U.s. Stock Quotes

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But depression wasn't the word. This was a plunge encompassing sorrow and revulsion far beyond the personal: a sick, drenching nausea at all humanity and human endeavor from the dawn of time. The writhing loathsomeness of the biological order. Old age, sickness, death. No escape for anyone. Even the beautiful ones were like soft fruit about to spoil. And yet somehow people still kept fucking and breeding and popping out new fodder for the grave, producing more and more new beings to suffer like this was some kind of redemptive, or good, or even somehow morally admirable thing: dragging more innocent creatures into the lose-lose game. Squirming babies and plodding, complacent, hormone-drugged moms. Oh, isn't he cute? Awww. Kids shouting and skidding in the playground with no idea what future Hells await them: boring jobs and ruinous mortgages and bad marriages and hair loss and hip replacements and lonely cups of coffee in an empty house and a colostomy bag at the hospital. Most people seemed satisfied with the thin decorative glaze and the artful stage lighting that sometimes, made the bedrock atrocity of the human predicament look somewhat more mysterious or less abhorrent. People gambled and golfed and planted gardens and traded stocks and had sex and bought new cars and practiced yoga and worked and prayed and redecorated their homes and got worked up over the news and fussed over their children and gossiped about their neighbors and pored over restaurant reviews and founded charitable organizations and supported political candidates and attended the U.S. Open and dined and travelled and distracted themselves with all kinds of gadgets and devices, flooding themselves incessantly with information and texts and communication and entertainment from every direction to try to make themselves forget it: where we were, what we were. But in a strong light there was no good spin you could put on it. It was rotten from top to bottom.
Donna Tartt (The Goldfinch)
The U.S. stock market now trades inside black boxes, in heavily guarded buildings in New Jersey and Chicago.
Michael Lewis (Flash Boys)
The U.S. stock market was now a class system, rooted in speed, of haves and have-nots. The haves paid for nanoseconds; the have-nots had no idea that a nanosecond had value.
Michael Lewis (Flash Boys)
Nearly a Valediction" You happened to me. I was happened to like an abandoned building by a bull- dozer, like the van that missed my skull happened a two-inch gash across my chin. You were as deep down as I’ve ever been. You were inside me like my pulse. A new- born flailing toward maternal heartbeat through the shock of cold and glare: when you were gone, swaddled in strange air I was that alone again, inventing life left after you. I don’t want to remember you as that four o’clock in the morning eight months long after you happened to me like a wrong number at midnight that blew up the phone bill to an astronomical unknown quantity in a foreign currency. The U.S. dollar dived since you happened to me. You’ve grown into your skin since then; you’ve grown into the space you measure with someone you can love back without a caveat. While I love somebody I learn to live with through the downpulled winter days’ routine wakings and sleepings, half-and-half caffeine- assisted mornings, laundry, stock-pots, dust- balls in the hallway, lists instead of longing, trust that what comes next comes after what came first. She’ll never be a story I make up. You were the one I didn’t know where to stop. If I had blamed you, now I could forgive you, but what made my cold hand, back in prox- imity to your hair, your mouth, your mind, want where it no way ought to be, defined by where it was, and was and was until the whole globed swelling liquefied and spilled through one cheek’s nap, a syllable, a tear, was never blame, whatever I wished it were. You were the weather in my neighborhood. You were the epic in the episode. You were the year poised on the equinox.
Marilyn Hacker (Winter Numbers: Poems)
Reg NMS was intended to create equality of opportunity in the U.S. stock market. Instead it institutionalized a more pernicious inequality. A small class of insiders with the resources to create speed were now allowed to preview the market and trade on what they had seen.
Michael Lewis (Flash Boys)
Morgan then formed the U.S. Steel Corporation, combining Carnegie’s corporation with others. He sold stocks and bonds for $1,300,000,000 (about 400 million more than the combined worth of the companies) and took a fee of 150 million for arranging the consolidation. How could dividends be paid to all those stockholders and bondholders? By making sure Congress passed tariffs keeping out foreign steel; by closing off competition and maintaining the price at $28 a ton; and by working 200,000 men twelve hours a day for wages that barely kept their families alive. And so it went, in industry after industry—shrewd, efficient businessmen building empires, choking out competition, maintaining high prices, keeping wages low, using government subsidies. These industries were the first beneficiaries of the “welfare state.
Howard Zinn (A People's History of the United States: 1492 to Present)
In 1950, individual investors held 92 percent of U.S. stocks and institutional investors held 8 percent. The roles have flipped, with institutions, now holding 70 percent, predominating, and individuals, now holding 30 percent, playing a secondary role. Simply put, these institutional agents now collectively hold firm voting control over Corporate America. (I
John C. Bogle (The Clash of the Cultures: Investment vs. Speculation)
But you just watch, little girl. I'm goin' to show 'em. In five years they'll come crawlin' to me on their bellies. I don't know what it is, but I got a kind of feel for the big money.
John Dos Passos (The Big Money (U.S.A., #3))
Would you believe me if I told you that there’s an investment strategy that a seven-year-old could understand, will take you fifteen minutes of work per year, outperform 90 percent of finance professionals in the long run, and make you a millionaire over time?   Well, it is true, and here it is: Start by saving 15 percent of your salary at age 25 into a 401(k) plan, an IRA, or a taxable account (or all three). Put equal amounts of that 15 percent into just three different mutual funds:   A U.S. total stock market index fund An international total stock market index fund A U.S. total bond market index fund.   Over time, the three funds will grow at different rates, so once per year you’ll adjust their amounts so that they’re again equal. (That’s the fifteen minutes per year, assuming you’ve enrolled in an automatic savings plan.)   That’s it; if you can follow this simple recipe throughout your working career, you will almost certainly beat out most professional investors. More importantly, you’ll likely accumulate enough savings to retire comfortably.
William J. Bernstein (If You Can: How Millennials Can Get Rich Slowly)
If you buy an S&P 500 index fund, your investment is highly diversified and its performance will match that of 500 leading U.S. corporations' stocks. Is it possible to lose all of your money? Yes, but the odds of that happening are slim and none. If 500 leading U.S. corporations all have their stock prices plummet to zero, the value of your investment portfolio will be the least of your problems. An economic collapse of that magnitude would make the Great Depression look like Lifestyles of the Rich and Famous.
Taylor Larimore (The Bogleheads' Guide to Investing)
In early October 2008, after the U.S. government had stepped in to say it would, in effect, absorb all the losses in the financial system and prevent any big Wall Street firm from failing, Burry had started to buy stocks with enthusiasm, for the first time in years.
Michael Lewis (The Big Short)
The Algo Wars were leaving a path of destruction in their wake. “HFT algos reduce the value of resting orders and increase the value of how fast orders can be placed and cancelled,” wrote Nanex researcher Eric Hunsader. “This results in the illusion of liquidity. We can’t understand why this is allowed to continue, because at the core, it is pure manipulation.
Scott Patterson (Dark Pools: The Rise of the Machine Traders and the Rigging of the U.S. Stock Market)
As we’ll see, the 4% Roman rate of return is about the same as the aggregate return on capital (when stocks and bonds are considered together) in the U.S. in the twentieth century, and perhaps even a bit more than the aggregate return expected in the next century. (The 4% Roman rate was gold-based, so the return was a real, that is, after-inflation, return.) The
William J. Bernstein (The Four Pillars of Investing: Lessons for Building a Winning Portfolio)
The morning of the offering, NYSE officials on the floor passed out silver bells emblazoned with NYX on the handle. Traders were told to ring them with abandon at the open. While they were billed as a shiny memento, their true purpose—to drown out the expected chorus of boos and catcalls from disaffected specialists—spoke volumes about the turmoil behind the scenes.
Scott Patterson (Dark Pools: The Rise of the Machine Traders and the Rigging of the U.S. Stock Market)
People gambled and golfed and planted gardens and traded stocks and had sex and bought new cars and practiced yoga and worked and prayed and redecorated their homes and got worked up over the news and fussed over their children and gossiped about their neighbors and pored over restaurant reviews and founded charitable organizations and supported political candidates and attended the U.S. Open and dined and travelled and distracted themselves with all kinds of gadgets and devices, flooding themselves incessantly with information and texts and communication and entertainment from every direction to try to make themselves forget it: where we were, what we were. But in a strong light there was no good spin you could put on it. It was rotten top to bottom. Putting your time in at the office; dutifully spawning your two point five; smiling politely at your retirement party; then chewing on your bedsheet and choking on your canned peaches at the nursing home. It was better never to have been born—never to have wanted anything, never to have hoped for anything. And all this mental thrashing and tossing
Donna Tartt (The Goldfinch)
Unlike most other health-care systems in the world, health care in the United States is largely profit driven. The reconstruction of the U.S. medical system around managed care led to the closure of hundreds of hospitals across the country,697 leaving many cities with little surge capacity to deal with an abnormal influx of patients.698 HMO corporate stock profiles can ill afford to provide extra beds and ventilators for some indeterminate future surge of patients.
Michael Greger (How to Survive a Pandemic)
The orders resting on BATS were typically just the 100-share minimum required for an order to be at the front of any price queue, as their only purpose was to tease information out of investors. The HFT firms posted these tiny orders on BATS—orders to buy or sell 100 shares of basically every stock traded in the U.S. market—not because they actually wanted to buy and sell the stocks but because they wanted to find out what investors wanted to buy and sell before they did it. BATS, unsurprisingly, had been created by high-frequency traders.
Michael Lewis (Flash Boys)
Printing dollars at home means higher inflation in China, higher food prices in Egypt and stock bubbles in Brazil. Printing money means that U.S. debt is devalued so foreign creditors get paid back in cheaper dollars. The devaluation means higher unemployment in developing economies as their exports become more expensive for Americans. The resulting inflation also means higher prices for inputs needed in developing economies like copper, corn, oil and wheat. Foreign countries have begun to fight back against U.S.-caused inflation through subsidies, tariffs and capital controls; the currency war is expanding fast.
James Rickards (Currency Wars: The Making of the Next Gobal Crisis)
People gambled and golfed and planted gardens and traded stocks and had sex and bought new cars and practiced yoga and worked and prayed and redecorated their homes and got worked up over the news and fussed over their children and gossiped about their neighbors and pored over restaurant reviews and founded charitable organizations and supported political candidates and attended the U.S. Open and dined and travelled and distracted themselves with all kinds of gadgets and devices, flooding themselves incessantly with information and texts and communication and entertainment from every direction to try to make themselves forget it: where we were, what we were.
