I’m sure by now you’ve heard about GameStop. The saga reads like a made-for-TV tale about how the little guys stuck it to the big bad rich Wall Street hedge fund investors through what’s called a short squeeze. But the story has not yet played out to its end, and there are valuable lessons that…
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First of all, congratulations! Your Apple holding grew 77% last year. As if that weren’t astounding enough, Tesla’s stock price soared 720%! The gains you experienced in either of these stocks in such a short period of time are truly record-breaking! I’m not interested in debating whether you were an investment genius or merely a…
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It wasn’t that long ago that people expected a common 60/40 investment portfolio (that is, 60% stocks and 40% bonds) to return close to 10% without a lot of volatility. Good luck getting that kind of return today. Why? It’s primarily because bond interest rates have hit their lowest point in generations and have remained…
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A couple of months ago I wrote about the consequences of investing at stock market highs. Or rather the lack of consequences. See https://www.cognizantwealth.com/2020/10/20/is-trying-to-time-the-market-worth-it/. Here’s some additional data demonstrating why the fear of investing when stocks are highly valued is misplaced. J.P. Morgan Wealth Management logged each of the days on which the S&P 500…
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A headline in the San Jose Mercury News caught my eye the other day: “State’s COVID-19 case rate explodes.” One would get the impression that half the population of California is sick with COVID. While the media does tend to overdramatize events, the data they reported is correct. The latest weekly rate of new infections…
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