The Movie You MUST See If Your Money is in the Market

You probably already know – or at least strongly suspect – that Wall Street is rigged. And not in favor of the little guys and gals like us.

But this blog post should lay any doubt about that to rest…

Let’s start with the movie you must see if you have any money invested in the market (or need a reminder of why you yanked it out in the first place).

The Big Short is based on the New York Times best seller by Michael Lewis. The main characters are played by Brad Pitt, Ryan Gosling and Steve Carell.

the-big-shortIt recounts the story of a handful of Wall Street traders who (ultimately) made a fortune by betting against the mortgages that caused the housing bubble… and subsequent crash and Great Recession. [Read more…] “The Movie You MUST See If Your Money is in the Market”

Is risk a four letter-word?

Have you ever filled out one of those “what’s your risk tolerance” questionnaires to determine how much money you can accept or tolerate losing in the market?Risk, a four-letter word?

Brokers are now required to have you do this. Or you may have filled out a self-scoring one online. You know, ones that ask questions like what would you do if the market dropped 10% or 20%?

Well… it turns out these questionnaires are “unhelpful at best and harmful at worst,” according to experts on investing and the psychology of risk.1

Here’s why…

These questionnaires assume your risk tolerance is an integral part of who you are and no more changeable than your IQ or shoe size. But nothing could be further from the truth.

Researchers have shown that your tolerance for risk varies constantly, depending on literally thousands of factors. Studies show how much risk you’re really able to tolerate is associated with many factors such as: [Read more…] “Is risk a four letter-word?”

The dangers of fuzzy thinking about money

It often shocks me to see what passes for “journalism” these days in publications many people put their trust in, like the Wall Street Journal.

Slow and Steady Saving?A recent article in that publication titled, “Slow and Steady Saving Still Pays,” is a classic example of what happens when you use fuzzy thinking and math… and expect to convince readers of your position.

Sadly, I suspect many readers did lap this article up because, after all, it was published in the Wall Street Journal.  They wouldn’t lie to us or lead us astray, would they?!?

I don’t think this article was intentionally written to mislead you.  I believe the author has just been as brainwashed by Wall Street as most Americans have been.

So what ARE the problems with this article?

[Read more…] “The dangers of fuzzy thinking about money”

Dow 36,000? What were they smoking?

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Ten years ago this week, the book, “Dow 36,000: The New Strategy for Profiting from the Coming Rise in the Stock Market” was published.

dow_36000_1

It became a best-seller. And, according to a recent article in the Wall Street Journal titled “Lessons of a Bull Market That Never Happened” (9/20/09):

Back then, the only people subject to sustained derision on Wall Street were those who dissented. Anyone who warned that shares might disappoint was ignored. The few predicting a crash — let alone two — were considered cranks.

Yet, in spite of the current stock market rally – one of the steepest in history – the Dow is STILL below where it stood in September 1999!

How many times during those years were your hopes raised, only to be dashed again and again?

Wall Street has some “dirty little secrets” they don’t want you to know about, but I reveal them all here.

Interestingly, one of the authors of that book recently said he still believes the Dow will hit 36,000.  Meanwhile, there’s some guy now predicting the Dow will go down to 1,000!

What do YOU think will happen… and why? You can voice your thoughts below…