New Market highs. North Korean drama. Investing basics. And some more concise and quality reads for you awesome folks! Plus it’s hilarious (as usual)….
December 22 Monday Evening Reads
The S&P 500 broke historical highs today after the Federal Reserve announced last week that they are still going to take a “significant” amount of time before raising interest rates. Further discouraging Fed tightening is the decline in oil prices which has led to a decrease in inflation, which has already been hovering just below Yellen & company’s 2% target. In my previous post from a month ago, I highlighted my concerns with an interest rate hike. I guess Janet Yellen took my advice…… KIDDING.
In the five & a half year monetary stimulus the Federal Reserve has graced the United States economy with, the S&P 500 has tripled. Read more on Bloomberg
North Korea is bitter today after their internet access went dark from an apparent response by the United States to the Sony hack. North Korea apparently can’t stand having a movie making fun of their glorious country and leader without getting irritated enough to hack Sony and threaten violence if the movie, (the Interview) is released. Imagine the North Korean Pillsbury Doughboy (Kim Jong Un)’s head exploding when Seth Rogen cracks jokes about him.
Read the full story on Bloomberg. But I think Mike Myers’s interpretation is more accurate as Dr. Evil appeared on SNL last Saturday to give us the situation summary from a villain’s perspective.
Oh boy, good laugh.
Revert your attention back to the market. I attended several conferences over the past 4 months, and listened to many portfolio managers talking about active investment via their top-of-the-line, best product, highest performing mutual fund has done and will continue to outperform the competition. For whatever clever and biased reason they created to explain their fund’s circumstances.
Welp. Only 85% of active equity managers have outperformed the S&P 500 this year…. Plus after they take management fees from your pockets, should you choose to invest in their fund, your return is even lower.
People, don’t fall for this foolishness. Please. If you want to get the ground back under your investment foundation, seriously check out this article by Barry Ritholtz. Ten concepts to get back to basics, as we all should Via Washington Post
Only 3 days until Christmas. I hope Santa has gotten all your letters, as well as mine instructing him to send all your gifts you have requested instead to me.
Just kidding. Happy holidays friends!