“Truth be told, if you keep buying high and selling low, you should stay out of the stock market, because you’re losing money. Your primary goal as an investor should be not to lose money.” – Carl Richards
Some of you may already know this, but my first book “Pragmatic Capitalism: What Every Investor Needs to Know About Money and Finance” is set to publish in July. We’re still in the late stages of production, but some of the first reviews are trickling in. This one is from Publisher’s Weekly:
Forecasters have a poor reputation for predicting recessions. This column quantifies their ability to do so, and explores several reasons why both official and private forecasters may fail to call a recession before it happens.
Market monetarists have had some problems with [the Bank of England paper on bank money creation], which is understandable given their emphasis on monetary aggregates rather than interest rates as the appropriate framing for monetary policy and theory.
A lot of people have started asking me about some of these Robo Advisor services like WealthFront and Betterment in recent months. I’ve started digging into the businesses in more detail, but while I am in the process, I did want to pass on some pretty cool news from Vanguard – they’re getting into the game also.
Price compression is when market participants price in many years worth of future performance into the current price. They are, in effect, buying today with the expectation that future earnings will justify current prices.