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Howard Marks: Lessons Learned from the Oil Crash

From a brand new memo by Howard Marks (Oaktree) – his takeaways from the latest boom/bust on everyone’s radar and how we’ve reacted to it: In part the emotional reaction to negative developments is the product of surprise and disillusionment. Part of this may stem from investors’ inability to understand the “fault lines” that run…

Yellen Finishes 2014 with a Win

They said the Fed couldn’t taper without massive market dislocations. They said the Fed was “trapped” and “backed into the corner” and “behind the curve” or that there no longer was a curve anyway – just endless helpings of stimulus and no benefit accruing to the economy whatsoever. In the meantime, the FOMC has now removed…

Don’t Be a Cuba Muppet

It’s really wonderful to see President Barack Obama normalizing relations between Cuba and the United States after fifty years of Soviet-instigated animosity that is totally irrelevant in today’s day and age. I believe it will be great for the Cuban people and their stateside family members, as well as for businesses in Florida and intrepid business…

What Investment Success Looks Like To Me

“To me, success for individual investors means they’re able to tie their current assets to their future liabilities in such a way that they can do all the things they want to do in retirement and beyond. It’s not a dollar figure or an asset allocation. It’s that an investor can spend the money on…

The First Casualty of a Bear Market

Nick Murray says “The ability to distinguish between volatility and loss is the first casualty of a bear market.” I turned to one of my favorite passages of his masterpiece Simple Wealth, Inevitable Wealth this morning as turmoil from overseas and the commodity markets made its way through the headlines. Nick relays a great anecdote…

The Riskalyze Report: DFA Gains Adherents

My friends at Riskalyze share the stocks and funds that advisors all over the country have used in their clients’ accounts each week. This data has been aggregated from across the client accounts of the thousands of advisors who use the software. Most of it comes directly through the third-party custodians where advisors’ assets are held. I hope we…

Another Lying Paper Trader

I’m not going to spend a lot of time on this Teen Trader story where a high school junior from Queens, New York conned a bunch of journalists into believing he’d made $72 million in profits speculating in the stock market on his lunch hour. Anyone who’s spent even a few years in the market…