I’ve experienced three major market declines as an advisor (1999, 2003 and 2008) and countless minor dips that last weeks to months. Although my clients remained invested, many claimed they “lost” money through this process. I maintain the only money they lost was the money they didn’t invest. This article may help you with this “mental accounting” of loss with a story about an Oklahoma born high school graduate that “lost” 12 Billion dollars – that’s US $!
This is a fascinating article on interest rates and why they rise a fall – in a nutshell, the author suggests that supply and demand is the reason. It has to do with demographics and this explanation is one of the most reasonable for why interest rates rose in the early 80’s and why interest rates are so low now – and likely will stay there for a while yet.
We all need to appreciate passwords security. Scott gives us some simple ways to create a password that can’t be hacked!