Lessons in Investing, with Visuals
- You will be far wealthier holding through the bull markets than you will ever lose by holding through the bear markets.
- You are your own worst enemy. Your behavior has far more to do with your investment success than your intelligence. Behavior is why most investors underperform.
- While thinking about your behavior when it comes to investing, don’t forget the wild ride that market cycles take your emotions on.
- Pessimism sounds smart but isn’t helpful. There will always be a reason to sell, but the money’s time horizon should determine your risk tolerance, not what the talking heads on TV say the issue of the day is.
- Forecasts are a nice word for guessing when it comes to investing. Professional forecasters can’t even predict the DIRECTION of interest rates, let alone the magnitude.
- The average intra-year drop is 14.3% since 1980, but the market has ended positive in 32 of 43 years. Markets don’t go straight up, don’t let fear and panic dictate your investing strategy.
Stock market calendar this week:
|MONDAY, NOV. 6|
|11:00 AM||Fed Gov. Cook speaks|
|2:00 PM||Federal Reserve senior loan survey|
|TUESDAY, NOV. 7|
|8:30 AM||U.S. trade deficit|
|9:15 AM||Fed Vice Chair for Supervision Barr speaks|
|10:00 AM||Fed Gov. Waller speaks|
|3:00 PM||Consumer credit|
|WEDNESDAY, NOV. 8|
|5:15 AM||Fed Gov. Cook speaks|
|9:15 AM||Fed Chair Powell delivers opening remarks|
|10:00 AM||Wholesale inventories|
|2:00 PM||Fed Vice Chair for Supervision Barr speaks|
|4:45 PM||Fed Vice Chair Jefferson speaks|
|THURSDAY, NOV. 9|
|8:30 AM||Initial jobless claims|
|2:00 PM||Fed Chair Jerome Powell on panel at IMF|
|FRIDAY, NOV 10|
|10:00 AM||Consumer sentiment (prelim)|
Most anticipated earnings for this week:
Did you miss our blog last week?
About Amit: I am a first generation American, the son of a working-class Indian family, and I lived through my parents’ struggle to find their place in this country, to put down roots that would sustain them as well as their children in a new land. As they encouraged me to excel in school and fostered my hobbies and interests, I was keenly aware of the dynamic between them. I understood that there was a difference between where they came from individually and where we were now. They worked hard in their individual capacities, but they weren’t always on the same page about financial issues – and that can make or break a family’s future. I didn’t know it at the time, but this laid the groundwork for my passion towards financial services and helping families succeed.