A “Bear Market” is usually defined as the condition in which the price of a market falls – on a closing basis – 20% (or more) from recent highs amid widespread negative investor sentiment. Your answer to the question, “Are we in a Bear Market?” will depend on what “market” you are considering.
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This is the working title of my 2nd book. It is based on my 40 years investing in stocks, 25 years in options, 20 years in real estate, and 15 years in private markets. If there is a tool that could be invested in, I have invested in it. At the end, I choose to invest 90% of my own and my family's investable assets in the simplest way possible.
This week I want to place the 2 afore-mentioned definitions of "risk" into the context of a lifetime financial plan, to explain why I do not believe these definitions apply to a family with an asset-allocated and broadly diversified portfolio trying to meet a lifetime of financial goals.
The problem with accepting the standard definition of “Risk” is that it is literally devoid of a critical aspect of personal finance – TIME! When we add time to the analysis of risk, a different risk definition is born. Think of the next 30 years of your own life. What do you want your money to be able to do?
“Jonathan, how are your portfolios performing?” This is the question we get most often (especially from non-clients). In my opinion, the one discussion point that matters LEAST in building a lifetime of positive financial outcomes is your portfolio’s current performance. This belief is profoundly counter-cultural.
The last couple weeks we’ve been highlighting the only three percentages that matter. The combination of the 2nd and 3rd determine whether your retirement income will rise to meet your rising cost of living and last the rest of your life… or not.
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From last week's Mindful Money Weekly, you remember that there are three measurable and controllable percentages that are absolutely critical to your long-term investment success. When you're looking at your personal finances, your equity allocation is the second of the dominant variables you need to get right.
Shawn Yesner of the Crushing Debt Podcast interviews Jonathan DeYoe on Mindful Investing.
There are three measurable and controllable percentages that are absolutely critical to your long-term investment success. When you're looking at your personal finances, these are the three dominant variables you control to reach the freedom of financial independence.
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Paul Fagan and Paul Beck of the Financial Dads Podcast interview Jonathan DeYoe, bestselling author of Mindful Money.
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Over the last two weeks, we have placed the choice between using passive tools vs. active tools into the greater context of our lives. For these reasons, we believe that investing using passive tools has much to recommend it. But… what about those SIMPLE RULES?
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Last week, we introduced the constant competition between two camps of investors: the Active vs. the Passive. And, without taking a stance re: financial outcomes, we made the case that a passive approach might be the better approach. “But, Jonathan, I really want to outperform.” I get it. So do I.
There are two ideas constantly competing for dominance in the world of investing advice – Active vs. Passive. Your outcomes, in terms of investment returns, will probably differ very little based on which side you choose to believe. Your outcomes, in terms of the time spent and anxiety provoked, will differ a great deal.
With so many people predicting, some of them will always get it right. The surprise is that when we look at active management, there are fewer who get it right than there should be based on the number of predictions and pure, random chance. The odds are stacked against the prediction of future relative performance.
To my fellow Berkeleyans and other Bay Area residents, the headlines about the decline of American democracy are getting downright scary. I have begun to hear questions about how this might affect the economy and markets. It’s probably a good time to return to our Guiding Principles – something we do every January anyway.