How many times have you heard the phrase “This Time Is Different?” In the context of investing it usually means something fundamental has changed in the way capital markets operate. The implied consequence is that you can no longer rely on the way things worked in the past to make investment decisions about the future.…
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When it comes to equity investing, the difference between luck and skill is primarily a matter of consistency. If you choose to invest in a fund or ETF designed to passively track some stock market index you are practically guaranteed to get market returns. Of course you need to make sure to utilize funds that…
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We usually talk about stock market performance on a yearly basis. And last year’s -18% S&P 500 loss was nothing to write home about. But during bad years daily volatility can also spike. In 2022 the index’s worst day was September 13th when it fell -4.3%. How does that one-day loss stack up against the…
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It’s common for conservative investors to become fearful after a year of awful performance in the stock market. Last year certainly qualifies; it was the seventh worst year for the S&P 500 since 1926. Could 2023 also turn out to be a bad year for stocks? Of course anything is possible. But two down years…
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If I had told you a year ago that Facebook’s stock price would drop by more than 70% in 2022, what would you have thought? That I’m crazy? Well, that’s exactly what occurred. From 2014 through 2021 an investment in Facebook (now Meta) would have cumulatively outperformed an investment in the S&P 500 by nearly…
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