Investments

Four Important Signs A Recession May Be Imminent

Well folks, the volatility is back again. There’s a growing chance of a recession after 11 Fed Rate hikes and now trade wars by the Trump administration. What’s worse, there might actually be stagflation, where inflation remains high while economic output declines. For those of you who’ve been consistently investing since 2009 or earlier, experiencing […]

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Home Country Bias Investing And Why It Can Be A Big Problem

All of us are patriots to some degree. However, it’s good to beware of home country bias to protect ourselves from unexpected risk. Home country bias refers to investors’ tendency to favor companies from their own country over those from other countries or regions. After all, it’s usually better to invest in what we know

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How To Live With Dead Money For A While Under Different Scenarios

Unfortunately, we may have to accept the reality of living with dead money for a while. The forecasts of lower expected returns in the stock market over the next decade may very well be coming true. As a result, we must adapt and think ahead. In this post, I’d like to discuss several suboptimal financial

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Five Financial Observations Since The Start Of The Ukraine War

Russia has invaded Ukraine. Unfortunately, there’s nothing much you or I can do except give our moral and financial support to the Ukrainian people and organizations trying to help. If you’re looking for a donation idea, check out World Central Kitchen, which is providing warm meals to Ukrainian refugees. Let us hope there is a

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How To Avoid Financial Fraud And Protect Your Investments

Are you aware of the risks you take online? Nearly half the U.S. population was impacted by identity fraud and financial fraud in 2020, responsible for $56B in losses. And the truth is, you’ve never been a bigger target. Technology is woven into our lives. From remote work to shopping to banking, we can send/receive

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A Stock Split Doesn’t Change Fundamentals But Could Boost Share Price

Are you excited about a stock split? Don’t be. A stock split is simply financial engineering. Some retail investors get tricked into thinking they’re getting a better deal than they really are. I still remember one of my VPs at Goldman making fun of an Associate one morning. The Associate excitedly shouted out to the

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Why Invest In Private Funds Even Though They Charge Higher Fees

I’ve been an investor in private funds, mostly venture capital since 2006. I invest up to 20% of my investable capital in venture capital, venture debt, and angel investing. This article will explain why I invest in private funds even though they charge higher fees. Investing in private funds does not come cheap. The management

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5 Things To Do With Lower Expected Returns Going Forward

With stock market volatility back, interest rates elevated, and high valuations, lower expected returns are a good possibility. Since 2009, investors have been able to make lots of money relatively easily. However, to expect double or triple-digit annual returns going forward is not wise. In August 2020, when I came out with the Financial Samurai

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