Yesterday’s news of the Pfizer vaccine may well be the emotional highlight of 2020. It certainly put a big smile on my face, notwithstanding an otherwise challenging day at work. A triumph of good over evil. Of human ingenuity over a nasty, deadly illness. Of progress over yet another temporary setback. The markets reacted accordingly. …
About ten years ago, I attended an investment conference that brought together students and faculty from a number of MBA programs on the East Coast. Eugene Fama was one of the keynote speakers at the event. This was a few years before he won the Nobel Prize, but it’s fair to say that he was …
Want to learn a guaranteed way to never, ever lose money in the stock market? Then today’s post is for you. Those who have read about the magic money machine will remember this graph: It’s a good representation of the random walk the stock market follows every single year. Some years are great. Some are …
Back in late February (which now feels like a lifetime ago), a colleague and I were chatting about the stock market. The S&P had just gone down through the 3,000 mark. The said colleague, who happens to be a very thoughtful person, mentioned that he was worried about the prospects of a pandemic and had …
If one were to distill the most contentious question in stock market investing, it would boil down to this: “What is a reasonable expectation for stock market returns going forward?” Your take on the question above impacts a multitude of things. First and foremost, it drives your asset allocation decisions. Do you go all-in on …
To say that 2020 has been an eventful year would be an understatement. A once-in-a-century worldwide pandemic led to unprecedented levels of government and central bank intervention. In turn, the combination of a macro shock with the fiscal and monetary response has led to some pretty interesting developments in the capital markets. While my own …
How Have Various Asset Classes Performed in 2020? Read More »
You may have noticed that as of last week, we are back to regularly scheduled, twice-weekly programming here at Banker On Fire. Two weeks in Spain flew by. It wasn’t a relaxing holiday by a stretch – a toddler, an infant, and a stream of work emails and calls saw to it. No chilling out …
Not too long ago, one of my readers posed an interesting question in the comments section of this blog. Essentially, it boiled down to this: I am using the stock market for long-term wealth building and my goal would be to FIRE, hopefully, within 15-20-25 years. I have recently read the book “Your Money or …
