You’d think established measures of risk would meet a basic rule of investment prudence… But they don’t. The indicators are based on data showing how volatile a stock was in the past. So as a result, they only work if you assume that past performance guarantees future results. That’s a bad assumption… I detailed why …
Stop me if you’ve heard this before… Past performance is no guarantee of future results. It’s easy to support recommendations with pretty performance charts and impressive statistical studies. But no amount of mathematical analysis or graphic artistry can get around the fact that companies, markets, and the world can change. So as investors, we’re primed …
Why It’s Risky to Use Traditional Risk Statistics Read More »
A few weeks ago, my friend confessed something that no one ever wants to admit… He lost big in the stock market. And he wasn’t exaggerating, either… He was down 65% on a position – and yet, he was still holding on. Unfortunately, this isn’t the first time I’ve heard such a story… Many of …
Did you know that China has its own Amazon marketplace? It turns out the convenience of buying online and having stuff just show up on your doorstep is universally loved. It makes life so much easier… And it doesn’t matter whether you’re buying household goods, gifts, or even high-end electronics. The folks in China love …
China’s Amazon Is the Buying Opportunity of 2022 Read More »
My wife and I bicker about real estate… She wants to buy a house in New York City to earn rental income. I’m afraid to own just a single property for that purpose… If the tenant can’t (or won’t) pay rent, we’d be in trouble. This is especially worrisome in New York, where we live… …
A Major Acquisition Adds Comfort to This REIT’s 5.7% Yield Read More »
Many folks feared the worst for Big Oil when Joe Biden became president… After all, Biden’s campaign included a big focus on “clean energy” sources – like wind and solar. He emphasized plans to shift the U.S. toward low or zero carbon energy production, “green” industry manufacturing, and other climate-friendly initiatives. A move toward clean …
How the Mainstream Media Is Getting Big Oil Wrong Read More »
Bulls make money, bears make money, and pigs get slaughtered… That’s the No. 1 rule of investing, according to former hedge-fund manager and CNBC commentator Jim Cramer. And countless others have recited the old saying over the years. (See, for example, here and here.) But today, I’m going to show you why that’s not always …
Naïve Pigs Get Slaughtered… Prudent Hogs Make Money Read More »
Don’t underestimate pig smarts… Purdue University’s Dr. Candace Croney once taught pigs to play video games. And the University of Bristol’s Dr. Michael Mendl showed that pigs can deceive one another. In short, pigs aren’t as dumb as you might first believe… They can think and learn. The humble pig even found praise in the …
The First Step in Becoming a ‘Prudent Yield Hog’ Read More »
Folks, I’m sure you’ve seen it on the news – and felt it in real life, too… We’re living in the era of the “everything shortage.” And that’s especially true when it comes to semiconductors. (That’s the industry term for computer chips.) The semiconductor shortage has hit just about every industry in recent months… For …
You’ll either really love today’s essay… or you’ll stop reading in about 10 seconds. That’s because we’re going to talk about bitcoin – the world’s most popular cryptocurrency. Bitcoin is polarizing, of course… Old-school investing traditionalists hate it. They might even go as far as calling it a “scam.” Meanwhile, the younger generation loves it …
Youthful Momentum Reigns Over the Longer Term in This Debate Read More »
