If you bought something at $10 and it increased to $40, you would have made $30…a 300% profit. But if the price then went from $40 to $30, did you lose 25%? Depends on your mindset. I’d argue that while you lost 25% off the high, you still have a 200% return if...
Don’t pursue a thrill. I saw Bitcoin hit 40,000 this weekend and read a lot of commentary on the pros and cons of holding or selling…the excitement is off the charts. I get it – it’s thrilling when an investment goes up…but remember, the pain level is twice the...
Predictions are worthless, so instead, let’s review some investing lessons from 2020: 1. Don’t fight the Fed OR the government – the turnaround from March lows was mainly a function of Fed intervention and fiscal policy weight. 2. Have liquidity – you never want to...
One thing we’ve developed to help us make good decisions is our MONCON Recession Conditions model. We introduced an overview of the recession forecasting model in a 2018 blog post, so I won’t go over all the details again here. MONCON is designed to alert us when...
I read a great Morgan Housel quote over the weekend from his book The Psychology of Money. “Happiness, as it’s said, is just results minus expectations.” Think about that for a second. Or visualize it as a math equation like this: Results – Expectations =...
