Tag Archives | return

Dow Jones

Whew! We are back near market peaks! Yippee? Or, oh-no?

The market (Dow) closed today (Friday the 25th of January) at  13,895.98 near the market peak of 14,164.53 on October 9th 2007. This means the Dow is now within 268.55 points of that record high (or under 2% within the record … certainly within reach of going over the record). Emotionally, this appears to be cause for […]

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interest rate

Should you focus on just dividends?

Dividends appear to be easy to focus on because their returns are expressed in yield, which we translate to an interest rate in our brains. People compare this “interest rate” to returns from stocks, or to CDs, savings accounts, etc., in order to make a selection as to which one they prefer … of course they gravitate towards the higher […]

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The role of speculators in markets

Whenever prices rise (or fall) a lot, it is popular to find a “faceless crowd” to place that blame onto … “it must be somebody’s fault … and it’s ‘them’ … “ In economics it is probably better explained through the “invisible hand” of supply and demand. Milton Friedman’s explanation of how speculators affect markets […]

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Returns vs Contributions Comparisons

Are market returns really the key to your portfolio value?

Short answer … No. The key during the early years are your contributions. (See the Dark Blue line). You need to plant the seeds that can then grow later. I show below how it took 13 years for returns to overcome the power of contributions. And of course, you control contributions while your control over […]

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