Weekly Mixtape For August 2nd, 2020

Week In Review Articles

The WSJ: U.S. Economy Contracted at Record Rate Last Quarter; Jobless Claims Rise to 1.43 Million

The WSJ: U.S. Consumer Sentiment Deteriorates in July As Covid-19 Cases Rise

CNBC: Fed Holds Rates Steady, Says Economic Growth Is ‘Well Below’ Pre-Pandemic Level

The WSJ: Stocks Close Higher Amid Rally in Tech Shares

The WSJ: Gold Prices Hit Record as Dollar Drops

The WSJ: The Small-Business Survival Guide


Weekly Mixtape

Lazetta Rainey Braxton: Parents Need To Use Real Life Lessons To Teach Kids About Money “By providing good money habits at an early age, you as parents are setting them up for a happy life of financial freedom as they grow, and it teaches them the importance of earning what they have.”

Melissa Joy: 5 Predictions for Our Post-Coronavirus Future “Your life and investment lessons likely do not need to be scrapped. History does not repeat itself, but it rhymes. So, manage your emotions, bide your time, take care of yourself, and look forward to your future!”

Morgan Housel: The Ugly Scramble “Risk depends on how hasty your response must be. A small problem you have to scramble to protect yourself from with a snap judgement can be more dangerous than a larger problem you have time to deal with.”

The Reformed Broker: It’s Almost As If Stock Prices Anticipate The Future “Skepticism and contrarianism are an important part of every investor’s psychological balance. Without that balance, ruin is sure to follow. But kneejerk contrarianism rarely rewards anyone, regardless of the panache and flair with which it is written.”

The Irrelevant Investor: It’s Either Sadness Or Euphoria “Sentiment is a tricky thing to glean insight from, especially when it’s in survey form. I’m much more interested in what people do versus what they say. That said, if I was looking for some market signal, and I’m not, but if I was, I’d be more curious to see what the old people are saying than the young ones.”

A Wealth Of Common Sense: The Battle Of The Bubbles “I don’t know when we’ll get there (some people think it’s already here) but when people begin handing over their money without discerning between legitimate investments and speculative schemes, that’s when things get out of control.”

Meghaan Lurtz: Self-Care And Self-Compassion In Times Of Financial Stress And Anxiety “In other words, even if a client understands that the loss may be ‘temporary’, this will not necessarily shield them from feeling a wide range of emotional stresses and anxieties in the moment that are associated with the loss of the important goals, achievements, and possibilities that the money stood for in the first place (e.g., hard work, freedom, competence, retirement, college, or any other financial goal or financially based, self-image imaginable), especially when those losses feel ‘unfairly’ inflicted upon them and are beyond their control.”

Ashby Daniels: Quick Thought On The National Debt “Let’s not lose sight of the fact that while our national debt has grown, our national output has grown in a very similar fashion and the long-term effects of this debt increase are yet to be determined. I do believe something needs to be done eventually, but to this point, there haven’t been nearly the ill effects that people have been predicting for decades now.”

Your Brain On Stocks: A Newfound Appreciation For Risk ” In a perfect world, every financial plan would require no more investment risk than its owner is capable of bearing. Short of that, it’s better to invest in a lower risk portfolio you can handle than it is to invest in a high risk portfolio you’re constantly spooked out of.”

Barry Ritholtz: CARES Act 2: The Line Between Rich & Poor In America “Again, so much of what makes one rich or poor is tied up in perception. We regularly misperceive other people’s wealth. We see our neighbors’ spending — big house, fancy car, expensive vacations — but not the other side of the ledger showing debts and net worth. We imagine paying high unemployment insurance or stimulus checks will discourage working.”

Thomas Kopelman: Breaking Down The Term ‘Financial Advisor’ “Do your research to understand the different types of advisors that exist and then just start interviewing them to find one that best fits your needs. There are going to be conflicts in all models, but what is important is that you are aware of them and find an advisor that you trust.”

All About Your Benjamins: Breaking Down The Long Game: Low-Hanging Financial Fruit For Young Professionals

Disclaimer: Nothing on this blog should be considered advice, or recommendations. If you have questions pertaining to your individual situation you should consult your financial advisor. For all of the disclaimers, please see my disclaimers page.

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