Weekly Mixtape For January 19th, 2020

Week In Review Articles

People are weird about money.

There are lots of examples of this; we all have countless anecdotes to muster.

But its more than mere anecdote: the entire field of Behavioral Finance backs it up. (More on this later)

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— Barry Ritholtz (@ritholtz) January 18, 2020

Weekly Mixtape

Morgan Housel: Risk Is What You Don’t See “Two things happen when you’re caught off guard. One is that you’re vulnerable, with no protection against what you hadn’t considered. The other is that surprise shakes your beliefs in a way that leaves you paranoid and pessimistic.”

The Irrelevant Investor: Is This As Good As It Gets For the Stock Market? “What I absolutely am saying is that if you’re saving investing for retirement, you shouldn’t be making changes to a portfolio that you don’t plan to use for another few decades based on feelings.”

Calibrating Capital: A Barometer Of Busyness “My point is to introduce an idea of measuring the busyness in your life, to do a bit of a self-audit to see if the things you care about are truly being cared for, to make sure that in the wake of our hard drive towards growth, that the waves aren’t pulling other things underwater.”

A Wealth Of Common Sense: Updating My Favorite Performance Chart For 2019 “This tells us diversification is not dead by a long shot but it also shows how many opportunities investors have to be either really right or really wrong if they go to the extremes in any one asset class or region.”

Of Dollars And Data: The Investor’s Fallacy “Because of this interdependence of market returns, it is easy for investors to convince themselves that markets can be due for good or bad years. And with the stellar performance in U.S. markets over the previous decade, it feels like a correction is warranted. However, if you examine the data you will realize that this thinking is just as flawed as the person expecting a tails after seeing five heads in a row. There is little to no relationship between prior 10-year returns and growth over the next 10 years.’

Douglas Boneparth: Bump Set Spike “In our lives, we can build the strongest foundations and design the best of plans, but if we can’t execute on our goals, we are likely to go nowhere instead of where we want to be.”

Rad Reads: How To Avoid Shiny New Toy Syndrome

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