In a recent post, we talked about the difference between investors and traders, and everything in this post will apply to investors. That is to say, the content of this post applies to people interested in a longer term position in stocks of three or more years. With the historic bull run that the United … Continue reading What are Inferior Goods? 2 Stocks with Potential Durability for a Recession (or Depression)
Are you a trader or an investor? If you’re new to the stock market this question might seem trivial, but it’s important that you’re clear on the distinction. Many investors make mistakes by taking on the behavior of traders, and many traders often lose money when mistakenly acting like investors. Investors enter positions for long-term … Continue reading Seven Key Differences Between Investors and Traders
Update July 19, 2020: Stock buybacks are reportedly down 98% over the last year as of June 2020.In the wake of negative United States economic news this month, there's been a lot of talk about stock buybacks. The controversy is this: should major companies that have been buying back their own stocks as a means … Continue reading Why Are Stock Buybacks Bad?
In a recent piece on building a portfolio that can withstand any market environment, we discussed how many considered a 100% stock portfolio as the place to be during the last ten years. Then came a global pandemic and oil price war that set stocks back about 30% year to date. Disappointingly, other asset classes … Continue reading Hiding Places: Profitable ETFs During the Coronavirus Bear Market
Update: The building was demolished on February 17, 2021. The simple answer to the headline's question is Carl Icahn, the 84-year-old billionaire and supporter of President Donald Trump, the casino's namesake. That's the simple answer to this question, but the Trump era is a constant barrage of changing news stories, so much so, that the … Continue reading Who Owns the Trump Plaza Atlantic City and What is Going on With it Now?
On Monday, March 9, 2020 something that rarely happens took place. When the S&P500 dropped 7% within 3 minutes of the markets open, it triggered a 15 minute closure of the market known as a circuit breaker. The equities and options exchanges, according to the New York Stock Exchange, have procedures to kick in a … Continue reading What is the Purpose of a Circuit Breaker for the Market?
Tesla has yet to introduce autonomous flying vehicles but that hasn’t stopped the stock from taking off to new heights this month. As individual investors on Robinhood, catching the move that Tesla has made recently is all of our dreams. It’s also a “cool” company that most of us enjoy talking about. The CEO even … Continue reading The Most Hated Stocks of 2020
In the 1980's, McDonald's was on its long quest of fast food domination and thriving at it. A few years back, I watched The Founder starring Michael Keaton as Ray Croc, the brains behind the rapid expansion of McDonald's. The film really puts into perspective how the chain changed American, and global, dining habits forever. … Continue reading What happened to McDonald’s pizza? Our journey to the last location still selling it
Investing 100% of your portfolio in US stocks has been a winning trade for more than a decade now. Holding the popular ETF SPY (a popular stand-in for the S&P 500 index) over the past ten years would have netted you an excellent annual return of just under 14%. Investors who picked their own stocks, … Continue reading The Sleep Easy Portfolio: How to Sleep Easy in Any Market Environment With Just Four ETFs
"We thought originally it would be something that firms would buy for top employees...it soon became apparent the public was smarter than we were." Bob Crandall, American Airlines CEO & Chairman 1985-1998 The early 1980's were a time of difficulty for American Airlines. The Airline Deregulation Act of 1978, a law that was arguably quite … Continue reading What is the American Airlines Airpass? How AA once offered a lifetime of flights for $250,000