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Wealth Building Strategies

Is Today's Market More Volatile Than in the Past?

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Posted by The Motley Fool

on Wednesday, 24 February 2016 11:16

motleyA Motley Fool member asked a great question during a Q&A session at a gathering in San Diego last week:

"With the bigger presence of media talking about the markets and the hyperactivity of trading by computers, do you see this higher volatility as a more permanent reality for the markets?"

I like this question because the amount of media attention and computer trading is unquestionably higher today than the past. It worries a lot of people. 

But the premise of the question — whether there is more volatility today compared to the past — is a separate issue. And the answer might surprise you.

In response to the question I said that I suspected, without looking at the data, that ...

 

  • Hour-to-hour, day-to-day, market volatility is indeed higher now than it was in the past.
  • Month-to-month, year-to-year, I didn't think volatility is higher now than it's been for most of history.

 

But that was a guess. So I crunched the numbers this week and ... CLICK HERE to read the complete article



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Wealth Building Strategies

Advisers not Salesmen

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Posted by Paul Philip

on Thursday, 18 February 2016 11:32

advisersA big clue that you may not be talking to the right investment professional? If they only talk about money. Counter-intuitive, but what you're really looking for is someone more interested in you and what you’re trying to achieve than they are in your money. So a big test is... CLICK HERE to watch the video

The Evidence-Based Investor Video series is a service provided by Paul Philip and the team at Financial Wealth Builders Securities

 



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Wealth Building Strategies

Hope

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Posted by Richard Russell - Dow Theory Letterss

on Thursday, 11 February 2016 08:27

UnknownHOPE: It's human nature to be optimistic. It's human nature to hope. Furthermore, hope is a component of a healthy state of mind. Hope is the opposite of negativity. Negativity in life can lead to anger, disappointment and depression. After all, if the world is a negative place, what's the point of living in it? To be negative is to be anti-life.

Ironically, it doesn't work that way in the stock market. In the stock market hope is a hindrence, not a help. Once you take a position in a stock, you obviously want that stock to advance. But if the stock that you bought is a real value, and you bought it right -- you should be content to sit with that stock in the knowledge that over time its value will out without your help, without your hoping.

So in the case of this stock, you have value on your side -- and all you need is patience. In the end, your patience will pay off with a higher price for your stock. Hope shouldn't play any part in this process. You don't need hope, because you bought the stock when it was a great value, and you bought it at the right time.

Any time you find yourself hoping in this business, the odds are that you are on the wrong path -- or that you did something stupid that should be corrected.

Unfortuneately hope is a money-loser in the investment business. This is counter-intuitive but true. Hope will keep you riding a stock that is headed down. Hope will keep you from taking a small loss and instead, allowing that small loss to develop into a large loss.

In the stock market hope get in the way of reality, hope gets in the way of common sense. One of the first rules in investing is "Don't take the big loss." In order to do that, you've got to be willing to take a small loss.

If the stock market turns bearish, and you're staying put with your whole position. and you're HOPING that what you see is not really happening – then welcome to poverty city. In this situation, all your hoping isn't going to save you or make you a penny. In fact, in this situation hoping is the devil that bids you to sit -- while your portfolio of stocks goes down the drain.

In the investing business my suggestion is that you avoid hope. Forget the siren, hope -- instead embrace cold, clear reality.



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Wealth Building Strategies

How to Win the Loser's Game - Part 6

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Posted by Sensible Investing TV

on Tuesday, 09 February 2016 16:18

So, how can ordinary investors apply the academic evidence - the lessons learned from more than a hundred years of rigorous research? How can they apply that to achieving their financial goals?

Well, this might sound dramatic, but the work of Louis Bachelier, and of Nobel Prize-winners like Samuelson, Sharpe and Fama, should make us question almost everything we thought we knew about investing; and almost everything the financial industry and the media tell us we should be doing. Let’s watch….

“If you are serious about investing and building wealth the video documentary series ‘How To Win The Losers Game” is a must see. It’s excellent. 

After watching the video if you want to learn more about better low-cost, long-term, low-maintenance, diversified investment strategies, download our free guide “12 Essential Ideas For Building Wealth” by clicking on the banner at the top of this page.

Paul Philip, Financial Wealth Builders Securities

passive

 

 

 



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Wealth Building Strategies

Can We Expect Lower Returns In The Future?

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Posted by Paul Philip

on Friday, 22 January 2016 10:27

buffett futureIf you have invested for any length of time, you will have heard the expression "Past results are not an indication of future performance." The best in our industry not only agree with that but some feel that in the coming years we should prepare ourselves for lower returns than we are used to. If the markets are indeed prepared to not be as generous, then keeping fees as low as possible has never been more important. We need to keep as much of the overall return as possible... CLICK HERE to watch the video

The Evidence-Based Investor Video series is a service provided by Paul Philip and the team at Financial Wealth Builders Securities



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