Viewing entries tagged
investments

Have You Heard The One About The "Fiscal Cliff?"

So that there's no shortgage of things to worry about, meaningless as they often are, we'll give you some advanced lead time to prep for the next problem dejour, the "Fiscal Cliff." 

It seems that the fiscal cliff is the collision of a number of policy changes that are set to take place in 2013 that are destined to be the next fiscal impediment. 

There will always be change and challenge. Question is, what will you do to adapt and prosper?

There will always be change and challenge. Question is, what will you do to adapt and prosper?

The attached article presents the facts rather susinctly I feel and it comes with one of the more noteworthy admonitions...ignore it when you hear it. 

This all flows so wonderfully well with an insight from last weeks blog by Larry Swedroe. In discussing the predictive capabilities of our world full of "experts" Mr. Swedroe noted: 

"One of my favorite sayings is that there are three types of investment forecasters: those who don’t know where the market is going; those who know they don’t know; and those who know they don’t know but get paid a lot of money to pretend they do. In other words, they are playing an entirely different game."

Read up on the Fiscal Cliff here, and be ready to ignore it when the media grabs this by the tail and starts running with it. 

Sounder investment decisions help to prevent this kinds of dooms day thinking. 

Do We Know We Don't Know?

It's a really good question and one which, evidentally, most people get wrong most of the time. 

Mostly, no, we don't. We think that we can define our future, yet fail to actually do it. Knowing how to do it isn't really doing it. 

Mostly, no, we don't. We think that we can define our future, yet fail to actually do it. Knowing how to do it isn't really doing it. 

The good news (sort of) is that the people that get it wrong are a lot more of the people than you think. 

We've been pursuing passive investment strategies now for more than a few years, knowing that we do in fact know. 

I love it when an article concludes with the comment: "Finally, it's my experience that the vast majority of investors don't even know what their returns have been relative to appropriate benchmarks. One reason is that Wall Street doesn't want you to know- if you did, you might stop making it rich. Another might be that the truth would be too painful, so investors themselves don't want to know. But you should know. Without such information, there is no way to know if your strategy is working."

In this great article, "On Magical Thinking and Investing" Larry Swedroe hits all the high notes. 

Read "On Magical Thinking And Investing" here.