Donna Tartt (The Goldfinch)
So Germany can’t pay France and Britain and France and Britain can’t pay America because the Gold Standard says money = gold and America already has all the gold. But America won’t forgive the loans so Germany starts printing dumpsters full of money just to keep up appearances until one U.S. dollar is worth six hundred and thirty BILLION marks. There’s so much cash, kids are building money forts it is tragic/pimp as hell. Britain does convince America to go easy and lower the interest rates on the loans but in order to do that America has to lower ALL THE INTEREST RATES so everybody back in the U.S. is like “SWEET FREE MONEY BETTER USE IT TO BUY STOCKS” and they just go nuts the whole stock market goes completely bonkers shoe-shine boys are giving out hot tips hobos have stock portfolios and the dudes in charge are TERRIFIED because they know that at this point the market is just running on bullshit and dreams and real soon it’s gonna get to that part in the dream where you’re naked at your tuba recital and you never learned to play the tuba. There are other people who are like “NAW THE MARKET WILL BE GREAT FOREVER PUT ALL YOUR MONEY IN IT” but you know what those people are? WRONG. WRONG LIKE A DOG EATING MAYONNAISE. The market goes down like a clown and a bunch of people lose a bunch of money. It happens on a Tuesday and everybody calls it Black Tuesday and then it happens again on Black Thursday also Black Monday. Everyone is so poor they have even pawned their creativity.
Cory O'Brien (George Washington Is Cash Money: A No-Bullshit Guide to the United Myths of America)
Kids shouting and skidding in the playground with no idea what future Hells awaited them: boring jobs and ruinous mortgages and bad marriages and hair loss and hip replacements and lonely cups of coffee in an empty house and a colostomy bag at the hospital. Most people seemed satisfied with the thin decorative glaze and the artful stage lighting that, sometimes, made the bedrock atrocity of the human predicament look somewhat more mysterious or less abhorrent. People gambled and golfed and planted gardens and traded stocks and had sex and bought new cars and practiced yoga and worked and prayed and redecorated their homes and got worked up over the news and fussed over their children and gossiped about their neighbors and pored over restaurant reviews and founded charitable organizations and supported political candidates and attended the U.S. Open and dined and travelled and distracted themselves with all kinds of gadgets and devices, flooding themselves incessantly with information and texts and communication and entertainment from every direction to try to make themselves forget it: where we were, what we were. But in a strong light there was no good spin you could put on it. It was rotten top to bottom. Putting your time in at the office; dutifully spawning your two point five; smiling politely at your retirement party; then chewing on your bedsheet and choking on your canned peaches at the nursing home. It was better never to have been born—never to have wanted anything, never to have hoped for anything.
Donna Tartt (The Goldfinch)
But do you know what happened during this period? Where do we begin ... 1.3 million Americans died while fighting nine major wars. Roughly 99.9% of all companies that were created went out of business. Four U.S. presidents were assassinated. 675,000 Americans died in a single year from a flu pandemic. 30 separate natural disasters killed at least 400 Americans each. 33 recessions lasted a cumulative 48 years. The number of forecasters who predicted any of those recessions rounds to zero. The stock market fell more than 10% from a recent high at least 102 times. Stocks lost a third of their value at least 12 times. Annual inflation exceeded 7% in 20 separate years. The words “economic pessimism” appeared in newspapers at least 29,000 times, according to Google.
Morgan Housel (The Psychology of Money: Timeless lessons on wealth, greed, and happiness)
Hitler had studied America from afar, both envying and admiring it, and attributed its achievements to its Aryan stock. He praised the country’s near genocide of Native Americans and the exiling to reservations of those who had survived. He was pleased that the United States had “shot down the millions of redskins to a few hundred thousand.” He saw the U.S. Immigration Restriction Act of 1924 as “a model for his program of racial purification,” historian Jonathan Spiro wrote. The Nazis were impressed by the American custom of lynching its subordinate caste of African-Americans, having become aware of the ritual torture and mutilations that typically accompanied them. Hitler especially marveled at the American “knack for maintaining an air of robust innocence in the wake of mass death.
Isabel Wilkerson (Caste: The Origins of Our Discontents)
Most people seemed satisfied with the thin decorative glaze and the artful stage lighting that, sometimes, made the bedrock atrocity of the human predicament look somewhat more mysterious or less abhorrent. People gambled and golfed and planted gardens and traded stocks and had sex and bought new cars and practiced yoga and worked and prayed and redecorated their homes and got worked up over the news and fussed over their children and gossiped about their neighbors and pored over restaurant reviews and founded charitable organizations and supported political candidates and attended the U.S. Open and dined and travelled and distracted themselves with all kinds of gadgets and devices, flooding themselves incessantly with information and texts and communication and entertainment from every direction to try to make themselves forget it: where we were, what we were.
Donna Tartt (The Goldfinch)
Alan and his wife had worked all their lives, and managed to sock away a million dollars for retirement. But four months earlier he’d gotten the idea that, despite having no experience in the markets, he should buy a hundred thousand dollars’ worth of GM stock, based on reports that the U.S. government might bail out the auto industry. He was convinced it was a no-lose investment. After his trade went through, the media reported that the bailout might not happen after all. The market sold off GM and the stock price fell. But Alan imagined the thrill of winning big. It felt so real he could taste it. He held firm. The stock fell again, and again, and kept dropping until finally Alan decided to sell, at a big loss. There was worse to come. When the next news cycle suggested that the bailout would happen after all, Alan got excited all over again and invested another hundred thousand dollars, buying more stock at the lower price. But the same thing happened: the bailout started looking uncertain.
Susan Cain (Quiet: The Power of Introverts in a World That Can't Stop Talking)
WHY DIVERSIFY? During the bull market of the 1990s, one of the most common criticisms of diversification was that it lowers your potential for high returns. After all, if you could identify the next Microsoft, wouldn’t it make sense for you to put all your eggs into that one basket? Well, sure. As the humorist Will Rogers once said, “Don’t gamble. Take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don’t go up, don’t buy it.” However, as Rogers knew, 20/20 foresight is not a gift granted to most investors. No matter how confident we feel, there’s no way to find out whether a stock will go up until after we buy it. Therefore, the stock you think is “the next Microsoft” may well turn out to be the next MicroStrategy instead. (That former market star went from $3,130 per share in March 2000 to $15.10 at year-end 2002, an apocalyptic loss of 99.5%).1 Keeping your money spread across many stocks and industries is the only reliable insurance against the risk of being wrong. But diversification doesn’t just minimize your odds of being wrong. It also maximizes your chances of being right. Over long periods of time, a handful of stocks turn into “superstocks” that go up 10,000% or more. Money Magazine identified the 30 best-performing stocks over the 30 years ending in 2002—and, even with 20/20 hindsight, the list is startlingly unpredictable. Rather than lots of technology or health-care stocks, it includes Southwest Airlines, Worthington Steel, Dollar General discount stores, and snuff-tobacco maker UST Inc.2 If you think you would have been willing to bet big on any of those stocks back in 1972, you are kidding yourself. Think of it this way: In the huge market haystack, only a few needles ever go on to generate truly gigantic gains. The more of the haystack you own, the higher the odds go that you will end up finding at least one of those needles. By owning the entire haystack (ideally through an index fund that tracks the total U.S. stock market) you can be sure to find every needle, thus capturing the returns of all the superstocks. Especially if you are a defensive investor, why look for the needles when you can own the whole haystack?
Benjamin Graham (The Intelligent Investor)
Every day, the markets were driven less directly by human beings and more directly by machines. The machines were overseen by people, of course, but few of them knew how the machines worked. He knew that RBC’s machines—not the computers themselves, but the instructions to run them—were third-rate, but he had assumed it was because the company’s new electronic trading unit was bumbling and inept. As he interviewed people from the major banks on Wall Street, he came to realize that they had more in common with RBC than he had supposed. “I’d always been a trader,” he said. “And as a trader you’re kind of inside a bubble. You’re just watching your screens all day. Now I stepped back and for the first time started to watch other traders.” He had a good friend who traded stocks at a big-time hedge fund in Stamford, Connecticut, called SAC Capital. SAC Capital was famous (and soon to be infamous) for being one step ahead of the U.S. stock market. If anyone was going to know something about the market that Brad didn’t know, he figured, it would be them. One spring morning he took the train up to Stamford and spent the day watching his friend trade. Right away he saw that, even though his friend was using technology given to him by Goldman Sachs and Morgan Stanley and the other big firms, he was experiencing exactly the same problem as RBC: The market on his screens was no longer the market. His friend would hit a button to buy or sell a stock and the market would move away from him. “When I see this guy trading and he was getting screwed—I now see that it isn’t just me. My frustration is the market’s frustration. And I was like, Whoa, this is serious.” Brad’s problem wasn’t just Brad’s problem. What people saw when they looked at the U.S. stock market—the numbers on the screens of the professional traders, the ticker tape running across the bottom of the CNBC screen—was an illusion. “That’s when I realized the markets are rigged. And I knew it had to do with the technology. That the answer lay beneath the surface of the technology. I had absolutely no idea where. But that’s when the lightbulb went off that the only way I’m going to find out what’s going on is if I go beneath the surface.
