Weekend Reading for 5/12/2017
Can You Imagine?!
Earlier this year I came across an interview with Adele Martin, a successful financial advisor in Australia (XYPN Radio Podcast Ep #74). Adele discussed changes that Australia’s regulatory bodies have adopted in recent years to protect consumers from poor practices within the finance industry. I think the advisors down under are onto something. It is logical, transparent and will probably make a lot of heads explode…
Chart of the Week
After a disappointing first quarterly earnings report, Snap’s share price is in free fall. The company’s stock price was down 20 percent in early trading on Thursday and it’s getting dangerously close to dropping below its IPO price of $17 for the first time.
3 Good Reads
Pressure Doesn’t Have to Turn into Stress (Nicholas Petrie)
“Stress is caused not by other people or external events, but by your reactions to them. Pressure is not stress. But the former is converted to the latter when you add one ingredient: rumination, the tendency to keep rethinking past or future events, while attaching negative emotion to those thoughts.”
The Limits of Mean Reversion (Lawrence Hamtil)
“Common sense would dictate that behaviors will have to adapt to this new period of low yields that applies to every asset class by reducing expenses, limiting debt obligations, and saving more. It does not mean, in my view, to take drastic action with your portfolio by which I mean exiting U.S. equities altogether, or to perform the equity equivalent of what bond analysts deride as “reaching for yield” by going all-in on seemingly cheap markets such as those in the emerging world.“
Confidence Can Be Dangerous (Dan Egan)
“If there is one consistent bias in investing, is is overconfidence. Investors trade too much, try to market time to much, and have concentrated portfolios which expose them to significant risk of losing a lot of money. Fortunes are lost much faster than they are made, and while you might get lucky in the short term, you should probably be investing for the right (longish) term.”
Enjoy your weekend!