Interesting Reads

Ben Carlson

When markets reach highs, forecasts of a recession aren’t far behind. There’s always someone willing to give their prediction of the next downturn, hoping that they can be the one to say “I told you so” after the dust settles. If the talking heads have you contemplating moving to cash, consider this article from Ben Carlson. Not only is it hard to predict a recession, but even if you could, making money in the stock market from that information would be challenging.

https://awealthofcommonsense.com/2019/10/everything-you-need-to-know-about-recessions/

Josh Brown

Great article by Josh discussing the impossible task of picking active managers for your investment portfolio who will outperform their benchmark. While there are fund managers who outperform, it’s not the majority, and knowing which ones will outperform in advance is impossible. There are still many financial advisors today selling their clients on their ability to pick fund managers, often in an attempt to justify higher fees. Don’t be fooled, your advisor is not the exception.

Robin Powell

A summary of a recent interview with Nobel Prize winner Eugene Fama. Many of his points add to the evidence listed above in Josh’s article. 

Kiplinger

Neat chart showing the comparison in taxes across each state. Good to see Mississippi listed as “most favorable”.

https://www.kiplinger.com/tool/retirement/T055-S001-state-by-state-guide-to-taxes-on-retirees/index.php

Barry Ritholtz

It’s not just about price. Dividends make up a substantial portion of returns. Thankfully, technology has made it easy to reinvest dividends, something that wasn’t always so.