Millennial Financial Intelligence
Two things happened in markets yesterday and they appear to contradict each other. The Dow Jones Industrial Average hit an all-time high. Broadcom fell 15%, its worst session in over a year, dragging the broader semiconductor index down 2.2%. AMD fell 4%. Intel fell 3%. The surface reading is that the market is healthy and …
In 1924, a Wall Street analyst named Edgar Lawrence Smith sat down to prove something obvious. Bonds were safer than stocks. Everyone knew it. The smart money knew it. The textbooks said it. His job was simply to run the numbers and confirm what the financial establishment already believed. He couldn’t do it. What Smith …
Read moreStocks beat bonds. A man proved it in 1924. The bond market is relearning it now
Right now, everything looks expensive. Stocks at record highs. Gold at record highs. Bitcoin off its peak but still historically elevated. The most rational-sounding response is: I’ll wait for a better entry point. It feels disciplined. It is almost certainly the wrong move. 7 of the 10 best trading days in the last 20 years …
Read moreWhy trying to time the market almost always makes things worse