Michael Lewis (Flash Boys)
I’m Sushi K and I’m here to say I like to rap in a different way Look out Number One in every city Sushi K rap has all most pretty My special talking of remarkable words Is not the stereotyped bucktooth nerd My hair is big as a galaxy Cause I attain greater technology [...] I like to rap about sweetened romance My fond ambition is of your pants So here is of special remarkable way Of this fellow raps named Sushi K The Nipponese talking phenomenon Like samurai sword his sharpened tongue Who raps the East Asia and the Pacific Prosperity Sphere, to be specific [...] Sarariman on subway listen For Sushi K like nuclear fission Fire-breathing lizard Gojiro He my always big-time hero His mutant rap burn down whole block Start investing now Sushi K stock It on Nikkei stock exchange Waxes; other rappers wane Best investment, make my day Corporation Sushi K [...] Coming to America now Rappers trying to start a row Say “Stay in Japan, please, listen! We can’t handle competition!” U.S. rappers booing and hissin’ Ask for rap protectionism They afraid of Sushi K Cause their audience go away He got chill financial backin’ Give those U.S. rappers a smackin’ Sushi K concert machine Fast efficient super clean Run like clockwork in a watch Kick old rappers in the crotch [...] He learn English total immersion English/Japanese be mergin’ Into super combination So can have fans in every nation Hong Kong they speak English, too Yearn of rappers just like you Anglophones who live down under Sooner later start to wonder When they get they own rap star Tired of rappers from afar [...] So I will get big radio traffic When you look at demographic Sushi K research statistic Make big future look ballistic Speed of Sushi K growth stock Put U.S. rappers into shock
Neal Stephenson (Snow Crash)
Leonard H. Stringfield 1)Retrievals of the Third Kind: A Case Study of Alleged UFOs and Occupants in Military Custody. The first formal research paper presented publicly on the subject of UFO crash/retrievals at the MUFON Symposium, Dayton, Ohio, July, 1978. Original edition, dated April, 1978, was published in MUFON Proceedings (1978). Address: MUFON, 103 Oldtowne Road, Seguin, Texas 78155. If available, price___________. 2)Retrievals of the Third Kind: A Case Study of Alleged UFOs and Occupants in Military Custody,Status Report I. Revised edition, July, 1978, word processed copy, 34 pages. Available at author's address. See below. Price, USA___________. 3)UFO Crash/Retrieval Syndrome, Status Report II. Published by MUFON. Flexible cover, typeset, illustrations, 37 pages. Available only at MUFON address: 103 Oldtowne Road, Seguin, Texas 78155. Price, USA___________. 4)UFO Crash/Retrievals: Amassing the Evidence, Status Report III, June 1982; flexible cover, typeset, illustrations, 53 pages. Available from author's address. See below. Price, USA___________. 5)The Fatal Encounter at Ft. Dix -- McGuire: A Case Study, Status Report IV, June, 1985. Paper presented at MUFON Symposium, St. Louis, Missouri, 1985. Xeroxed copy, 26 pages. Available at author's address. See below. Price, USA___________. 6)UFO Crash/Retrievals: Is the Coverup Lid Lifting? Status Report V. Published in MUFON UFO Journal, January, 1989, with updated addendum. Xeroxed copy, 23 pages. Available at author's address. See below. Price, USA___________. 7)Inside Saucer Post, 3-0 Blue. Book privately published, 1957. Review of author's early research and cooperative association with the Air Defense Command Filter Center, using code name, FOX TROT KILO 3-0 BLUE. Flexible cover, typeset, illustrations, 94 pages. Available from author's address. See below. Price, USA___________. 8)Situation Red: The UFO Siege. Hardcover book published by Doubleday & Co., 1977. Paperback edition published by Fawcett Crest Books, 1977. Also foreign publishers. Out of print, not available. 9)Orbit Newsletter, published monthly, 1954-1957, by author for international sale and distribution. Set of 36 issues. Some issues out of stock, duplicated by xerox. Available at author's address -- see below. Price of set, USA___________. 10)UFO Crash/Retrievals: The Inner Sanctum, Status Report VI, July, 1991; flexible cover, book length, 81.000 words, 142 (8-1/2 X 11) pages, illustrated. Privately published. Available from author's address. See below. Price, USA___________. Prices include postage and handling. Mailings to Canada, add 500 for each item ordered. All foreign orders, payable U.S. funds, International money order or draft on U.S. Bank. Recommend Air Mail outside U.S. territories. Check on price. Leonard H. Stringfield 4412 Grove Avenue Cincinnati, Ohio 45227 USA Telephone: (513) 271-4248
Leonard H. Stringfield (UFO Crash Retrievals: The Inner Sanctum - Status Report VI)
some accounts initially refused to stock into a word-of-mouth bestseller. And for the next three years they bought For Dummies books, millions of them. And wrote us letters (maybe not millions of them, but lots). They thanked us for teaching them how to use their computer, their operating system, their applications. And they asked For Dummies books to apply those technologies to their lives. Our first response in 1994 was Personal Finance For Dummies, another bestseller. This coincided with another debut in 1994, the first World Wide Web conference, held in Geneva, Switzerland. The Web was introducing the Internet to computer users, and the role of the PC/Mac in peoples’ lives was changing again. Computing devices became microwave ovens of information, allowing people everywhere to explore every area of human interest and endeavor. So Internet For Dummies was published that year, winning a first-place award from the Computer Press Association. And so we looked beyond computing itself, to the areas of work and life the Internet could touch, to expand our list and reach. Our reach also expanded beyond the U.S., and even the English-speaking world. Before the
John Wiley & Sons (A Little Bit of Everything For Dummies)
As the U.S. stock market had grown less comprehensible, it had also become more sensationally erratic.
Michael Lewis (Flash Boys)
Imagine, for instance, that someone passed a rule, in the U.S. stock market as it is currently configured, that required every stock market trade to be front-run by a firm called Scalpers Inc. Under this rule, each time you went to buy 1,000 shares of Microsoft, Scalpers Inc. would be informed, whereupon it would set off to buy 1,000 shares of Microsoft offered in the market and, without taking the risk of owning the stock for even an instant, sell it to you at a higher price. Scalpers Inc. is prohibited from taking the slightest market risk; when it buys, it has the seller firmly in hand; when it sells, it has the buyer in hand; and at the end of every trading day, it will have no position at all in the stock market. Scalpers Inc. trades for the sole purpose of interfering with trading that would have happened without it. In buying from every seller and selling to every buyer, it winds up: a) doubling the trades in the marketplace and b) being exactly 50 percent of that booming volume. It adds nothing to the market but at the same time might be mistaken for the central player in that market. This state of affairs, as it happens, resembles the United States stock market after the passage of Reg NMS. From 2006 to 2008, high-frequency traders’ share of total U.S. stock market trading doubled, from 26 percent to 52 percent—and it has never fallen below 50 percent since then. The total number of trades made in the stock market also spiked dramatically, from roughly 10 million per day in 2006 to just over 20 million per day in 2009.
Michael Lewis (Flash Boys)
The price volatility within each trading day in the U.S. stock market between 2010 and 2013 was nearly 40 percent higher than the volatility between 2004 and 2006, for instance. There were days in 2011 in which volatility was higher than in the most volatile days of the dot-com bubble.
Michael Lewis (Flash Boys)
At the end of World War II, the average holding period for a stock was four years. By 2000, it was eight months. By 2008, it was two months. And by 2011 it was twenty-two seconds, at least according to one professor’s estimates. One founder of a prominent high-frequency trading outfit once claimed his firm’s average holding period was a mere eleven seconds.
Scott Patterson (Dark Pools: The Rise of the Machine Traders and the Rigging of the U.S. Stock Market)
At the G-20 meeting in Paris in 2011, finance ministers expressed fears that U.S.-driven global inflation was threatening global stability. George Melloan was among those who made the connection between this unrest and QE. He acknowledged in the Wall Street Journal: “Probably few of the protesters in the streets connect their economic travail to Washington. But central bankers do.” To appreciate the depth of political upheaval created by the 2008 financial crisis, just tally the power shifts that occurred in its wake. In addition to the turmoil in the Middle East, 13 out of 17 European governments changed over as a result of the initial financial crisis. In the United States, the stock market panic in September 2008 reversed the slight lead of John McCain and helped sweep the far-left Barack Obama into office.
Steve Forbes (Money: How the Destruction of the Dollar Threatens the Global Economy - and What We Can Do About It)
the yen upturn coincided exactly with the start of a topping process in global stocks. By first quarter 2008, the yen had risen to the highest level in three years against the U.S. dollar as global stocks tumbled.
John J. Murphy (The Visual Investor: How to Spot Market Trends (Wiley Trading))
This fall, Alibaba Group Holdings will go public on the New York Stock Exchange, and it could raise $20 billion, according to Bloomberg News, making it the largest stock offering in U.S.
Anonymous
This kind of growth is already having a beneficial impact on numerous industries associated with energy...U.S. Steel, for instance, has struggled in recent decades, undercut by Asian producers and unable to respond creatively, and saw its stock price drop nearly 90 percent. But today it is in the midst of a Phoenix-like resurrection.(58)
Alex Prud'Homme (Hydrofracking: What Everyone Needs to Know(r))
From 2006 to 2008, high-frequency traders’ share of total U.S. stock market trading doubled, from 26 percent to 52 percent—and it has never fallen below 50 percent since then.
Anonymous
would take only $1.33 million invested in the stock market in 1802 to grow, with dividends reinvested, to about $18 trillion, the total value of U.S. stocks, by the end of 2012. The sum of $1.33 million in 1802 is equivalent to roughly $25 million in today’s purchasing power, an amount far less than the value of the stock market at that time.
Jeremy J. Siegel (Stocks for the Long Run: The Definitive Guide to Financial Market Returns & Long-Term Investment Strategies)
The first actively traded U.S. stocks, floated in 1791, were issued by two banks: the Bank of New York and the Bank of the United States.
Jeremy J. Siegel (Stocks for the Long Run: The Definitive Guide to Financial Market Returns & Long-Term Investment Strategies)
the economy of China will become twice the size of the U.S. economy in 2025 if both countries’ per capita income continues to grow at recent rates.
Jeremy J. Siegel (Stocks for the Long Run: The Definitive Guide to Financial Market Returns & Long-Term Investment Strategies)
The new structure of the U.S. stock market had removed the big Wall Street banks from their historic, lucrative role as intermediary. At the same time it created, for any big bank, some unpleasant risks: that the customer would somehow figure out what was happening to his stock market orders. And that the technology might somehow go wrong. If the markets collapsed, or if another flash crash occurred, the high-frequency traders would not take 85 percent of the blame, or bear 85 percent of the costs of the inevitable lawsuits. The banks would bear the lion’s share of the blame and the costs. The relationship of the big Wall Street banks to the high-frequency traders, when you thought about it, was a bit like the relationship of the entire society to the big Wall
Michael Lewis (Flash Boys)
As we explore later in this chapter, virtually no asset, except for long-term U.S. Treasury bonds, served as an effective hedge against the sudden and sharp decline in asset values that took place during the financial crisis.
Jeremy J. Siegel (Stocks for the Long Run: The Definitive Guide to Financial Market Returns & Long-Term Investment Strategies)
The U.S. stock market now trades inside black boxes, in heavily guarded buildings in New Jersey and Chicago. What goes on inside those black boxes is hard to say—the ticker tape that runs across the bottom of cable TV screens captures only the tiniest fraction of what occurs in the stock markets. The public reports of what happens inside the black boxes are fuzzy and unreliable—even an expert cannot say what exactly happens inside them, or when it happens, or why.
Michael Lewis (Flash Boys)
If international investing interests you and you see it as a good way to be more diversified (beyond the U.S. stock market), then consider exchange-traded funds (ETFs) as a convenient way to do it.
