I don’t want to lose half my money!

Last year, Warren Buffett told Berkshire Hathaway shareholders that “losses of 50% or more are not only possible, but inevitable in the future.”  Based on the context of the letter, his warnings seem to imply that he was looking at 2019 to 2020 as a period of high risk.  He was not specific, but there […]

The Need for a Defensive Investing Strategy in 2018 and 2019

In my article on June 22, I warned of potential stock market risk ahead and suggested that it was time to lower risk and become more defensive. The five experts I quoted were all warning of an outright stock market and bond market collapse. None have backed away from those predictions. This last month or […]

Retiring in the Gig Economy

A gig economy is an environment in which temporary positions are common, and organizations contract with independent workers for short-term engagements. The workplace and many jobs are moving into the gig economy.  In this digital age, the workforce is increasingly mobile and work can be done from anywhere, giving workers the flexibility and lifestyle they desire. Working in the […]

A Stock Market Crash in 2020?

  Yes, according to the “experts”.  These “experts” understand economic and stock market cycles.  The overriding tone of each is that the current 10 year period of economic gains is coming to an end.  No one, including these men, knows the exact month the market will begin its decline.  However, in viewing all of these […]

Investing Lessons from Warren Buffett

Those saving for retirement should ask two questions: Is my rate of return meeting my expectations? If/when the market collapses, what protections do I truly have in place to protect my assets? Traditional models don’t seem to be working like they used to Traditional investment models typically employ some version of Modern Portfolio Theory (MPT).  […]

How Do You Respond to Stock Market Risk?

Stock market risk has increased significantly this year.  The Dow Jones Industrial Average fell 3083 points (over 11%) from January 26 to March 23.  Stocks have continued on a rough ride since. When sharp stock market declines have happened in the past, have you heard financial advisors have say things like, “You can’t time the market”, “You […]

Managing Stock Market Risk

There are several types of risks an investor faces and hopes to mitigate when he or she invests in the stock and bond markets.  I believe they are as follows. Stock Risk Buying individual stocks is an option available to investors.  This approach contains risk that is known as individual stock risk and encompasses the […]

What would Hyman Minsky say about this stock market?

Hyman Minsky, a well-known 20th century US economist, was professor of macroeconomics at Washington University in St. Louis and a distinguished scholar at Levy Economics Institute at Bard College.  He is best known for developing his financial instability hypothesis.  Minsky stated that the greater the stability of the stock market, the greater the instability that […]

If Hindsight is 20/20, what is Foresight?

In my article of December 20, 2017, I was urging investors to take a more cautious approach to investing in 2018.  For those in retirement or nearing retirement, traditional asset allocation did little to protect portfolios from decline in the last two weeks.  Many revere Warren Buffett.  Think about how much risk he was taking, […]

The Value of Tactical Investing in a Falling Stock Market

When the stock market begins to fall, investors ask, “How do I protect my investment?” it is not as simple as just selling everything and sitting in money market.  First, this could trigger long-term or short term capital gains.  Second, this market correction could be brief and one would miss the opportunity for future potential […]