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Dennis writing

Category: Behavioral

3 Retirement Mistakes Even Smart Investors Make

Experience is not the same as expertise. Confusing the two creates the potential for mistakes as smart investors approach retirement. In his book Outliers, Malcolm Gladwell popularized the idea that it takes 10,000 hours of experience to become an expert in a particular field. Smart investors spend thousands of hours saving and investing during their […]

High Value Decisions When Nearing Retirement

…The most optimistic psychology is always applied when things are thought to be going well, compounding and exaggerating the positives, and the most depressed psychology is applied when things are going poorly, compounding the negatives. This guarantees that extreme highs and lows will always be the eventual result in cycles, not the exception. Howard Marks, […]

Gaining Perspective in a Financial Crisis

“The three stages of a bull market: the first stage, when only a few unusually perceptive people believe things will get better, the second stage, when most investors realize that improvement is actually taking place, and the third stage, when everyone concludes things will get better forever.” Howard Marks, Mastering the Market Cycle The entire […]

Emerging From a Financial Crisis with No Regrets

We all feel caught off guard. The financial professional, the Do-It-Yourself investor, and the 401(k) participant three years from retiring. You might feel like only a few weeks ago you “coulda, woulda, shoulda” done something different with your investments. There is never enough safety when fear takes hold. If we had 10% in stocks a […]

Setting New Year Financial Expectations

We are at the start of a new decade. This means lists and reviews of the past year and ten years. Along with these retrospectives, we are treated to a healthy dose of predictions for what is to come (too often by financial gurus, unfortunately). This is click bait. An invitation to bog ourselves down in […]

The Things We Teach Ourselves

We all have hobbies that are self-taught. Maybe for you it is cooking, or gardening, or carpentry.  They are the skills we picked up by following our passions, maybe with some mentorship, but rarely with formal education. For me, guitar and golf are my self-taught hobbies, learned the hard way since my teenage years. Most […]

A Measure of Risk

There are two ways to measure investment performance: In percentages or in dollars. Which of the following feels worse? “I am down 5%” Or “I am down $50,000” For a $1,000,000 portfolio those are one and the same. However, much more frequently I hear down investment moves described in dollar terms. Why? Because it feels like […]

Thinking in Bets by Annie Duke

Sometimes the stock market has been referred to as a “casino”.  As investors, then, who better to learn from than a champion poker player like Ms. Duke?  Book Review: Thinking in Bets by Annie Duke Truthfully, Annie Duke has written a very well-researched book on the role of skill and chance in determining any outcome. […]