Subprime Auto Loans Reach New Highs

Subprime Auto Loans Reach New Highs

Remember the billions of dollars of poorly-vetted mortgage-backed securities (MBS) that helped destroy Lehman Brothers and numerous banks (not to mention the world economy) in 2008? This time it’s auto loan-backed securities (ABS) that are setting records.  According to Bloomberg Businessweek, $26 billion in subprime ABS bonds were sold in 2016, surpassing the peak reached…
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How To Worry Less About Your Investments

I don’t suppose worrying is ever a good idea.  If there’s something in your life that you are concerned about, and you have the ability to change it, then you can (and should) do so.  If you have no control over it, worrying about it won’t improve anything and might even negatively impact your health. …
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What Does It Take To Be Happy In Retirement?

It goes without saying that eliminating worries about money is a key component of retirement peace of mind.  But while financial security may be necessary for retirement happiness, it is not sufficient.  I frequently encounter many new retirees who are having difficulty making the transition from spending forty hours (or more) a week at the…
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Which Is Better: Bad Advice or No Advice?

Did you know that there are two different standards for investment advice depending on who provides it?  Advisors (or salespeople) at  brokerage or insurance companies are legally allowed to recommend an investment that may cost you more than alternative investments (thus providing them with more income) and that may not meet your risk or return…
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Understand The Data You Use for Investing (Part 2)

In my last post I demonstrated the importance of understanding how data is presented when comparing the performance of different investments.  When utilizing a cumulative performance chart, the key takeaway was that the starting point has a significant impact on the perceived results.  In our example, we compared the Dow Jones Total Stock Market US…
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Understand The Data You Use for Investing (Part 1)

I was having a discussion the other day with someone about investing in international equities.  Her belief was that international stocks have significantly underperformed U.S. stocks for a long time, and therefore she did not see any value in adding them to her portfolio.  As proof, she cited the following chart from the Wall Street…
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