A Rich Life

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

Investing: The New Rules #10 — The Monster That Ate the U.S. Economy

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I’ve posted Entry #10 for my Investing: The New Rules column at the Death by 1,000 Papercuts site. It’s entitled The Monster That Ate the U.S. Economy.

Juicy Excerpt: Consider the alcoholic. He ruins his health. He loses his job. His money is washed down the drain. His wife walks out on him. His kids cannot stand him. Was there ever a moment in which he formed a deliberate intent to cause all this self-destruction? Of course not. The fellow was feeling a little down, he took a few extra drinks for the temporary comfort they brought him and then over time it became a habit. So it is with Buy-and-Hold and our economic crisis. No one planned to let stocks get overvalued by $12 trillion. The level of overvaluation that was certain to crash our economy just sort of snuck up on us, you know? These things happen from time to time down here in the Valley of Tears.

Investing: The New Rules #9 — Stocks Are Not Worth Buying Today

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I recently posted Entry #9 for my Investing: The New Rules column at the Death by 1,000 Papercuts site. It’s called Stocks Are Not Worth Buying Today.

Juicy Excerpt: There’s no guaranty that history will repeat exactly. But there’s good reason for anticipating that it will at least rhyme. It’s not an accident that times of insanely high prices have always brought on times of insanely low prices. Insanely high prices cause millions to believe that they possess far more in the way of real wealth than what they really do possess. That belief causes millions of bad financial decisions; bull markets make people spend more than they can afford to spend. When people realize that they have been making poor financial decisions for years or for decades, they panic. Panic causes insanely low stock prices.

Investing: The New Rules #3 — The Stock-Return Predictor

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I’ve posted the third entry of my Investing: The New Rules column at the Death by 1,000 Papercuts site. It’s entitled Harness the Power of the Stock-Return Predictor.

Juicy Excerpt: It’s simple, isn’t it? You pay attention to price when buying everything else you buy. You need to begin paying attention to price when buying stocks too. Regardless of what The Stock-Selling Industry tells you is best. The “experts” in The Stock-Selling Industry are telling you what is best for them. You need to start tuning out their marketing slogans with the aim of doing what is best for you.