Every Friday I’ll be releasing my own compilation, a mixtape if you will, of blog posts from the week I think are worth your time.
The writing in the blogosphere continues to get better each week…we are living in an amazing time where we have access to all of this information. I’m thankful the writers I include in my mixtapes share their work because they have had a tremendous impact in my evolution as an advisor, investor and person. I hope you enjoy this week’s selections!
Morgan Housel via Collaborative Fund: The Seduction of Pessimism I don’t know what my parents did to instill eternal optimism in me (thank you Mom and Dad), but pessimism is something I just don’t understand. Morgan tackles pessimism and explains why we respond to fear, threats and negativity differently than more optimistic information. The answers are why we have “Markets in Turmoil”, negative headlines in the news, and excessive storm coverage from our local weatherman. “Organisms that treat threats are more urgent than opportunities have a better chance to survive and reproduce.”
The Reformed Broker: It Has Nothing to do With Which ETF To Pick The role of a financial advisor is evolving away from an asset allocator to the a role of a true advisor. Thanks to technology, building a portfolio can be done by almost anyone for next to nothing–the need to pay a financial advisor to build an investment portfolio is going away. The financial advisors whom survive will be the ones acting as an advisor helping their clients make financial decisions beyond which fund to choose. Great work by JB, as always.
The Irrelevant Investor: A Lesson in Humility I’d be lying if the Bitcoin (and other cryptocurrency) boom hasn’t piqued my interest. I went so far as to open a Coinbase account, but I have yet to put anything in it–what better way to learn the ins and outs of cryptocurrency than to own a couple of digital coins, but time will tell if I ever pull the trigger. Michael Batnick reminds us the difficulty of determining the future of cryptocurrency and the temptation to invest in it.
Barry Ritholtz via Bloomberg: Trump’s Economic Agenda is Almost Dead I tend to stay out of politics for a number of reasons, but this is a good piece addressing the prospects of the economic policy that has been the supposed reason behind the “Trump Rally”, which has begun to show that the market rally has less to do with the president and more with the economic recovery in the U.S. and globally. Barry knows far more about politics than I do, so I’ll let him break it down.
The New York Times: Amazon To Buy Whole Foods in $13.4 Billion Deal And just like that the game has changed. It was a bloodbath today for grocers after King Amazon snapped up Whole Foods to get into the grocery game. Naturally, Amazon’s stock responded positively, and at one point during the day, the increase in its market cap funded the Whole Food purchase. Crazy–it almost got it for free. We’ll see if Amazon can seamlessly add grocery to it’s repertoire; if history, and today’s reaction, are any indication, then Amazon will be a dominant force in the grocery game.
All About Your Benjamins: Never Count Another’s Money Don’t waste time focusing on other.
Disclaimer: Nothing on this blog should be considered advice, or recommendations. If you have questions pertaining your individual situation you should consult your financial advisor. For all of the disclaimers, please see my disclaimers page.