Hi Everyone,
The quarter has gotten off to an auspicious start (after a terrible end to Q1) as earnings season came just in time to bring some welcomed good news to the markets. Just when things were going smoothly and most investor’s portfolios had gotten back into the green for the year…more volatility. To save yourselves some of the mental anguish, until the S&P 500 makes a new high above the March top of 2800, or makes a new low below February’s selloff of 2553, you shouldn’t even give this market another ounce of your attention. There will be fear mongering, followed by excitement, followed by confounding just like previous sideways markets. Instead of listening to people try and predict the future, let’s get a bit more knowledgeable about the past…
Happy Reading,
Adam
ARTICLES
The Drawbacks of Behavioral Finance – This is from the day before the February low (not a coincidence). Good stuff, from a brilliant writer, Ben Carlson.
Sometimes This Sucks – This is three trading days before the April low (again, not a coincidence).
The Freakishly Strong Base – This is a longer one about the power of compounding, but goes into the net worth of Warren Buffett and how it can be an illustration of why we should all have gotten started investing much earlier.
CHARTS AND GRAPHS
US Equities Still Expensive to the Rest of the World
Earnings vs. S&P 500 Price Chart
QUOTES OF THE WEEK
“The amount of energy necessary to refute bullshit is an order of magnitude bigger than to produce it.” – Alberto Brandolini