Paul Mladjenovic (Stock Investing for Dummies)
Lucent, Not Transparent In mid-2000, Lucent Technologies Inc. was owned by more investors than any other U.S. stock. With a market capitalization of $192.9 billion, it was the 12th-most-valuable company in America. Was that giant valuation justified? Let’s look at some basics from Lucent’s financial report for the fiscal quarter ended June 30, 2000:1 FIGURE 17-1 Lucent Technologies Inc. All numbers in millions of dollars. * Other assets, which includes goodwill. Source: Lucent quarterly financial reports (Form 10-Q). A closer reading of Lucent’s report sets alarm bells jangling like an unanswered telephone switchboard: Lucent had just bought an optical equipment supplier, Chromatis Networks, for $4.8 billion—of which $4.2 billion was “goodwill” (or cost above book value). Chromatis had 150 employees, no customers, and zero revenues, so the term “goodwill” seems inadequate; perhaps “hope chest” is more accurate. If Chromatis’s embryonic products did not work out, Lucent would have to reverse the goodwill and charge it off against future earnings. A footnote discloses that Lucent had lent $1.5 billion to purchasers of its products. Lucent was also on the hook for $350 million in guarantees for money its customers had borrowed elsewhere. The total of these “customer financings” had doubled in a year—suggesting that purchasers were running out of cash to buy Lucent’s products. What if they ran out of cash to pay their debts? Finally, Lucent treated the cost of developing new software as a “capital asset.” Rather than an asset, wasn’t that a routine business expense that should come out of earnings? CONCLUSION: In August 2001, Lucent shut down the Chromatis division after its products reportedly attracted only two customers.2 In fiscal year 2001, Lucent lost $16.2 billion; in fiscal year 2002, it lost another $11.9 billion. Included in those losses were $3.5 billion in “provisions for bad debts and customer financings,” $4.1 billion in “impairment charges related to goodwill,” and $362 million in charges “related to capitalized software.” Lucent’s stock, at $51.062 on June 30, 2000, finished 2002 at $1.26—a loss of nearly $190 billion in market value in two-and-a-half years.
Benjamin Graham (The Intelligent Investor)
8 Lending Terms That Every Entrepreneur Must Know In case you’re recently starting your chase for business financing, you’re likely new somewhere down in new terms and loaning language. Also, it’s sufficient to make even the most energetic business person feel overpowered. Try not to proceed with your inquiry without assessing a couple of the fundamental terms you have to know to settle on an educated choice about financing your business. We’ve separated eight must-know terms underneath. 1. Term credit. Term credits are a singular amount of money you pay back, in addition to enthusiasm, over a settled timeframe. Customary term credits generally offer longer installment terms and lower regularly scheduled installments than here and now advances and different types of crisis financing. Securing a term advance, nonetheless, requires a high level of financial soundness with respect to your business. In the event that your business is extremely youthful, has poor credit, or shows some other sort of hazard to your bank, you may think that its hard to secure a term advance from a customary loan specialist. 2. SBA advance. Independent company Administration advances offer much longer terms and lower costs than customary term remarkably, halfway ensured by the U.S. government. SBA credits are particularly intended to give entrepreneurs the most reasonable financing conceivable as they develop their organizations. (Prepare yourself, in any case, for a long and focused endorsement process and bunches of printed material.) 3. Credit extension. Another mainstream advance item your bank may offer is a business credit extension. This sort of financing gives a borrower spinning credit, enabling you to obtain and pay back that acquired sum again and again while remaining inside a most extreme, as you would with a charge card. Not at all like an advance, a credit extension offers you capital as required, and you’ll just pay enthusiasm on what you pull back. 4. Yearly rate. A yearly rate, or APR, is basically the yearly cost of your credit. It’s cited as a rate, similar to your financing cost, yet gives a more precise perspective of what your advance will cost you. Notwithstanding interest owed, your APR will likewise incorporate any beginning expenses, shutting charges, documentation charges, and so forth. The APR offer you get will differ from bank to moneylender, in view of the advance item you’re chasing and your history as a borrower. On the off chance that you’ve been peering toward an advance, make sure to consider its APR before pushing ahead. The credit’s aggregate yearly cost could be higher than you foreseen. 5. Pay explanation. A pay explanation points of interest your business’ net wage, income and costs for a particular period, for example, quarterly or every year. You’ll run over this term when rounding out your advance application. It’s a standout amongst the most critical segments of your application. You may likewise observe it called a “benefit and misfortune proclamation.” This record outlines your business’ monetary wellbeing and the quality of its main concern to your loan specialist. You can set up your announcement yourself or with the assistance of a bookkeeper. Wage explanations accompany their own arrangement of language, so it acquaints yourself with their vocabulary before making a plunge alone. 6. Security. Guarantee portrays any advantage you promise to a moneylender to help secure a credit. This could incorporate land, hardware, money due, stock – anything a loan specialist could sell in the event that you default. Security limits the hazard to your loan specialist should you neglect to hold up your finish of the deal. In case you’re thinking about a secured advance, hope to set up guarantee when you apply. Unsecured advances won’t require guarantee and commonly accompany less stringent credit prerequisites, yet additionally higher rates.
Businessplans
Net wages: “It’s not what you make, but what you net” after paying the FIRE sector, basic utilities and taxes. The usual measure of disposable personal income (DPI) refers to how much employees take home after income-tax withholding (designed in part by Milton Friedman during World War II) and over 15% for FICA (Federal Insurance Contributions Act) to produce a budget surplus for Social Security and health care (half of which are paid by the employer). This forced saving is lent to the U.S. Treasury, enabling it to cut taxes on the higher income brackets. Also deducted from paychecks may be employee withholding for private health insurance and pensions. What is left is by no means freely available for discretionary spending. Wage earners have to pay a monthly financial and real estate “nut” off the top, headed by mortgage debt or rent to the landlord, plus credit card debt, student loans and other bank loans. Electricity, gas and phone bills must be paid, often by automatic bank transfer – and usually cable TV and Internet service as well. If these utility bills are not paid, banks increase the interest rate owed on credit card debt (typically to 29%). Not much is left to spend on goods and services after paying the FIRE sector and basic monopolies, so it is no wonder that markets are shrinking. (See Hudson Bubble Model later in this book.) A similar set of subtrahends occurs with net corporate cash flow (see ebitda). After paying interest and dividends – and using about half their revenue for stock buybacks – not much is left for capital investment in new plant and equipment, research or development to expand production.
Michael Hudson (J IS FOR JUNK ECONOMICS: A Guide To Reality In An Age Of Deception)
Table 4.1 Equities Generate Superior Returns in the Long Run Wealth Multiples for U.S. Asset Classes and Inflation December 1925–December 2005 Asset Class Multiple Inflation 11 times Treasury bills 18 times Treasury bonds 71 times Corporate bonds 100 times Large-capitalization stocks 2,658 times Small-capitalization stocks 13,706 times Source: Ibbotson Associates, Stocks, Bonds, Bills and Inflation, 2006 Year Book.
David F. Swensen (Pioneering Portfolio Management: An Unconventional Approach to Institutional Investment, Fully Revised and Updated)
Guns are a product of their time. An American long rifle, stock smooth and silky, frame lightweight, barrel long and sleek—the man who made this gun worked in the dim light of a small forge, and chose carefully the wood to use. His fingers went raw as he honed the stock, and the iron from a nearby mine stained his hands and the water he used to cool the parts as he finished. Take the gun up now, and the smell of black powder and saltpeter sting the air. Raise the rifle to your shoulder and look into the distance. You see not a target but a whole continent of potential, of great things to come, a promising future . . . but also toil, trial, and hardship. The firearm in your hands is a tool to help you through it.
Chris Kyle (American Gun: A History of the U.S. in Ten Firearms)
As I saw it, there was a 75 percent chance the Fed’s efforts would fall short and the economy would move into failure; a 20 percent chance it would initially succeed at stimulating the economy but still ultimately fail; and a 5 percent chance it would provide enough stimulus to save the economy but trigger hyperinflation. To hedge against the worst possibilities, I bought gold and T-bill futures as a spread against eurodollars, which was a limited-risk way of betting on credit problems increasing. I was dead wrong. After a delay, the economy responded to the Fed’s efforts, rebounding in a noninflationary way. In other words, inflation fell while growth accelerated. The stock market began a big bull run, and over the next eighteen years the U.S. economy enjoyed the greatest noninflationary growth period in its history. How was that possible? Eventually, I figured it out. As money poured out of these borrower countries and into the U.S., it changed everything. It drove the dollar up, which produced deflationary pressures in the U.S., which allowed the Fed to ease interest rates without raising inflation. This fueled a boom. The banks were protected both because the Federal Reserve loaned them cash and the creditors’ committees and international financial restructuring organizations such as the International Monetary Fund (IMF) and the Bank for International Settlements arranged things so that the debtor nations could pay their debt service from new loans. That way everyone could pretend everything was fine and write down those loans over many years. My experience over this period was like a series of blows to the head with a baseball bat. Being so wrong—and especially so publicly wrong—was incredibly humbling and cost me just about everything I had built at Bridgewater. I saw that I had been an arrogant jerk who was totally confident in a totally incorrect view. So there I was after eight years in business, with nothing to show for it. Though I’d been right much more than I’d been wrong, I was all the way back to square one.
Ray Dalio (Principles: Life and Work)
What does this mean in practical terms? Let’s keep things simple, ignore private equity and commercial real estate, and focus just on the broad stock and bond market. You might buy three funds: an index fund offering exposure to the entire U.S. stock market, an index fund that will give you exposure to both developed foreign stock markets and emerging stock markets, and an index fund that owns the broad U.S. bond market. Suppose we were aiming to build a classic balanced portfolio, with 60 percent in stocks and 40 percent in bonds. Here are some possible investment mixes using index funds offered by major financial firms:     40 percent Fidelity Spartan Total Market Index Fund, 20 percent Fidelity Spartan Global ex U.S. Index Fund and 40 percent Fidelity Spartan U.S. Bond Index Fund. You can purchase these mutual funds directly from Fidelity Investments (Fidelity.com).     40 percent Vanguard Total Stock Market Index Fund, 20 percent Vanguard FTSE All-World ex-US Index Fund and 40 percent Vanguard Total Bond Market Index Fund. You can buy these mutual funds directly from Vanguard Group (Vanguard.com).     40 percent Vanguard Total Stock Market ETF, 20 percent Vanguard FTSE All-World ex-US ETF and 40 percent Vanguard Total Bond Market ETF. You can purchase these ETFs, or exchange-traded funds, through a discount or full-service brokerage firm. You can learn more about each of the funds at Vanguard.com.     40 percent iShares Core S&P Total U.S. Stock Market ETF, 20 percent iShares Core MSCI Total International Stock ETF and 40 percent iShares Core U.S. Aggregate Bond ETF. You can buy these ETFs through a brokerage account and find fund details at iShares.com.     40 percent SPDR Russell 3000 ETF, 20 percent SPDR MSCI ACWI ex-US ETF and 40 percent SPDR Barclays Aggregate Bond ETF. You can invest in these ETFs through a brokerage account and learn more at SPDRs.com.     40 percent Schwab Total Stock Market Index Fund, 20 percent Schwab International Index Fund and 40 percent Schwab Total Bond Market Fund. You can buy these mutual funds directly from Charles Schwab (Schwab.com). The good news: Schwab’s funds have a minimum initial investment of just $100. The bad news: Unlike the other foreign stock funds listed here, Schwab’s international index fund focuses solely on developed foreign markets. Those who want exposure to emerging markets might take a fifth of the money allocated to the international fund—equal to 4 percent of the entire portfolio—and invest it in an emerging markets stock index fund. One option: Schwab has an ETF that focuses on emerging markets.
