Weekend Reading – Market Smackdown edition
Hey Everyone,
Welcome to some new Weekend Reading, the market smackdown edition.
In case you missed any recent posts, here they are!
Before I started semi-retirement/part-time work this month, I shared some big retirement mistakes I hope to avoid in the coming years.
After reading about a 23-year-old athlete earning $2 million, I wondered if he was “set for life”?
And finally, I shared our latest dividend income update below – despite the stock market going down our income stream went up!
Weekend Reading – Market Smackdown edition
Wild week.
10% tariffs.
Then 104% tariffs.
Then reciprocal 84% tariffs.
I can’t keep up…
Quite the infographic this week on this subject:
Given the market turbulence, sage words from one Globe and Mail article I read this week (subscription via Carrick on Money) which was the inspiration for this headline:
“I’ve experienced every single smackdown in the market for over fifty years,” Doug Hartt told me by e-mail recently. “At some point in each market meltdown, my portfolio has dropped equal to the relevant indexes. It’s always come back.”
“Take heart from Mr. Hartt. The market does always come back over time. Declines like we’re seeing right now are hard to watch, but they do build your investing calluses.”
Indeed.
So staying the investing course is usually a good idea as tough as that may be.
When we look at the S&P 500 corrections over the last 80+ investing years it looks like this:
Source: with thanks to Ben Carlson, A Wealth of Common Sense.
I remind myself of this graphic as well when it comes to corrections:
So, our plan is to be ready for this at all times: given a stock market correction happens at least once every two years, of 10% or more declines, keep cash/cash equivalents ready – always.
I don’t know if any tariffs are here to stay. Maybe they are.
I don’t know how much the stock market will continue to react to tariff news.
I do know I need to keep my investing plan intact.
More Weekend Reading – Market Smackdown edition
Always good stuff from Nick Maggiulli on how not to invest.
Interesting data I read from Wealthsimple about redefining the retirement years. The way I see it, retirement planning isn’t just about money – it’s about lifestyle choices. There are tradeoffs. We’ve recently made ours by deciding to work part-time.
Amazing stuff on Brookfield here:
With thanks from Farnam Street – The Knowledge Project above. Worth the watch IMO. On The Knowledge Project: a rare interview with Bruce Flatt, the quiet force behind Brookfield’s 19% annual returns for 30 years; the investment principles that transformed @Brookfield into a $1T global powerhouse. @farnamstreet
A nice interview with a fellow blogger From Labour to Leisure here.
Have a great weekend, everyone!
Mark
Funny how we (myself included) cling to your blogs now we see our careful cared for money shrumple away. Sometimes a president sits online in bi weekly blog…
I read a comment about how the economy was facing considerable turbulence. This ain’t turbulence. This is some self-proclaimed genius 18 year old kid in the pilot’s seat yanking on all the controls yelling out “let’s see what this baby can do!”. Will the wings fall off before someone kicks his butt off the flight deck? Tighten up the parachute harness and keep my hands on the ejection handle I guess. 🙁
Ya, this is hardly genius or anything remotely like it at work these days.
I would hope the administration implodes a bit before things really come crashing down but I don’t see ego or greed going anywhere, anytime soon.
I like your analogies. 🙂
Mark
I am starting to wonder if going forward, the USA may not be the best place in the world to invest. Like they say, “past performance is no guarantee of future results.” The recent sell-off in US Treasuries signals that the US may not be so attractive to foreigners. When equities & bonds move in tandem, it tends to signal a deeper fissure in financial markets. With this re-setting of global trade, makes you wonder?
I think the U.S. could be in for a multi-year rough patch. We’ll see. But yes, makes you wonder what’s ahead for sure.
Mark
In case your readers missed it, there are accusations of insider trading after the Orange Clowns cryptic “it’s a great time to buy” announcement. You have to question those well-timed options trades ahead of the Tariff pause. And then the high trade volumes prior to that announcement are suspicious. Like I said in a previous post, time will reveal that the Clown show in Washington is set up to benefit Trump and his cronies. Market manipulation, no doubt. Any opinions on this or on how much worse this Tariff chaos might get?
Vote in a clown, get a circus.
Just insane this is happening to be honest.
If I had to guess, the tariff war will settle down eventually once USMCA is redone…but the U.S. demands in that agreement could be a bit insane. We shall see.
Thanks for your comment,
Mark
Hey Mark
Really enjoy your content . Thanks
Is there another way to get your weekend reading post without all the ads associated with it. I find the flow very difficult to follow the way it is presented to me on your website.
Thanks
Grant
Thanks very much, Grant.
I will see what I can adjust with time for the ads. They tend to be a standard format by my provider.
How are things going for you so far this year?
Mark
Hey Mark
Another wonderful market plunge ! Thanks Donnie T :o) I don’t know why Donnie T had Charles Schwab etc in the Oval office bragging about how much they made on the market bounce. That’s disturbing. The one thing I am most worried about, once these tariffs take hold and start to affect businesses and their profits, how will it impact my dividend income stream? Go Corey Conners, just love the TV coverage that the Masters has.
Yes, wild.
OMG, Go Corey!!!!
Mark