Jim Boswell Blog | I Love Finance | TalkMarkets
Executive Director, Quanta Analytics
Contributor's Links: Globanomics
Author of Globanomics. Jim has nearly fifty years of professional experience in the development of management information and analytical business decision support systems. Broadly disciplined with exceptional experience. Education includes an MBA from the Wharton School-University of Pennsylvania, ...more

I Love Finance

Date: Friday, March 10, 2023 5:29 AM EST

I flipped over to "yahoo finance" just to check things out for a moment and i saw a message that said: "the Construction numbers are key to interpreting the Friday's Job report".

The reason i like finance so much is because there is always "something" that is going to determine the general opinion of the investors--whether it be Jerome Powell, the GDP numbers, the job report, etc. etc. etc.   Sometimes if Warren Buffet sneezes funny, the markets shift.

Invest in index funds, people.  Put your money there and don't listen to the daily goings on in the financial world.  And the best index funds are those that either tie to the S&P 500 or a very good subset of the S&P 500.  These index funds are safer and overtime they will provide you higher than normal growth--and probably beating those monkeys that are throwing darts at the financial market wall.

Global index funds would also be a good investment--safer even than the S&P 500.  They might not pay off quite as well, but over the long term they will come in better than "inflation".  Investments in stocks will beat investments in bonds over the long term.  Bonds tend to be safer that stocks, but bonds should return near "inflation" results--stocks should return better than "inflation" results.

As you grow older, every financier will tell you to shift some of your stock investments to bond investments to protect yourself from a catastrophe that could wipe you out.  That is good advice; however, i would say this as a counter.

Without a war, pandemic, or other stupid catastrophe (like the one we had in 2008--that shouldn't have been a catatsrophe, but was turned into one because the people in charge did not have a clue)--the stock market should be positive.  With a catastrophe, losses as much of 50% of your monies can happen.  The thing is this.  If you can take a 50% hit and can wait two-years for that 50% loss be regained, then i would say "stay heavily in invested in stocks".  If you cannot even think of losing 50% of your monies in a given time, then i think i would blend my portfolio with both stocks and bonds.

On the longer term, bonds will keep you up with inflation.  On the longer term, stocks will keep you ahead of inflation--and that is the true goal of finance--to make more than what inflation eats up otherwise.  You never want the case to be that you are making less than the cost of inflation.  That's what bonds and stocks are for.

Of course, before you get too heavily into stocks and bonds, your first main investment should be in your "home"--your castle.  But homes are not meant to be used for gambling purposes--like both stocks and bonds are.  We have made that mistake in the past, so keep that in mind, too.

ps.  I thought most of the construction that was being done these days was from a contingency of "undocumented, alien, non-citizen Hispanics".  I wonder how that number is represented in the Construction numbers.  Do they count or not count--that is the question.

 

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Alexis Renault 1 year ago Member's comment

I'm rarely on Yahoo Finance but I happened to spot a TalkMarkets article over there, which was impressive. Didn't realize they were ever up there.  Have they ever published you?

Jim Boswell 1 year ago Author's comment

I don't think so.  First of all, Talkmarkets does not let me write any articles any more.  They thought i had been a "bad boy" and Talkmarkets took that ability away from me.

Sorry, to say, but my visibility remains you and a few "less than fifteen" other dedicated followers of my "meaningless blogging".

Some people think that my "globanomics" is too controversial--that's the only conclusion that i have been able to come up with.

ps.  I am glad to see that you are still hanging in there.

ps1.  i have found an ocassional blog or two of mine on the internet, but not many, because it usually takes a little up front explanation, and tagging the article with "key words".  And i only bothered with that a long time ago.

Old Time Investor 1 year ago Member's comment

I don't think it's too controversial, it simply hasn't caught on.  It's like the old Betamax and VHS war.  I had a Betamax because it was clearly superior.  But forwhatever reason, it was VHS which cornered the market and the Betamaxs were ignored and eventually became obsolete.  But you never know what it will take to finally catapult something past the tipping point.  Sometimes it's just luck.

Jim Boswell 1 year ago Author's comment

It's rather difficult to replace an "optimal" theory with a "sub-optimal" theory  because sooner or later the "optimal" theory will win out.