Tag: Risk
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Do You Know How You’re Influenced by Modern Portfolio Theory?
Almost everyone believes that you should diversify your assets – but there are different explanations about why. It is sometimes said (though how anyone would know is another story) that fish are not aware that they swim in water. Similarly, many investors today live in a world shaped by many…
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The End of the World?
Did you know the world almost ended in June? For real… The world as we know it may have come within hours of ending on June 29, 2024 when an asteroid, discovered only about one week before, passed closer to the earth than the moon is. A few hours difference…
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Nothing Runs Like a Deere – Should You Sell John Deere Stock?
John Deere is in the headlines because it has announced plans to eliminate about 600 jobs from three factories in the US.[1] This news attracted our attention, because we have seen selling over the past couple of years, including people using our Stock Diversification Trust to take large gains without…
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Tesla Without Musk? What Then?
When we last blogged about Tesla almost a year ago,[1] we advised “If Tesla won’t own the world, consider selling your shares.” Tesla was then trading at $269 per share. And since then, it doesn’t look like Tesla will own the world. Tesla shares closed on Friday at $178 each.…
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Can Smoking Be Good for Your Lifetime Budget?
Many anti-smoking advocates make the blanket claim that smoking is bad for your finances.[1] But are those claims justified? This blog entry is purely an exercise in analysis. Please do not read it as advocacy. My purpose here is merely to make clear the lifetime financial implications of a pack-a-day…
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Inflation Protection? Or Trap?
With inflation remaining “stubbornly high”[1] we today take a look at the usefulness, or lack thereof, of TIPS. Please don’t buy TIPS without reading this. TIPS stands for Treasury Inflation-Protected Bonds. The US Treasury describes TIPS thus (we added the “bold” fond for emphasis): Treasury Inflation-Protected Securities (TIPS) are marketable…
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Too Much Risk in US Farmland?
Investor money is pouring into US farmland.[1] That flood of investor money is helping to push farmland prices to record-high levels, and farmland investment yields (as opposed to crop yields) are being pushed to record low levels. For people who have owned farmland for a long time, these factors mean…