The Stories We Tell Ourselves
Ostensibly written to explain economic events this article is one of the best you’ll ever read. Understanding what we tell ourselves and why is the first step down a path of better life decisions.
Summary of Tax Changes
This chart does a nice job showing the prior laws, the competing Senate/House proposals for change and how things were resolved during the reconciliation process to create the new laws to go into effect beginning in 2018. Missing from the chart is discussion of the changes to §529s. Previously distributions in order to qualify for [...]
Stock Market Records Mean Little to Most Americans
Takeaways from the above: more than half of American households own no stock roughly 1/3 maintain indirect ownership and with the rise in passive strategies (i.e. indexing) have endowed giants like Vanguard with enormous voting power over corporations Now consider the following: 60% of American families combined own less than 2% of stock wealth [...]
Tax Bills: House vs Senate
Both the House and Senate passed Bills to reform the Internal Revenue Code. Here's how they stack up as they had into the reconciliation process:
Denial Isn’t Just a River in Egypt
It’s a poor joke but it seems appropriate given data released yesterday by the Hartford Funds. A decade after the deep financial crisis the majority of survey respondents said there was no impact upon their lives. Really? Wow! And yet... 42% of respondents reported that they avoid investing in financial markets 46% have altered their [...]
Mohamed El-Erian: “It’s the Journey – Not the Destination”
On the heels of when smart people do stupid things we provide an example of when smart people say smart things. Today it’s Dr. Mohamed El-Erian. Read his comments focusing on the importance of the big picture – of the road traveled instead of what’s at the end of it. The implications are huge. It isn’t [...]
Warren Buffett Reminds Us Smart People Can Do Stupid Things
In an interview with CNBC the Oracle of Omaha disclosed that his investment vehicle (Berkshire Hathaway) is delaying taking profits in anticipation of a tax cut. Right now we're sitting and watching because within three months, actually less than that, we'll know the answer on it . . . I would feel kind of silly [...]
Tell Them What They Want To Hear
Should a financial relationship be about doing what’s right or feeling good? The former, right? Not so fast. A survey by index zealots DFA found the #1 thing valued in receiving financial guidance is a “sense of security / peace of mind.” Not that that’s a bad thing of course but at 35% of respondents [...]
Everyone’s a Buy and Hold Investor Until…
The stock markets hit all-time highs on a seemingly daily basis. Investors are puffing out their chests proclaiming they’re not only buying and holding but adding to their equity positions by buying the dips. It’s easy to buy and hold in an up market. The question is . . . how many investors will stick [...]
Keeping Your Cool When the News Heats Up
As summer wanes and we power towards Labor Day we’re left with a couple of realities: the days are hot the news cycle is slow Hot days find us seeking A/C and a cool drink. Slow news cycles make us overreact as the insignificant suddenly seems anything but. Lately we’ve been bombarded with the usual. [...]