It may seem that the U.S. stock market has been the place to invest your savings over the last few years. The S&P 500 returned 32% in 2019, 18% in 2020, and is currently up almost 20% so far this year. That’s well above its 50-year average annual return of slightly over 10%. During periods…
Read more

If company earnings were the most important factor associated with company stock returns, shouldn’t the S&P 500 average annual index performance have reflected the average annual earnings growth of the companies that it comprises? According to Ben Carlson of Ritholtz Wealth Management, over the past 80 years corporate earnings have increased by about 6% annually…
Read more

The cryptocurrency exchange Coinbase went public earlier this month. But rather than following the standard initial public offering (IPO) process, the company chose to do a direct public offering (DPO), also known as a direct listing. What’s the benefit to the company, and, more importantly, what’s the benefit (if any) to investors? In a standard…
Read more

A thoughtless investor is someone who invests in something without performing any kind of due diligence first. I prefer the adjective “thoughtless” rather than “dumb” because the latter implies a lack of intelligence. Thoughtless investors can be highly intelligent but simply may not have the time or skills to do the work necessary to determine…
Read more