Behavior Gap Round Up, 3.6.09

03.06.2009

Some really amazing content made its way online this week. I hope it helps provide some perspective.
The Berkshire Hathaway 2008 Annual Letter
“Bubbles and Panics – “The investment world has gone from underpricing risk to overpricing it.” And “When the financial history of this decade is written, it will surely speak of the Internet bubble of [...]

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Things to Think About

03.04.2009

2009 has already given us a lot to think about. I have had some very interesting conversations with clients, readers, and friends about what to do now. Here are a few things to think about:

No one knew this was coming. I know that there are all sorts of folks claiming to have known, but really, [...]

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Cover to Cover: A Shock Felt Around the World

03.02.2009

“The Dow, now falling, is at 2103. Long lines of people form to take turns in the N.Y.S.E.’s spectator gallery. Heather Walker, 27, wants to “tell my grandchildren I was there.” But she wonders if the crash means she will never be a mother. “Even in good times, men are scared of getting married,” says [...]

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Behavior Gap Round Up, 2.27.2009

02.27.2009

We all need to take a deep breath. The amount of emotion circulating in the media is enough to feel overwhelming for even the most rational of investors. We’ve tried to keep this round up rational, to provide some perspective. And this weekend, forget the stock market. Turn it OFF. Go outside! Climb! Bike! Hike! [...]

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The Next Bubble

02.25.2009

Some things to consider:

The next bubble appears to be GOLD. Remember oil was over $140 in Sept ‘08, now it’s near $40. Please be careful. (link)
It could be argued that commodities are not an investment—they are a tool to speculate.(link)
“The global recession and worries about the stability of the financial system have sent the [...]

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The Volatile Housing Market

02.23.2009

The Economy’s Savior Turns Into Its Anchor>“It is somewhere to live; but a home is also, for many folk, a valuable asset. No wonder people love talking about house prices over the dinner table. In this economic recovery, however, homes have done much more than shelter people from wind and rain. They have helped to [...]

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Behavior Gap News Round Up, 2.20.09

02.20.2009

This week has been full of financial news and events. Here’s some things to think about over the weekend.
The Responsiveness Scorecard
So: is the Obama administration’s ARRA a 21st century Manhattan Project that will ignite smart growth?
Though wonks will discuss its imperfections to death, ARRA’s actually not a bad financial stimulus (here’s why) . Yet, even [...]

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The Wrong Tools

02.19.2009

Tools or processes used in financial planning often come from other industries (e.g., life insurance, banking, etc.). Sometimes using these tools to guide investment decisions is comparable to trying to “measure temperature with a ruler” (David Loeper). If you can’t see the audio player in your email or reader, click through to listen to podcast.

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Surprises

02.18.2009

Believe it or not, there are at least two kinds of surprises: bad ones and good ones. Both good and bad surprises have at least one thing in common: they happen when we least expect them.
Can you imagine trying to convince someone at the beginning of 2007 that over the next two years all these [...]

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The Topsy-Turvy Economy

02.16.2009

Setting Things Right> “Economists, proud and powerful in the 1960s, now look like Napoleon’s generals decamping from Moscow. Their past prescriptions —tax tinkering and Government deficit spending to prop up demand, wage and price guidelines to hold down inflation—have been as helpful as snake oil. “Things just do not work now as they used to,” [...]

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