Jonathan Clements (How to Think About Money)
Government inflation-protected securities (in the United States, these are Treasury Inflation-Protected Securities, or TIPS) A low-cost total U.S. domestic equity (stock) index fund, either a mutual fund or an exchange-traded fund (ETF—i.e., a sort of mutual fund that can be traded like stocks on an exchange) A low-cost total international equity index fund, either a mutual fund or an ETF Single-premium income annuities Low-cost term life insurance
Michael Edesess (The 3 Simple Rules of Investing: Why Everything You've Heard about Investing Is Wrong - and What to Do Instead)
The Securities and Exchange Commission was created in 1934, and, together with other checks and balances (including class-action suits), it helped build a sense of professional ethics among managers, auditors, and other market participants, leading to the creation of a securities market of unprecedented size, with unprecedented participation. At the peak of the market in March 2000, the market capitalization of U.S. stocks (as measured by the Wilshire index) was $17 trillion, or 1.7 times the value of American GDP. Half of all U.S. households owned equities. The world has changed a great deal, however, over the past sixty years. New forms of deception have been developed. In the go-go environment of the nineties while market values soared, human values eroded, and the playing field became terribly unlevel once again, contributing to the bubble that burst soon after the beginning of the new millennium. The
Joseph E. Stiglitz (The Roaring Nineties: A New History of the World's Most Prosperous Decade)
Unlike common stocks, whose dividends and earnings fluctuate with the ups and downs of the company’s business, bonds pay a fixed dollar amount of interest. If the U.S. Treasury offers a $1,000 20-year, 5 percent bond, that bond will pay $50 per year until it matures, when the principal will be repaid. Corporate bonds are less safe, but widely diversified bond portfolios have provided reasonably stable interest returns over time.
Burton G. Malkiel (The Elements of Investing: Easy Lessons for Every Investor)
Silber, the real reason the exchange was shut, and the reason the U.S. Treasury was involved, was not stock prices but gold. European sellers were entitled to convert their sales proceeds into gold at the U.S. subtreasury building located on Wall Street across from the exchange.
James Rickards (The Road to Ruin: The Global Elites' Secret Plan for the Next Financial Crisis)
The Health and Human Services emergency command post, just a block from the National Mall in Room 313-10 in its headquarters basement, stocked freeze-dried food sufficient to feed three dozen staff for a month, as well radio gear, an infirmary, and, incongruously, an office for the cabinet secretary decorated with photos of the atomic bombings of Hiroshima and Nagasaki, just in case the cabinet official forgot what the world outside would have looked like. The
Garrett M. Graff (Raven Rock: The Story of the U.S. Government's Secret Plan to Save Itself--While the Rest of Us Die)
At the end of World War II, the average holding period for a stock was four years. By 2000, it was eight months. By 2008, it was two months. And by 2011 it was twenty-two seconds,
Scott Patterson (Dark Pools: The Rise of the Machine Traders and the Rigging of the U.S. Stock Market)
True, there's an aisle devoted to foreign foods, and then there are familiar foods that have been through the Japanese filter and emerged a little bit mutated. Take breakfast cereal. You'll find familiar American brands such as Kellogg's, but often without English words anywhere on the box. One of the most popular Kellogg's cereals in Japan is Brown Rice Flakes. They're quite good, and the back-of-the-box recipes include cold tofu salad and the savory pancake okonomiyaki, each topped with a flurry of crispy rice flakes. Iris and I got mildly addicted to a Japanese brand of dark chocolate cornflakes, the only chocolate cereal I've ever eaten that actually tastes like chocolate. (Believe me, I've tried them all.) Stocking my pantry at Life Supermarket was fantastically simple and inexpensive. I bought soy sauce, mirin, rice vinegar, rice, salt, and sugar. (I was standing right in front of the salt when I asked where to find it This happens to me every time I ask for help finding any item in any store.) Total outlay: about $15, and most of that was for the rice. Japan is an unabashed rice protectionist, levying prohibitive tariffs on imported rice. As a result, supermarket rice is domestic, high quality, and very expensive. There were many brands of white rice to choose from, the sacks advertising different growing regions and rice varieties. (I did the restaurant wine list thing and chose the second least expensive.) Japanese consumers love to hear about the regional origins of their foods. I almost never saw ingredients advertised as coming from a particular farm, like you'd see in a farm-to-table restaurant in the U.S., but if the milk is from Hokkaido, the rice from Niigata, and the tea from Uji, all is well. I suppose this is not so different from Idaho potatoes and Florida orange juice. When I got home, I opened the salt and sugar and spooned some into small bowls near the stove. The next day I learned that Japanese salt and sugar are hygroscopic: their crystalline structure draws in water from the air (and Tokyo, in summer, has enough water in the air to supply the world's car washes). I figured this was harmless and went on licking slightly moist salt and sugar off my fingers every time I cooked.
Matthew Amster-Burton (Pretty Good Number One: An American Family Eats Tokyo)
After lunch we went to have our feet nibbled by hundreds of tiny fish. Then, after that- just kidding, I'll explain. The onsen offers a skin treatment where you dip your feet into a shallow pool stocked with Garra rufa, also known as doctor fish, which perform primitive exfoliation by slurping dead skin off your feet with their tiny jaws. This is illegal in most U.S. states, where health authorities believe that sharing fish between customers is as sanitary as sharing unsterilized tattoo needles. I find this reasoning persuasive. Naturally, we all went and joined a random stranger at the fish pool. I'd heard of this fish treatment before, probably from a "hey, you've got to see this" link passed around online, and somehow I had the idea that it involved the occasional wayward fish sidling up to your foot. Try dozens, hundreds, all gnawing simultaneously. You can feel the little bites. At first it provoked a deep-seated piranha fear which I quelled by sitting still, taking deep breaths, and telling myself I had nothing to worry about other than blood-borne diseases. After that, it proved quite relaxing, although I did give up before my allotted fifteen minutes and went back to the painful reflexology pool where you walk around barefoot on jagged rocks. My feet are still baby soft, but when I need my next treatment, I'll post to Craigslist. Need feet nibbled. Will pay.
Matthew Amster-Burton (Pretty Good Number One: An American Family Eats Tokyo)
But depression wasn’t the word. This was a plunge encompassing sorrow and revulsion far beyond the personal: a sick, drenching nausea at all humanity and human endeavor from the dawn of time. The writhing loathsomeness of the biological order. Old age, sickness, death. No escape for anyone. Even the beautiful ones were like soft fruit about to spoil. And yet somehow people still kept fucking and breeding and popping out new fodder for the grave, producing more and more new beings to suffer like this was some kind of redemptive, or good, or even somehow morally admirable thing: dragging more innocent creatures into the lose-lose game. Squirming babies and plodding, complacent, hormone-drugged moms. Oh, isn’t he cute? Awww. Kids shouting and skidding in the playground with no idea what future Hells awaited them: boring jobs and ruinous mortgages and bad marriages and hair loss and hip replacements and lonely cups of coffee in an empty house and a colostomy bag at the hospital. Most people seemed satisfied with the thin decorative glaze and the artful stage lighting that, sometimes, made the bedrock atrocity of the human predicament look somewhat more mysterious or less abhorrent. People gambled and golfed and planted gardens and traded stocks and had sex and bought new cars and practiced yoga and worked and prayed and redecorated their homes and got worked up over the news and fussed over their children and gossiped about their neighbors and pored over restaurant reviews and founded charitable organizations and supported political candidates and attended the U.S. Open and dined and travelled and distracted themselves with all kinds of gadgets and devices, flooding themselves incessantly with information and texts and communication and entertainment from every direction to try to make themselves forget it: where we were, what we were. But in a strong light there was no good spin you could put on it. It was rotten top to bottom. Putting your time in at the office; dutifully spawning your two point five; smiling politely at your retirement party; then chewing on your bedsheet and choking on your canned peaches at the nursing home. It was better never to have been born—never to have wanted anything, never to have hoped for anything.
Donna Tartt (The Goldfinch)
Foreign stocks have historically offered several benefits for U.S. investors. First, foreign stocks do not always move in correlation with the U.S. equity markets, which creates a diversification opportunity. Second, international stocks trade in foreign currencies. This offers investors a hedge against a decline in the U.S. dollar. Both are important reasons to have some foreign stock exposure in a portfolio.
Richard A. Ferri (All About Asset Allocation (Professional Finance & Investment))
It costs more to transact abroad, and many foreign governments tax stock dividends; although you can recover this cost in a taxable account through the foreign tax credit on your U.S. tax return, you cannot do so in a retirement account.
William J. Bernstein (The Investor's Manifesto: Preparing for Prosperity, Armageddon, and Everything in Between)
Let’s say you can spare $500 a month. By owning and dollar-cost averaging into just three index funds—$300 into one that holds the total U.S. stock market, $100 into one that holds foreign stocks, and $100 into one that holds U.S. bonds—you can ensure that you own almost every investment on the planet that’s worth owning.7 Every month, like clockwork, you buy more. If the market has dropped, your preset amount goes further, buying you more shares than the month before. If the market has gone up, then your money buys you fewer shares. By putting your portfolio on permanent autopilot this way, you prevent yourself from either flinging money at the market just when it is seems most alluring (and is actually most dangerous) or refusing to buy more after a market crash has made investments truly cheaper (but seemingly more “risky”).
