Wednesday , 18 October 2017

Personal Finance

Doing Next To Nothing In Your Portfolio Is A Winning Approach – Here’s Why

key to profits

As of the end of 2015, there were over 15,600 mutual funds, 11,000 hedge funds and 2,100 ETFs...[which] account for almost 50% more...than there are individual stocks and bonds. The paradox of choice makes it extremely difficult for investors to wade through this sea of complexity, but it also increases the temptation to make changes to a portfolio. People have a hard time sitting still in the face of this sheer number of choices, even when there are proven benefits from inaction with your investments. [Let me explain.]

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Financial Advice vs. Investment Management – The Differences Are Dramatic


A large majority of what the financial industry calls financial advice is really just glorified product sales. What most people actually need is advice about how their investments fit into their overall financial plan, and more importantly their life. Investment management & financial advice are both necessary components for long-term success, but it’s important to understand the differences. This article points out those differences.

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We’re In A Bubble! It’s Time to Take Profits, Increase Your Cash Position or Buy Some Protection


A bubble is the state of a market before the crash. It is a situation in which assets trade at a price that is considerably higher than their intrinsic value and, in my view we're currently in a bubble. The current S&P 500 P/E is at 25.09 (when the historical average is 15.61). The question is, "When will the market crash?" and I see worrying signs that this could happen soon.

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Believe It Or Not: Life In the U.S. Continues to Get Better & Better

good life

We are better off than ever before according to the Fed Q2/16 estimate of the balance sheets of U.S. households which shows that, collectively, our net worth reached a new high in nominal, real, and per capita terms. The bottom line is that, in fact, life in the U.S. continues to get better and better.

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