October 2018

Bad Times for Active Stock Pickers

Almost no active managed funds have beaten the market/their benchmarks over the past 15 years.

NYSE New Highs at Rare Levels - less than 10%

SUMMARY - in the very rare occurrence that less than 10% of NYSE stocks are making new highs, after-the-fact analysis shows these are likely markers of market bottoms. Subsequently, the broad market as followed with rebounds of 10% to 33% about 80% of the time.

Habits

We don't rise to the level of our goals, we fall to the level of our systems. -- James Clear, Author of new book 'Atomic Habits'

Thought Exercise - October Edition

Let's try to a little less wrong. How you accomplish this is up to you. Hint: it requires honesty and humility with yourself.

Different Kinds Of Smarts

“The older I get the more I realize how many kinds of smart there are. There are a lot of kinds of smart. There are a lot of kinds of stupid, too.”

– Jeff Bezos
 

The Happiness Equation

To say that “money isn’t everything” is more than a cliché. Studies in the early 1970s demonstrated that a sense of well-being, or happiness, had not increased commensurately with income over the previous half century.1

Talking Risk: Emotion vs. Data

We tend to base our assessment of risk on emotions (how we feel about it), and then rationalize (or try to) that we have done so using objective data.

Our Reactions