Week In Review Articles:
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Humble Dollar: A Good Life ” Now, what people increasingly want is A Good Life—one that’s focused on time with friends and family, work that’s fulfilling and a sense of financial security.”
The Belle Curve: Advisors Earn Their Stripes In Down Markets: “When markets are humming along with no volatility in sight, an advisors’ job appears easy. Investment performance becomes a blip in quarterly reviews and clients are happy to discuss lighter topics such as family or travel. Bear markets are different. Clients need more than small talk, they need unwavering advice, confidence, and hand holding.”
Morgan Housel: Time Horizon vs. Endurance “Having the endurance to make long time horizons work means your allocation, cash flow, and mindset are intentionally designed to deal with the nonsense that occurs within short time horizons.”
A Wealth Of Common Senses: Who Benefits From A Market Correction “Cognitive dissonance is the behavioral explanation that says our brain seeks to reduce the discomfort caused by two beliefs that are inconsistent with one another. Basically, one wins out, and it’s typically the easier route.”
Pragmatic Capitalism: Telling People Not To Panic Isn’t Good Enough “Being told not to panic while you’re panicking during a bear market is like getting on a rollercoaster that’s a lot scarier than you thought and then having your rollercoaster advisor tell you not to panic while you’re in the middle of having a heart attack during a downturn.”
The Big Picture: The Stock Market Meltdown That Everyone Saw Coming “The alternative to this soothing storytelling is an unimaginable world of utterly random events leading to wholly unforeseeable outcomes. This stands in stark contradiction to how we have previously presented the world around us: orderly, predictable, subject to expert management and prediction. That simply will not do.”
Of Dollars And Data: Why The Best Predictor Of Future Stock Market Returns Is Useless “In one of my favorite animal experiments, researchers wanted to see how pond cichlids would change their mating behavior as the sex ratio (number of males relative to females) was altered in a controlled environment.
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