Three things investors can do to survive this bear market and thrive in its aftermath. Topics covered include: What are bear markets, how often do they occur, and how long do they lastHow the current bear market differs from previous onesHow severe have losses been for various asset classesHow have asset class long-term expected returns changed since last November when the sell-off beganWhat actions can investors take to make it through this bear market and take advantage of … [Read more...]
317 Plus: Mid Month Investment Conditions Update, Commodity Bull and Bear Markets, and Worthy Bonds
In Plus episode 317, we evaluate recent market returns and economic releases. We look at whether commodities are starting a new bull market or whether the nine-year bear market continues. Finally, we analyze the risk Worthy bonds which pay a 5% yield. … [Read more...]
292 Plus: Bear Market Rallies, FOMO, Bank Loans and Buying Individual TIPs
In Plus episode 292 for the week of March 28, 2020, we look at the magnitude and duration of market rallies within bear markets. We consider why the fear of missing out is normal and what to do about it. We consider the math behind bank loans with regard to rising defaults and why bank loans are not likely to fall to zero. Finally, we look at how to buy an individual Treasury Inflation Protection Security. … [Read more...]
291 Plus: Mid Month Update, When to Increase Risk, Mortgage REITs and Covered Call Writing
In Plus episode 291, for the week of March 21, 2020, we review market returns and the latest economic releases. We discuss the recent changes to the model portfolios. We also consider what needs to happen before we increase risk by investing more in stocks. We review what is going on in the mortgage REIT space where securities have gotten hit extremely hard. Finally, we answer a member's question about covered call writing on a stock that comprises a large percentage of his net worth. … [Read more...]
243 Plus: March 2019 Portfolio Review, Preferred Stock and 10th Anniversary of the Secular Bull
In Plus episode 243 for the week of March 8, 2019 we review a recent change in David's portfolio as it relates to preferred stock and take a look at the characteristics of preferred stock. We also explore secular bull and bear markets in recognition of the 10th year anniversary of the current secular bull. … [Read more...]
197 Plus: 30 Year Returns, Mortgages and Beating the Lottery
This week March 24, 2018, we answer the questions should expected returns for stocks be higher if one has a time horizon of 30 years versus 10? We also answer a member's question on whether he should fund a higher down payment for his new house from his bond portfolio. Finally, we look at a couple that retired and earned millions by systematically playing and winning the lottery over a period of years. … [Read more...]
MNY122 Plus: Reconciling Different Market Views and Target Date Funds
This week on Money For the Rest of Us Plus we look at negative market outlooks from Crestmont Research and Real Vision TV and explore how to reconcile those bearish views with neutral investment conditions that suggest investors should keep their asset allocation in line with their long-term targets. We also look at target date funds and what to look for when investing in them. The episode length is 23 minutes. … [Read more...]
MNY071 Plus: Market Internals, Bear Markets and Sector Strategies
This week's Money For the Rest of Us Plus episode reviews the delay that occurs before the maximum drawdown after market internals deteriorate as they have currently. We also explore how retail investors could implement sector rotation strategies and answer additional Plus member questions. The episode length is 22 minutes. … [Read more...]
71: Please Don’t Panic
When the stock market is falling, understanding market history and current conditions can help us make objective, less fear-driven investment decisions. Photo by Scott Beale In this episode you'll learn: How the global system of time zones and dates developed.Why stock markets can plummet in value at the opening bell.What is the difference between a market order and a limit order.Why investing based on emotion is risky.Why it is difficult to consistently time market corrections.What … [Read more...]
Average Stock Market Losses During Bear Markets
This audio lesson discusses average U.S. stock market losses during both secular bear and cyclical bear markets. Average market losses for cyclical bears in secular bull markets. Average market losses for cyclical bears in secular bear markets. Why cyclical bears can be healthy. The episode length is 8 minutes. … [Read more...]
