This week, we finished one of the worst declines in stock market history.  Declines were widespread, affecting all major equity asset classes, and even spreading to bonds, as selling became relentless. People are starting to ask, with reason, whether the stock market can ever recover.  Younger people, who have not experienced a true bear market …

Trading when the market is having trouble finding a price – as in the middle of a panic such as the one we are experiencing now – is risky business. That is why it is best to trade as little as possible (Passive Low cost) and to own funds whose average daily volume (ADV) is …

Markets do not follow the tidy statistical model most people have come to think they do. For example, this week (February 24-28, 2020) has seen the biggest declines since the 2008 market collapse. The potential disruption from the coronavirus that is now sweeping the world has been known for over a month, and yet asset …

If you bought anything using bitcoin or other virtual currency in 2019, every transaction must be reported on your 2019 taxes.  You will be taxed on gain or loss on each transaction from the time you bought the virtual currency until you spent it. The IRS is stepping up enforcement.  They have sent letters and …

The Efficient-Market Hypothesis states that asset prices reflect all available information. Most real people, as opposed to institutions or insiders (who are legally barred from trading on their information), are “price takers,” meaning that they must trade at prevailing prices, with their transactions being unable to affect the market price. The ordinary person’s buying or …

At year end, articles about market predictions, or what funds to buy, tend to appear more frequently. I am always skeptical of predictions concerning which funds or sectors (or individual stocks) will be “best for the coming year.”  I wish I had kept a running log of how these predictions tend to turn out.  Generally, …

We are advised everywhere to “live a life of no regrets.”  This is easier said than done.   A quick tour of the internet reveals stories of people who wish they had not cheated on a spouse, or who regret not seizing an opportunity in a moment that would not come by again. Most people’s thoughts …

A recent post at White Coat Investor suggests that investors should not fear rising interest rates when considering whether to include bonds in their portfolio. https://www.whitecoatinvestor.com/bond-investors-should-not-fear-rising-interest-rates/  It’s worth reading in its entirety.  The main concerns about bonds and bond funds are that returns are poor, and bond funds can decline with rising interest rates. All …

Does your retirement plan look like a collection of leftovers in the back of a refrigerator? In a bygone era, it was common for a person to work for one or two companies over an entire career.  The company gave them a pension, and off they went into retirement. People who changed jobs a lot …