A Wealth of Common Sense. Investor, author, and host of Animal Spirits podcast, focuses on simplifying finance for everyone; has backed over 200 companies.
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On today’s show, we discuss:
Why investors continue to hold $7 trillion in money market funds despite the Fed easing cycle
How the quality of high yield issuers today compares to historical norms, and why spreads remain tight
Public credit versus private credit: liquidity, transparency, and the risks of opening priva...
I wrote piece last week called A Short History of Stock Market Pullbacks to show how often stocks are down certain levels over time:
I like to do this when the stock market falls just as a reminder that it’s completely normal.
Here’s the natural follow-up question I received:
Do you have any charts or data for the “bounce back” periods following these pullbacks?
I’ve done versions of this i...
There are some concepts you hear about in life that make sense the moment you learn about them.
Occam’s Razor. The 80/20 rule. Murphy’s Law. Index funds.
Indexing made sense to me right off the bat. Low costs. Tax efficient. Low turnover. Low maintenance. Simple. And very hard to beat over the long-run (even by professional money managers).
I’ve been investing in index funds for more than 20 years. If an...
We also covered questions about how much to save for retirement in your 30s, the reasons you should or shouldn’t own bonds, how military veterans should save their money and how to make up for lost time if you got a late start on saving for retirement.
Further Reading:
Millionaires & Delusions
1And I’m guessing they save even more than that in retirement accounts. Also a good rule of thumb for middle clas...
There’s a lot going on in the world right now.
War, spiking oil prices, higher energy costs, rising inflation expectations, a potential pause in Fed rate cuts, the AI buildout, a slowing labor market, the software apocalypse and more.
And the collective response from the stock market has been a relatively shallow correction thus far.
The S&P 500 was down just 6.8% from the highs at the lowest point this year:
I...
