s the link in case you missed it: “Retro Investing – Look Back to Get Ahead.” As the title implies, the author suggests that history can offer important lessons to help us chart an investment path forward. I agree. In […]
