Bond and Stock Behavior Throughout History
I think it’s important for investors to understand the historical behavior of the investments they hold in their portfolios. This understanding helps investors maintain realistic expectations of their investments going forward (both good and bad), invest more appropriately, and remain disciplined through up and down years. “Remaining disciplined” means not chasing returns in good years while not fleeing your strategy in bad years. Continue reading “Bond and Stock Behavior Throughout History”
The True National Budget Deficit
We recently found out that the U.S. government’s official estimate of the national budget deficit for fiscal year that ended September 30th was $779 billion. Yet, when I look at the change in the national debt for the same period I see an increase of $1.25 trillion.
So if the official deficit was $779 billion, how did the national debt grow by over $1.2 trillion? Sounds like questionable accounting practices to me. Continue reading “The True National Budget Deficit”
Quarterly Market Update: Diversification Bites
I’ve provided you with performance of various asset classes around the world for both the third quarter and year-to-date to give you a sense of how global markets are performing. I’ve sorted the list by Year-To-Date returns going from lowest to highest.
What do you notice? Continue reading “Quarterly Market Update: Diversification Bites”
“Comparison is the thief of joy.”
Executive Summary: I work out at a gym whose motto painted on the wall is “Stronger Than Yesterday.” This motto has nothing to do with anyone else. It’s solely about being better than you were the day before. It’s about constantly improving and doing the right things each day to continue moving in the right direction. Focus on the process. Enjoy the journey. It’s the same when it comes to your finances. Don’t worry about anyone else. What they are doing is irrelevant. Get your plan in place and then do the right things everyday to keep marching towards the goal of true financial independence…financial freedom…whatever that may mean for you. Continue reading ““Comparison is the thief of joy.””