Week In Review video returns next week! Camera difficulty prevented this week’s video.
Week In Review Articles
We are asking money to do things it’s not designed to do.
Money was not designed up to make you happy.
Money was not designed to give you security.
Money was designed to be a store of value and a medium of exchange…can we let it do that?
— Carl Richards (@behaviorgap) April 21, 2020
Morgan Housel: Why We’re Blind To Probability “Most people get that certainties are rare, and the best you can do is make decisions where the odds are in your favor. They understand you can be smart and end up wrong, or dumb and end up right, because that’s how luck and risk work. But almost no one actually uses probability in the real world, especially when judging others’ success.”
Morgan Housel: Permanent Assumptions “Realizing it’s not inconsistent to have no view about the future path of some things but unwavering views about the path of others is how you stay humble without giving up. And the good news when the world is a dark cloud of uncertainty is that those permanent assumptions tend to be what matter most over time.”
A Wealth Of Common Sense: Some Things About The Markets That Will Never Change “It’s easy to look back at what’s transpired this year and come up with perfectly logical reasons for the market’s manic behavior. And there are plenty of logical reasons for a market crash that immediately turned into a roaring bull market in the span of 3-4 months. But there are no counterfactuals. Things didn’t have to happen this way. Markets have shown this year how they can be equal parts resilient and fragile.”
The Reformed Broker: Ten Reasons The “Second Wave” Hasn’t Spooked The Markets (Yet) “It’s easy to scare investors. It’s harder to keep them scared. There’s a lot of regret from investors who sold toward the bottom as stocks recovered right in their faces just weeks later. There is an unwillingness to have the same thing happen again, to the same people, so the hesitance to swing back to cash on virus headlines is high. “
Jason Zweig: Playing the Market Has a Whole New Meaning “Yet, however crazy the stock market may seem, it isn’t really a casino. Play most games in most casinos long enough and you’re sure to lose. The stock market, on the other hand, tends to reward those the best who hold on the longest. Speculating has some entertainment value. You might learn something useful. There’s even a remote chance you’ll make money. But always know you’re speculating. Also know that you can lose your shirt.”
The Irrelevant Investor: There Are Always Reasons To Sell “We feel losses harder than the we feel joy from an equivalent gain, so in order to protect ourselves from pain, we want to know all the things that can go wrong. “Oh, the world is going to end? Please tell me more.”
Humble Dollar: Death By Lifestyle “Retirement is a chance to have the time of your life. It’s a well-earned opportunity to spend your wealth, visiting places and enjoying experiences you always said you would. But you need to get there first—and to be in sufficiently good health to make the most of those final decades.”
Retirement Field Guide: Preparing For “What-Ifs” “Here are two things I do know – just about all the successful investors I know purposefully act on a plan and just about all the failed investors I know react to current events that are almost certainly advertised as the end of the world as we know it.”
Of Dollars And Data: Nobody Knows Nothing “Logically this statement implies that “everybody knows something,” but that’s not the spirit of the phrase. What it really means is that no one has a monopoly on knowledge. No one is infallible. “
GaryVee: How To Build The Tallest “Building” Watch below—warning, Gary uses some NSFW language, but this is so good!
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.