(4-minute read) As we head into the rest of the holidays, many people are worried about inflation and empty shelves for good reason. But here’s why we’re still optimistic for what’s ahead…
The news has been awash with details from the “Pandora Papers,” leaked secrets of the world’s super-rich. But one revelation wasn’t news to me. After all, I’ve published books about asset protection. That tidbit? That the biggest tax haven in the world is the United States! In today’s video, I reveal how unassuming South Dakota became the world’s leading place to hide wealth … fairly earned or not.
If you extend the stock market’s average return back 20 years, for example, it falls to 9.8%. That’s consistent with the long-term average over the last 200 years. To anyone whose stock trading experience spans the 12 years since the Great Financial Crisis (GFC), that may seem disappointingly low. But those 12 years are exceptional. Only one of them produced a negative return — 2018. Even then, the Federal Reserve Chairman Jay Powell-induced crash in the fourth quarter of that year immediately reversed in 2019, when the market rocketed 31.5%.Over the last two centuries, on the other hand, one out of every four years produces a negative return. That raises an important question for all investors. On what are your expectations for the next decade based? Could they be leading you into a trap?
The U.S. workforce isn’t back to full strength yet … but unemployment claims reached a record low in the first week of September.
To combat that emotional tendency, we must rely on our powers of reason.
But when I use reason to explain a particular stock decline, it can feel like special pleading.
It isn’t.
Every specific case of a newish company that’s declined in value shortly after its launch is just a variation on a broader theme.
History shows that not only do these things happen … they often don’t last.
Investors who understand that broader tendency go on to the big gains.
So today, let’s talk about their broader tendency … how do we know when to hold ‘em and when to fold ‘em?
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Chief Investment Strategist of Money & Markets
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