Benjamin Graham (The Intelligent Investor)
The U.S. government’s Thrift Savings Plan, developed for the country’s civilian and military employees, serves as a possible model. At the end of 2003, the plan contained $128.8 billion in assets distributed across five funds. Four of the funds track well-known indices, namely the large-capitalization-stock S&P 500 Index, the small-capitalization-stock Wilshire 4500 Index, the developed-foreign-stock MSCI EAFE Index and the broadly inclusive domestic bond Lehman Brothers U.S. Aggregate Index. From a security selection perspective, the U.S. government protects its employees from playing the negative-sum game of active management.
David F. Swensen (Unconventional Success: A Fundamental Approach to Personal Investment)
High-yield bonds—which Graham calls “second-grade” or “lower-grade” and today are called “junk bonds”—get a brisk thumbs-down from Graham. In his day, it was too costly and cumbersome for an individual investor to diversify away the risks of default.;1 (To learn how bad a default can be, and how carelessly even “sophisticated” professional bond investors can buy into one, see the sidebar on p. 146.) Today, however, more than 130 mutual funds specialize in junk bonds. These funds buy junk by the cartload; they hold dozens of different bonds. That mitigates Graham’s complaints about the difficulty of diversifying. (However, his bias against high-yield preferred stock remains valid, since there remains no cheap and widely available way to spread their risks.) Since 1978, an annual average of 4.4% of the junk-bond market has gone into default—but, even after those defaults, junk bonds have still produced an annualized return of 10.5%, versus 8.6% for 10-year U.S. Treasury bonds.2 Unfortunately, most junk-bond funds charge high fees and do a poor job of preserving the original principal amount of your investment. A junk fund could be appropriate if you are retired, are looking for extra monthly income to supplement your pension, and can tolerate temporary tumbles in value. If you work at a bank or other financial company, a sharp rise in interest rates could limit your raise or even threaten your job security—so a junk fund, which tends to outper-forms most other bond funds when interest rates rise, might make sense as a counterweight in your 401(k). A junk-bond fund, though, is only a minor option—not an obligation—for the intelligent investor.
Benjamin Graham (The Intelligent Investor)
Ibbotson Associates, founded by Yale scholar Roger Ibbotson, produces a widely used survey of returns covering the past seventy-eight years. Over the nearly eight-decade period from 1926 to 2003, U.S. stocks produced an annual compound return of 10.4 percent, U.S. government bonds returned 5.4 percent, and U.S. Treasury bills generated 3.7 percent. The 5.0 percentage point difference between stock and bond returns represents the historical risk premium, defined as the return to equity holders for accepting risk above the level inherent in bond investments.
David F. Swensen (Unconventional Success: A Fundamental Approach to Personal Investment)
I’m Sushi K and I’m here to say I like to rap in a different way Look out Number One in every city Sushi K rap has all most pretty My special talking of remarkable words Is not the stereotyped bucktooth nerd My hair is big as a galaxy Cause I attain greater technology [...] I like to rap about sweetened romance My fond ambition is of your pants So here is of special remarkable way Of this fellow raps named Sushi K The Nipponese talking phenomenon Like samurai sword his sharpened tongue Who raps the East Asia and the Pacific Prosperity Sphere, to be specific [...] Sarariman on subway listen For Sushi K like nuclear fission Fire-breathing lizard Gojiro He my always big-time hero His mutant rap burn down whole block Start investing now Sushi K stock It on Nikkei stock exchange Waxes; other rappers wane Best investment, make my day Corporation Sushi K [...] Coming to America now Rappers trying to start a row Say “Stay in Japan, please, listen! We can’t handle competition!” U.S. rappers booing and hissin’ Ask for rap protectionism They afraid of Sushi K Cause their audience go away He got chill financial backin’ Give those U.S. rappers a smackin’ Sushi K concert machine Fast efficient super clean Run like clockwork in a watch Kick old rappers in the crotch
Neal Stephenson (Snow Crash)
What else should you watch for? Most fund buyers look at past performance first, then at the manager’s reputation, then at the riskiness of the fund, and finally (if ever) at the fund’s expenses.8 The intelligent investor looks at those same things—but in the opposite order. Since a fund’s expenses are far more predictable than its future risk or return, you should make them your first filter. There’s no good reason ever to pay more than these levels of annual operating expenses, by fund category: Taxable and municipal bonds: 0.75% U.S. equities (large and mid-sized stocks): 1.0% High-yield (junk) bonds: 1.0% U.S. equities (small stocks): 1.25% Foreign stocks: 1.50%9 Next, evaluate risk. In its prospectus (or buyer’s guide), every fund must show a bar graph displaying its worst loss over a calendar quarter. If you can’t stand losing at least that much money in three months, go elsewhere. It’s also worth checking a fund’s Morningstar rating. A leading investment research firm, Morningstar awards “star ratings” to funds, based on how much risk they took to earn their returns (one star is the worst, five is the best). But, just like past performance itself, these ratings look back in time; they tell you which funds were the best, not which are going to be. Five-star funds, in fact, have a disconcerting habit of going on to underperform one-star funds. So first find a low-cost fund whose managers are major shareholders, dare to be different, don’t hype their returns, and have shown a willingness to shut down before they get too big for their britches. Then, and only then, consult their Morningstar rating.10 Finally, look at past performance, remembering that it is only a pale predictor of future returns. As we’ve already seen, yesterday’s winners often become tomorrow’s losers. But researchers have shown that one thing is almost certain: Yesterday’s losers almost never become tomorrow’s winners. So avoid funds with consistently poor past returns—especially if they have above-average annual expenses.
Benjamin Graham (The Intelligent Investor)
In 1873, Mrs. Eliza Tibbets, a resident of the struggling three-year-old city of Riverside, California, received two orange tree bud stocks from the U.S. Department of Agriculture as part of the national seed distribution program. The buds were “sports” derived from an orange tree discovered in Bahia, Brazil, and the fruit proved to be thick-skinned, delicious, and conveniently free of seeds.
Jane S. Smith (The Garden of Invention: Luther Burbank and the Business of Breeding Plants)
35% Vanguard U.S. Bond Index (Symbol VBMFX) 35% Vanguard Total U.S. Stock Market Index (Symbol VTSMX) 30% Vanguard Total International Stock Market Index (Symbol VGTSX)
Andrew Hallam (Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School)
If everyone on Wall Street abided by the rule's spirit, the rule would have established a new fairness in the U.S. stock market.
Michael Lewis (Flash Boys: A Wall Street Revolt)
A recent Economist article on dialysis perfectly illustrates the inflationary impact of cost-plus pricing. Since U.S. clinics are paid on a cost-plus basis, they prefer to use expensive drugs rather than cheaper ones. In fact, many appear to order drugs in units that exceed what a standard dosage requires because they can charge the government for the wastage. Quoting a stock research firm, the article noted that many clinics preferred an injected drug with a price of $4,100 a year over the identical drug in oral form, priced at only $450 a year. Not surprisingly, the manufacturer of the oral drug responded by increasing its price above that of the injected version to make it more competitive!
David Goldhill (Catastrophic Care: How American Health Care Killed My Father--and How We Can Fix It)
The U.S. stock market was now a class system, rooted in speed, of haves and have-nots. The haves paid for nanoseconds; the have-nots had no idea that a nanosecond had value. The haves enjoyed a perfect view of the market; the have-nots never saw the market at all. What had once been the world’s most public, most democratic, financial market had become, in spirit, something more like a private viewing of a stolen work of art.
Michael Lewis (Flash Boys)
At a cost of up to $10,000 per pod per month, it was a highly lucrative business for the NYSE. How the setup fit in with the notion that electronic trading created a level playing field for all investors was another question.
Scott Patterson (Dark Pools: The Rise of the Machine Traders and the Rigging of the U.S. Stock Market)
What an expensive and needless mess. You could probably find a cure for cancer in a year if you just reassigned all the smart people who are now working on this artificially created and otherwise useless problem.
Scott Patterson (Dark Pools: The Rise of the Machine Traders and the Rigging of the U.S. Stock Market)
In 2014 actively run U.S. stock funds suffered $98 billion in redemptions, while index funds took in $167 billion. Passive managers have 38 percent of the $8.7 trillion stock fund business, more than twice their share 10 years earlier,
Anonymous
Only 20 percent of nonindex mutual funds investing in U.S. stocks beat their benchmarks in 2014.
Anonymous
The Vanguard Total International Stock exchange-traded fund—to cite one low-cost example—owns more than 5,000 non-U.S. stocks, has a dividend yield of 3.2% and charges an annual fee of 0.14%. Another
Anonymous
Historically, the U.S. stock market has often anticipated recessions by six months or so. Likewise, recovery from a recession is very often preceded by a rise in the stock market.
Anonymous
The ruble’s fall, described by analysts as “staggering” and “extreme,” prompted Russia’s central bank to hike a key interest rate by 6.5 percentage points, to 17%, after New York’s trading day had ended. One dollar now buys more than 65 rubles, compared with 33 rubles at the start of the year. Before Russia’s late move, U.S. stocks posted their fifth loss in six sessions, with the Dow industrials dropping 99.99 points, or 0.6%, to 17180.84. The selling was more intense in other markets, with Europe’s main index down 2.2%. Stock markets from Thailand to Mexico also dropped.
Anonymous
35% Vanguard U.S. Bond Index (Symbol VBMFX) 35% Vanguard Total U.S. Stock Market Index (Symbol VTSMX) 30% Vanguard Total International Stock Market Index (Symbol VGTSX) ==========
Anonymous
Taking stock of this challenging new landscape, 99U’s Manage Your Day-to-Day assembles insights around four key skill sets you must master to succeed: building a rock-solid daily routine, taming your tools (before they tame you), finding focus in a distracted world, and sharpening your creative mind.
Jocelyn K. Glei (Manage Your Day-To-Day: Build Your Routine, Find Your Focus, and Sharpen Your Creative Mind)
Just as quickly, as stocks bobbed and weaved, those orders were canceled and resubmitted at different price points—at different exchanges and dozens of other trading venues, such as dark pools (incredibly, a staggering 90 percent or more of all orders placed into the stock market were canceled).
Scott Patterson (Dark Pools: The Rise of the Machine Traders and the Rigging of the U.S. Stock Market)
The U.S. stock market was now a class system, rooted in speed, of haves and have-nots. The haves paid for nanoseconds; the have-nots had no idea that nanoseconds had value. The haves enjoyed a perfect view of the market; the have-nots never saw the market at all.
Michael Lewis (Flash Boys: A Wall Street Revolt)
If the stock market continues to advance, we know that inequality will increase, for capital gains on equities accrue disproportionately to the top income brackets.
