Timelessness doesn’t trend on Twitter
“The real danger is that investors will gamble away their future in the misguided belief that profits earned over a lifetime of disciplined investing can be achieved overnight. The smarter path is as boring as it is obvious: Invest in a diversified portfolio...and try to remember that money doesn’t fly, it crawls.”
– Bloomberg opinion columnist and financial analyst Nir Kaisser, in an 8/9/21 article about the timeless wisdom of diversification and his concern that it is being cast aside by many of today’s investors eager to build wealth quickly. Read more at bloom.bg/3jcxY4m.
When ‘overvalued’ may not mean ‘overdue for a crash’
“I’m not trying to say stocks are cheap. I’m not even trying to say they’re not expensive. With interest rates so low and the market at all-time highs, I would almost be more worried if the stock market wasn’t expensive. But there are good reasons for the overvaluation in the U.S. stock market right now. This doesn’t mean returns have to stay high but it also doesn’t guarantee a second-coming of the dot-com crash is inevitable. Context matters.”
– Ben Carlson, in an 8/10/21 post on his blog, A Wealth of Common Sense. He argued that current valuations may be justified. Read more at bit.ly/384vvlR.
Neither poverty nor riches
“Those who pray for no more than they can handle will find joy and comfort in even modest achievements, for they will know and trust that God has given them what is for their best and withheld from them what would be to their harm…. For to pray, ‘God, give me only as much success as I can handle’ is to accept the challenge to become ready to handle more.”
– Tim Challies, in an 8/16/21 blog post about the difficulty many Christians have remaining humble and faithful as they grow in worldly success. Read more at bit.ly/3BczV71.
“The oversimplified behavioral finance 1.0 narrative is being used as a weapon to bludgeon us as investors into believing that we’re just a giant animated blob of cognitive stupidity, that we only act on impulse or emotion, and that emotion is inherently bad. The second generation of behavioral finance doesn’t necessarily negate the brilliance of the first — it just frees it from the either/or trap.”
– Money manager and financial writer Tim Mauer, in an 8/22/21 Forbes piece about “behavioral finance 2.0,” which does away with the harsh distinctions that our financial decisions are either completely rational or completely irrational. Read more at bit.ly/3kr5uTB.
An apple a day
“‘Be more patient’ in investing is the ‘sleep 8 hours’ of health. It sounds too simple to take seriously but will probably make a bigger difference than anything else you do.”
– Morgan Housel, in an 8/25/21 post titled “Rules, Truths, and Beliefs” on the Collaborative Fund blog. From the same piece: “Average returns sustained for an above-average period of time leads to extraordinary returns.” To read more go to bit.ly/3jlX1BK.