Tuesday , 7 April 2020


Personal Finance

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

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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Rebalance Your Portfolio Periodically – Here’s Why

Rebalancing is a form of both risk management and a systematic way to carry out a contrarian investment strategy. The entire point of allocating money to different investments in a thoughtful way is to create a risk-return profile that balances out your long-term objectives with your short-term comfort level. Deviating from that risk-return profile can be a huge behavioral risk if you’re not aware of how it can change your portfolio’s composition.

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