Robert J. Gordon (The Rise and Fall of American Growth: The U.S. Standard of Living since the Civil War (The Princeton Economic History of the Western World))
TEN WAYS A PARTNER CAN HELP Before the baby’s born, help stock the freezer with meals that can be eaten with one hand. Find a good phone number for help and call it as needed. (La Leche League’s website, llli.org, and U.S.-based phone line, 877–4-LA LECHE (877–452–5324), can both lead you to your closest local group, and that’s a fast route to anything else you might need.) Buy the grocery basics, and keep easy, healthy snacks on hand. Get dinner—any dinner! Nights can be tough at first. Be flexible about where and when everyone sleeps. Going to bed early helps! Do more than your share. You may be what keeps the household running for a while. Everything won’t get done. Talk about what’s most important to her—a clean kitchen? a cleared desk?—and do that first. Get home on time. You’re like a breath of fresh air for mother and baby both. Helping out means helping emotionally, too. Remind her how much you love her, how wonderful she looks, and what a great job she’s doing. There she is, holding your child. She really is beautiful, isn’t she? Remind her that this part is temporary. Most women feel it takes at least six weeks to start to have a handle on this motherhood thing. Life will settle down. But it takes a while.
La Leche League International (The Womanly Art of Breastfeeding)
As companies get larger, with a broader following of investors, it becomes awfully tempting to get into that jet and go up to Detroit or Chicago or New York and speak to the bankers and the people who own your stock. But since we got our stock jump-started in the beginning, I feel like our time is better spent with our own people in the stores, rather than off selling the company to outsiders. I don’t think any amount of public relations experts or speeches in New York or Boston means a darn thing to the value of the stock over the long haul. I think you get what you’re worth. Not that we don’t go out of our way to keep Wall Street up to date on what’s going on with the company. For the last few years, in fact, a group called the United Shareholders Association has voted us the number-one company in the U.S. based on our responsiveness to shareholders. What
Sam Walton (Sam Walton: Made In America)
Owning the U.S. “market” means the whole shooting match—the Wilshire 5000. The granddaddy of all “total-market” funds is the Vanguard Total Stock Market Index Fund. With rock-bottom expenses of 0.20%, it is a superb choice. Since its inception in 1992, it has done an excellent job of tracking the Wilshire 5000,
William J. Bernstein (The Four Pillars of Investing: Lessons for Building a Winning Portfolio)
The best choice for your equity investments is a fund indexed to the total world stock market. If you are truly uncomfortable investing in “foreign” stocks, you could choose a domestic total stock market fund. We recommend that you be diversified internationally because the United States represents less than half of the world’s economic activity and stock market capitalization. For your bonds, choose a total U.S. bond market index fund.
Burton G. Malkiel (The Elements of Investing: Easy Lessons for Every Investor)
Large-cap U.S. Stock S&P 500 Index Midcap U.S. Stock S&P Midcap 400 Index Small-cap U.S. Value stock Russell 2000 Value Index Non-U.S. Developed stock MSCI EAFE Index Non-U.S. Emerging stock MSCI Emerging Markets Index Real Estate Dow Jones U.S. Select REIT Index Natural Resources Goldman Sachs Natural Resources Index Commodities Deutsche Bank Liquid Commodity Index U.S. Bonds Barclays Capital Aggregate Bond Index Inflation Protected Bonds Barclays Capital U.S. Treasury Inflation Note Index Non-U.S. Bonds Citibank WGBI Non-U.S. Dollar Index Cash 3-Month Treasury Bill
Craig L. Israelsen (7Twelve: A Diversified Investment Portfolio with a Plan)
The top 1 percent of all U.S. households owns 38.3 percent of all stocks. The top 10 percent owns roughly 81 percent. The bottom 90 percent owns just over 18 percent of the stocks held by households in the United States (Table 11.5). Fully 50 percent of U.S. households own no stocks. Even among those who do hold stocks, most own them through pension and retirement funds, where they are not accessible for general use.
Kenneth J. Guest (Cultural Anthropology: A Toolkit for a Global Age)
because there is no such thing on Wall Street as too many acronyms, became known as the SIP. The thirteen stock markets piped their prices into the SIP, and the SIP calculated the NBBO. The SIP was the picture of the U.S. stock market most investors saw. Like a lot of regulations, Reg NMS was well-meaning and sensible. If everyone on Wall Street abided by the rule’s spirit, the rule would have established a new
Michael Lewis (Flash Boys)
whisper of a smile
Scott Patterson (Dark Pools: The Rise of the Machine Traders and the Rigging of the U.S. Stock Market)
Only four companies—Proctor & Gamble, General Electric, AT&T, and DuPont—have survived on the Dow Jones index of the top-thirty U.S. industrial stocks since the 1960s.
Ruchir Sharma (Breakout Nations: In Pursuit of the Next Economic Miracles)
The 2012 Ibbotson® Stocks, Bonds, Bills, and Inflation® Classic Yearbook, published by Morningstar, Inc., is one of the best sources of up-to-date information regarding the performance of various U.S. capital market investment alternatives. The data cover the period from 1926 to the present.
Roger C. Gibson (Asset Allocation: Balancing Financial Risk)
If your 401(k) is lucky enough to have Vanguard funds, look for, respectively, the (U.S.) Total Stock Market Index Fund, Total International Stock Index Fund, and either the Short-Term Bond Index or Total Bond Market Index Fund. As already mentioned, the Fidelity Spartan series is also excellent: the Total Market Index, International Index, and U.S. Bond Index (or Short-Term Treasury Bond Index) funds.
Anonymous
He didn’t buy U.S. Treasury bonds, or stock in companies outside of Silicon Valley, or for that matter stock in anything outside the outrageously volatile Internet sector.
Michael Lewis (The New New Thing: A Silicon Valley Story)
Eighteen months after Netscape was created, and before it had made a dime, Netscape sold shares in itself to the public. On the first day of trading the price of those shares rose from $12 apiece to $48. Three months later it was at $140. It was one of the most successful share offerings in the history of the U.S. stock markets, and possibly the most famous.
Michael Lewis (The New New Thing: A Silicon Valley Story)
Stock investors should expect periods of time when equities do not make money after inflation. It is the nature of investment risk. This is also why time in the market is critical to stock investors. In the long run, equities have outpaced inflation by a wide margin, and they are expected to remain one of the best real return investments in the future. You have to stay invested during all market conditions to benefit from the gains. U.S.
Richard A. Ferri (All About Asset Allocation (Professional Finance & Investment))
I’m speaking here about the classic index fund, one that is broadly diversified, holding all (or almost all) of its share of the $15 trillion capitalization of the U.S. stock market, operating with minimal expenses and without advisory fees, with tiny portfolio turnover, and with high tax efficiency. The index fund simply owns corporate America, buying an interest in each stock in the stock market in proportion to its market capitalization and then holding it forever.
John C. Bogle (The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns (Little Books. Big Profits))
I believe that the Total Stock Market Index Fund should be the investment of choice for most investors, covering as it does the entire U.S. stock market, and
John C. Bogle (John Bogle on Investing: The First 50 Years (Wiley Investment Classics))
At one time or another, most of us have seen a plot of capital wealth looking something like Figure 1-1, demonstrating that $1 invested in the U.S. stock market in 1790 would have grown to more than $23 million by the year 2000. Unfortunately,
William J. Bernstein (The Four Pillars of Investing: Lessons for Building a Winning Portfolio)
When playing a bear market, the same rules hold: You want to diversify your risks, especially knowing that collapses move even faster than rallies. You need to decide how much safe cash or near cash you want to hold to sleep at night and to handle financial emergencies, like the loss of your job or your house. Then decide how much to put into longer-term high-quality bonds, like those 30-year Treasuries and AAA corporates, but I think it’s still premature to make this move at the time of this writing, in August 2017. Then decide how much you want to put into a dollar bull fund or the ETF UUP, which tracks the U.S. dollar versus its six major trading partners. If you’re willing to risk part of your wealth, you can also bet on financial assets going down—from stocks to gold. Stocks are the one type of financial asset that goes down in either a deflationary crisis, like the 1930s, or an inflationary one, like the 1970s. So shorting stocks is the best way to prosper in the downturn, either way. But don’t leverage this bet. The markets are simply too volatile. You can short the stock market with no leverage by simply buying an ETF (exchange-traded fund) like the ProShares Short S&P 500 (NYSEArca: SH). It’s an inverse fund on the S&P 500, so if the index goes down 50 percent, you make 50 percent. The ProShares Ultrashort (NYSEArca: QID) is double short the NASDAQ 100, which is likely to get hit the worst. If you make this play, just do a half share, to avoid that two-times leverage (hold the other half in cash or short-term bonds). Direxion Daily Small Cap Bear 3X ETF (NYSEArca: TZA) is triple short the Russell 2000, which is also likely to lead on the way down. So buy only a one-third share of this one, to remain without leverage. (That means the money you allocate here should be one-third in TZA and two-thirds in cash, to offset the leverage.) And unlike the gold bugs, I see gold collapsing. It’s an inflation hedge, not a deflation hedge. If gold rallies back as high as $1,425—on my predicted bear-market rally—then it could easily drop to around $700 within a year. Your last decision is whether to risk some of your funds betting on gold’s downside, for the greatest potential returns. You can buy DB Gold Double Short ETN (NYSEArca: DZZ)—double short gold—at a half share, to offset the leverage, or just simply short GLD, the ETF that follows gold. There you have it. How to handle the coming crash.
Harry S. Dent (Zero Hour: Turn the Greatest Political and Financial Upheaval in Modern History to Your Advantage)
TAX-SAVVY IDEAS We suggest 14 tax-reducing ideas for tax-savvy investors. Most are easy to understand and to implement. We can think of no better way for most taxpayers to maximize their after-tax returns. Use tax-advantaged accounts (401(k), 403(b), IRAs, 529 tuition plans, etc.). Buy fund shares after the distribution date. Place tax-INefficent funds in retirement accounts, and tax-Efficient funds in taxable accounts. Use tax-managed or tax-efficient index funds in taxable accounts. Avoid balanced funds (stocks and bonds) in taxable accounts. Keep taxable fund turnover low to avoid capital-gains taxes. Avoid short-term gains by holding for more than 12 months. Sell losing shares before year-end (tax-loss harvest). Sell profitable shares after the new year (to delay tax payment). Determine the most favorable tax-basis method before selling fund shares. Consider municipal bonds and U.S. Savings Bonds for taxable accounts. During years of low income, consider converting to a Roth. Consider gifts to charities of securities with large capital gains. Appreciated holdings in taxable accounts are capital gains and income tax free if left to heirs.
