If you have been following us lately, last week we posted an article which argued that typical Americans were better off not trying to time the market when they invested monthly through paycheck deductions (say, 401(k)s or automatic investments in IRAs). That’s right: periodic investing and dollar cost averaging is our opinion of the best […]
Probably the second most misunderstood quote in literature is F. Scott Fitzgerald’s “There are no second acts in American lives” from the notes of Fitzgerald’s The Last Tycoon. (Number one? Nietzsche’s “God is dead.”, which appears in a few places, most notably Thus Spoke Zarathustra). Expand that sad misunderstanding to all of North America, and you […]
On Monday we brought you our brief examination (anything without a calculator involved is ‘brief’ here on DQYDJ) of recent Nobel Prize winner Robert Shiller’s cyclically adjusted P/E ratio and what it meant for today’s pricing in the S&P 500. For those of you who just found our site, you might not be familiar with […]
Is it true? Is having less money to throw around and managing it on your own really an investment advantage? Let’s ask Warren Buffett: “If I was running $1 million today, or $10 million for that matter, I’d be fully invested. Anyone who says that size does not hurt investment performance is selling. The highest […]
One of the silliest illusions which has mesmerized the American people is the conflation of income and wealth. They are two topics that are, of course, intertwined (and correlated) – but not necessarily good proxies for each other.
Are you an active or a passive investor? As with all things in finance (such as the type of investor you are), there are shades of gray, but you can basically break down investing strategies into one of those two categories.
I’d be remiss if I didn’t highlight Warren Buffett’s post today in the New York Times. Buffett is never lacking with a quote or an opinion, and on the topic of deficit spending he’s no different. Hilariously, he refers to the massive influx of liquidity into the economy as “Greenback Emissions”. I definitely agree with Buffett on this topic; we’re in for a pretty good amount of inflation if the government doesn’t dial back it’s money printing efforts.