Every tire has an optimal pressure per square inch. Overinflate your tires and you end up with bald spots in the middle of them and you can slide out of control. Underinflate your tires and you get poor gas mileage and increased risk of a flat tire.
Economies work the same way. Overinflate an economy and prices spiral out of control. Underinflate an economy and you risk a flat that impedes your progress.
When your family takes a long road trip you can likely predict the overall attitude of the clan upon arrival based on two key ingredients: time and distance travelled.
While most families are really close, an extended period of time in close quarters can sometimes drive them apart. Quirky habits become annoyances. Conversations can run in circles. Games can run out of gas.
Is it better to have high expectations with the greater potential of disappointment or low expectations with the greater potential of pleasant surprises?
With the end of March approaching, it is a good chance to step back and reflect on whether the first three months of 2018 met our expectations.
Sometimes the experts are wrong.
Theoretically the NCAA basketball tournament committee selects the best college basketball teams in the country and seeds them based on their accomplishments over the course of their season.
But theory hits reality once the tournament starts. Just because a team had a great season does not guarantee it will have a great game when it is needed most in a single elimination tournament. Past performance does not guarantee future results.
This coming Saturday, March 17, will be a day of celebration for Americans that trace their roots back to Ireland. More than likely some Irish imposters who wish they could trace their roots back to Ireland will also participate in the festivities as well.
But most revelers aren’t celebrating what they think they are and would likely fail an Irish background test.
This week Friday the current bull market will celebrate its golden birthday. It will turn 9 years old on March 9. Time to celebrate!
This is now one of the oldest bull markets to ever live. Does this bull have the strength to make it to a record-breaking age 10? We will know by this time next year.
Most folks don’t view the financial markets as an epic battle between equity investors (stock market) and debt investors (bond market) anymore. Memories of past skirmishes have faded over the last 10 years as the battle lines have not moved since the Great Recession.
However, long-term institutional investors remember the past and may be rekindling the battle.
On February 8 the S&P 500 closed more than 10% below its record high, something that had not happened since February 19, 2016.
It was a quick tumble from the record high set on January 26, and there are plenty of suspects in the tripping. Fears of higher interest rates, higher inflation, automated trading programs, and higher government spending are among them.
Two weeks ago our blog focused on the gifts that Mr. Market has given us over the last year or so. We admired his generosity over last 12 months with the following cautionary statement:
“We also know that Mr. Market will at some point likely take some of his gifts back. We just don’t know when. It could be tomorrow, it could be next month, or it could be in a few years.”
Jim Rohn: “Discipline is the bridge between goals and accomplishments.”