Taylor Larimore (The Bogleheads' Guide to Investing)
What’s Your Foreign Policy? Investing in foreign stocks may not be mandatory for the intelligent investor, but it is definitely advisable. Why? Let’s try a little thought experiment. It’s the end of 1989, and you’re Japanese. Here are the facts: Over the past 10 years, your stock market has gained an annual average of 21.2%, well ahead of the 17.5% annual gains in the United States. Japanese companies are buying up everything in the United States from the Pebble Beach golf course to Rockefeller Center; meanwhile, American firms like Drexel Burnham Lambert, Financial Corp. of America, and Texaco are going bankrupt. The U.S. high-tech industry is dying. Japan’s is booming. In 1989, in the land of the rising sun, you can only conclude that investing outside of Japan is the dumbest idea since sushi vending machines. Naturally, you put all your money in Japanese stocks. The result? Over the next decade, you lose roughly two-thirds of your money. The lesson? It’s not that you should never invest in foreign markets like Japan; it’s that the Japanese should never have kept all their money at home. And neither should you. If you live in the United States, work in the United States, and get paid in U.S. dollars, you are already making a multilayered bet on the U.S. economy. To be prudent, you should put some of your investment portfolio elsewhere—simply because no one, anywhere, can ever know what the future will bring at home or abroad. Putting up to a third of your stock money in mutual funds that hold foreign stocks (including those in emerging markets) helps insure against the risk that our own backyard may not always be the best place in the world to invest.
Benjamin Graham (The Intelligent Investor)
The ideal way to dollar-cost average is into a portfolio of index funds, which own every stock or bond worth having. That way, you renounce not only the guessing game of where the market is going but which sectors of the market—and which particular stocks or bonds within them—will do the best. Let’s say you can spare $500 a month. By owning and dollar-cost averaging into just three index funds—$300 into one that holds the total U.S. stock market, $100 into one that holds foreign stocks, and $100 into one that holds U.S. bonds—you can ensure that you own almost every investment on the planet that’s worth owning.7 Every month, like clockwork, you buy more. If the market has dropped, your preset amount goes further, buying you more shares than the month before. If the market has gone up, then your money buys you fewer shares. By putting your portfolio on permanent autopilot this way, you prevent yourself from either flinging money at the market just when it is seems most alluring (and is actually most dangerous) or refusing to buy more after a market crash has made investments truly cheaper (but seemingly more “risky”).
Benjamin Graham (The Intelligent Investor)
When you are familiar with something, you have a distorted perception of it. Fans of a sports team think their team has a higher chance of winning than nonfans of the team. Likewise, investors look favorably on investments they are familiar with, believing they will deliver higher returns and have less risk than unfamiliar investments. For example, Americans believe the U.S. stock market will perform better than the German stock market; meanwhile, Germans believe their stock market will perform better.26 Similarly, employees believe the stock of their employer is a safer investment than a diversified stock portfolio.27
John R. Nofsinger (The Psychology of Investing)
Let’s say you can spare $500 a month. By owning and dollar-cost averaging into just three index funds—$300 into one that holds the total U.S. stock market, $100 into one that holds foreign stocks, and $100 into one that holds U.S. bonds—you can ensure that you own almost every investment on the planet that’s worth owning.
Benjamin Graham (The Intelligent Investor)
In 1982, his biggest investment was Treasury bonds; right after that, he made Chrysler his top holding, even though most experts expected the automaker to go bankrupt; then, in 1986, Lynch put almost 20% of Fidelity Magellan in foreign stocks like Honda, Norsk Hydro, and Volvo. So, before you buy a U.S. stock fund, compare the holdings listed in its latest report against the roster of the S & P 500 index; if they look like Tweedledee and Tweedledum, shop for another fund.7
Benjamin Graham (The Intelligent Investor)
There’s no good reason ever to pay more than these levels of annual operating expenses, by fund category: Taxable and municipal bonds: 0.75% U.S. equities (large and mid-sized stocks): 1.0% High-yield (junk) bonds: 1.0% U.S. equities (small stocks): 1.25% Foreign stocks: 1.50%9
Benjamin Graham (The Intelligent Investor)
He found the race to zero deeply troubling. “People (machines) now have to race to be the first person at a fixed price level,” he wrote in a July 2011 e-mail. “This has the effect of forcing marketplaces to compete in latency. You end up with exactly what you have now—people spending millions (billions?) of dollars to save milliseconds (microseconds soon?). What an expensive and needless mess. You could probably find a cure for cancer in a year if you just reassigned all the smart people who are now working on this artificially created and otherwise useless problem.
Scott Patterson (Dark Pools: The Rise of the Machine Traders and the Rigging of the U.S. Stock Market)
Put simply, if both a U.S. Treasury note and small company stock appeared likely to return 7 percent per year, everyone would rush to buy the former (driving up its price and reducing its prospective return) and dump the latter (driving down its price and thus increasing its return). This process of adjusting relative prices, which economists call equilibration, is supposed to render prospective returns proportional to risk.
Howard Marks (The Most Important Thing: Uncommon Sense for the Thoughtful Investor)
Today indexing is widely considered the safest and best way for most people to invest in the stock market. If you own the S&P 500 index, you are basically guaranteed to get the same long-term return of the U.S. large-cap stock market, less investment expenses.
Matthew R. Kratter (A Beginner's Guide to the Stock Market: Everything You Need to Start Making Money Today)
merchantman sunk in the Atlantic, the 500th U.S. ship lost to U-boats since Pearl Harbor. The domestic news was also war-related, if less febrile: the first meatless Tuesday had gone well in New York; penitentiary inmates with only one felony conviction were urged to apply for parole so they could serve in the Army; and a survey of department stores in Washington revealed that “there aren’t any nylon stockings to be had for love or money.
Rick Atkinson (An Army at Dawn: The War in Africa, 1942-1943)
It was so complex. The number of destinations for trading stocks was maddening. There were four public exchanges: the NYSE, Nasdaq, Direct Edge, and BATS (the latter two, which specialized in high-speed trading, appeared on the scene in 2005 and 2006, respectively). Inside each of those exchanges were various other destinations. The NYSE had NYSE Arca, NYSE Amex, NYSE Euronext, and NYSE Alternext. Nasdaq had three markets. BATS had two. Direct Edge had EDGA, which had no “maker-taker” system, and EDGX, which did.
Scott Patterson (Dark Pools: The Rise of the Machine Traders and the Rigging of the U.S. Stock Market)
Strange as it may seem — and irrational as it would be in a more logical system of world diplomacy — the dollar glut is what finances America’s global military build-up. It forces foreign central banks to bear the costs of America’s expanding military empire. The result is a new form of taxation without representation. Keeping international reserves in dollars means recycling dollar inflows to buy U.S. Treasury bills — U.S. government debt issued largely to finance the military spending that has been a driving force in the U.S. balance-of-payments deficit since the Korean War broke out in 1950. [...] “China National Offshore Oil Corporation go home” is the motto when foreign governments try to use their sovereign wealth funds (central bank departments trying to figure out what to do with their dollar glut) to make direct investments in American industry, as happened when China’s national oil company sought to buy Unocal in 2005.[...] So Europeans and Asians see U.S. companies pumping more dollars into their economies not only to buy their exports (in excess of providing them with goods and services in return), not only to buy their companies and commanding heights of privatized public enterprises (without giving them reciprocal rights to buy important U.S. companies), and not only to buy foreign stocks, bonds and real estate. The U.S. media neglect to mention that the U.S. Government spends hundreds of billions of dollars abroad — not only in the Near East for direct combat, but to build military bases to encircle the rest of the world, and to install radar systems, guided missile systems and other forms of military coercion, including the “color revolutions” that have been funded all around the former Soviet Union.
Michael Hudson (The Bubble and Beyond)
Whenever I see everyone rushing to bet their money on what’s hot, I remind myself of Bernard Baruch, the Wall Street legend and adviser to U.S. presidents. During the stock-market craze of the late 1920s, Baruch stopped for a shoeshine one day and the guy working on his shoes began giving him stock tips. His shoes looking fine, Baruch headed back to the office—and sold everything. I had my own Bernard Baruch moment in mid-1998 as most people were transfixed by the astonishing and continued rise of a group of glamour tech stocks.
Jim Rogers (Hot Commodities: How Anyone Can Invest Profitably in the World's Best Market)
Faulty argument #1: You don’t need international stocks, because American multinational companies have a large percentage of their operations overseas. This gives you enough international exposure. To see the flaw in this logic is easy. During the five years between 2003 and 2007, the U.S. stock market earned a handsome 91
Allan S. Roth (How a Second Grader Beats Wall Street: Golden Rules Any Investor Can Learn)
percent return, but international stocks returned 187 percent. The very fact that the returns differentials could be this large between U.S. and international stocks shows that you don’t get enough international exposure by just buying U.S. stocks. Faulty argument #2: One should overweight international stocks, because most of the world’s economic growth will come from overseas. I certainly agree with this argument, but that does not translate into international stocks outpacing U.S. stocks. That’s because it’s not exactly a secret that countries like China and India are growing faster than the United States, and this knowledge is already priced into the market. This is the same phenomenon as Google being priced at much higher multiples than Ford, because we know Google has better economic prospects. Remember that beaten-up value stocks tend to make better investments than the star growth stocks. The same may be true in that the fastest-
Allan S. Roth (How a Second Grader Beats Wall Street: Golden Rules Any Investor Can Learn)
In 1857, to encourage continued settlement of the West, Congress passed the Pacific Wagon Road Act, which among other improvements to the trail called for the surveying of a shorter route to Idaho across the bottom of the Wind Rivers and the forested Bridger-Teton wilderness to the west. Frederick W. Lander, a hotheaded but experienced explorer and engineer, was assigned the job. He made Burnt Ranch the trailhead and main supply depot for the trail-building job, which became one of the largest government-financed projects of the nineteenth century. Lander hired hundreds of workers from the new Mormon settlement at Salt Lake and supplied the enterprise with large mule-team caravans that ferried provisions and equipment from U.S. Army depots in Nebraska and eastern Wyoming. “With crowds of laborers hauling wood, erecting buildings and tending stock,” writes historian Todd Guenther, “the area was a beehive of activity.” The engineers, logging crews, and workers quickly hacked out what became known as the Lander Cutoff, which saved more than sixty miles, almost a week’s travel, across the mountains. In places, the Lander Cutoff was a steep up-and-down ride, but the route offered cooler, high terrain and plentiful water, an advantage over the scorching desert of the main ruts to the south. Eventually an estimated 100,000 pioneers took this route, and the 230-mile Lander Cutoff was considered an engineering marvel of its time. This
Rinker Buck (The Oregon Trail: A New American Journey)