A Rich Life

The Old Ideas on Saving & Investing Don't Work -- Here's What Does

Podcast #89 — The Equity Risk Premium Explained! (Perhaps)

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I’ve added Podcast #89 to the “RobCasts” section of the site. It’s called The Equity Risk Premium Explained! (Perhaps)

Academics have long been puzzled by the 6.5 percent real return paid to long-term stockholders; they say that the risk premium is too high. It may be that the reason why the nominal risk premium is so high is that only a small percentage of stockholders (Rational Investors) earn the average return or better in the real world; most investors follow a Passive Investing approach and are forced to sell in the huge price crashes that result when highly emotional strategies become popular.

Podcast #88 — Predicting Presidential Success Using P/E10

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I’ve added Podcast #88 to the “RobCasts” section of the site. It’s called Predicting Presidential Success Using P/E10.

When P/E10 is low, the odds are better that the economy will be flooded with funny money from temporary stock-market gains. That makes the economy look better for a time and gives a president political running room on other issues.

Podcast #84 — Liberals Both Love and Hate Rational Investing, and It’s the Same with Conservatives

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I’ve added Podcast #84 to the “RobCasts” section of the site. It’s called Liberals Both Love and Hate Rational Investing, and It’s the Same with Conservatives.

Passive Investing contributes to income inequality. That concerns liberals. Passive Investing also causes economic breakdowns. That concerns conservatives. What we allow people to know about investing is a political issue. But it is not one re which the usual partisan divide applies.

Podcast #81 — Why Stocks Let You Down, and How to Make Sure It Never Happens Again

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I’ve added Podcast #81 to the “RobCasts” section of the site. It’s called Why Stocks Let You Down, and How to Make Sure It Never Happens Again.

You should have been more skeptical when the “experts” told you that it was okay to ignore price when buying stocks. That’s an idea with a long history of causing huge amounts of human misery.