The market is at uncomfortably high levels. We have valuations higher than the 2000 dotcom bubble, but the high valuations are also coinciding with the record high profit margins for corporations. Some people wouldn’t feel comfortable touching the market with a 10 foot pole. Well, we are investing with a 9 foot pole (ETFs with…
Readers of our blog know quite well about an interesting indicator CNN has that’s called the Fear and Greed Index. It goes from 0 to 100, with 0 being extremely fearful that the world is probably going to end very soon, and 100 being extremely greedy, with everyone expecting everything to keep going right and…
Are you worried about the recent losses in the stock market? We haven’t had a week as bad as this since the 2008 Financial Crisis, and apparently it’s also the fastest 10% decline in history after the market just hit all time highs. If you’re investing in the stock market, you have a right to…
I love learning math tricks that help me calculate a number quickly. One math trick that’s particularly helpful in the investing world is called The Rule of 72. Basically, if you have an investment that is growing at X% – let’s say 7% – then you take 72 and divide it by 7 and you…
It’s the one constant in the markets, the cycle of fear and greed. Fear is healthy for stocks since it gives firmer footing for the short term going forward, since the fear index usually drops to lows like this only after a good chunk of people who are already are afraid have sold. Once this…