Steadfast Finances

 Investing 101, Investor Psychology         14 comments

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I ran across an interesting bit of research today suggesting that one of the leading ways investors get suckered into investment bubbles, and subsequently decimate our annual performance, is that we are far too concerned with being left out of the money making process, rather than losing our original investment.
As …

 Investing 101, Investor Psychology         6 comments

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If you’re curious why I take most investment advice and the majority of news/analysis from mainstream financial media with a grain of salt, this chart might answer your doubts.

(Note: Y axis is percent increase or decrease.)
At their peak, the mania driven belief in the bubble that these investments were ironclad, …

 Investor Psychology, Personal Finance Tips, Strategic Planning         8 comments

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With so much financial information readily available telling us how to make more money or the nonstop investment advice telling us how to get rich quick, it’s quite obvious that many of us invest too much time and brainpower trying to get our money to make more money instead of …

 Documentary Films, Investing 101, Investor Psychology         6 comments

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Perhaps nothing encompasses the roller coaster ride that was the 2000 to 2009 decade better than David Faber’s The Bubble Decade. If you haven’t seen it, set 45 minutes aside and take a look back at just how gullible we actually were to follow the herd and buy into some …

 Investing 101, Investor Psychology         34 comments

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If you’ve ever wondered why it’s so difficult to ignore peer pressure and why you feel anxiety when expressing a differing opinion from the herd, you might want to blame Ardi and the rest of your human ancestors.
Like most animals on the planet, humans come pre-programmed to notice the behavior …

 Investing 101, Investor Psychology         5 comments

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I’m a little weird in that I rarely read articles or watch television programs that I fully agree with. I find that it makes me consider an alternative point of view or tweaks my thought process to include new variables into the decision making process that my (occasionally arrogant) analytical …

 Investing 101, Investor Psychology         16 comments

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I’ve been pounding the table pretty hard on investment bubbles lately. Probably because in the last decade, I’ve experienced more popped bubbles than I care to remember.
Or perhaps it’s that I’m constantly amazed by the herding behavior of humans. After all, we’re not that different from the rest of the …

 Commodities, Investing 101, Investor Psychology         35 comments

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This is how seasoned commodity traders view the current gold bubble. Whoops! I mean gold rush.
Experienced traders know very well that the gold market is teeming with multibillion dollar hedge funds and professional speculators, which means they are after one thing… fast money!

[RSS & email readers please click to site …

 Commodities, Investing 101, Investor Psychology         39 comments

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The majority of the investing world, like countless times throughout history, has once again found itself spellbound by gold’s luster and I’m here to tell you why I think gold is a bad investment.
I’m feeling another black sheep moment coming on.
Truth is, gold has had a heck of …

 Investing 101, Investor Psychology         10 comments

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Much like everyone else, Wall Street experiences the same basic emotions that all (or most) of us feel when news of an impending disaster (real or fearmongering) strikes.
Why?
Because there are real life human beings pushing the mouse buttons that execute the buy or sell orders during every minute of every …

 Index Funds, Investing 101, Investor Psychology         11 comments

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You would know a bursting bubble if you saw it?  Right?
Take a look at the following chart and tell me what you think.  Doesn’t it look a little suspicious?
Has a bubble formed, or even worse, has it just popped?  Take a good look and tell me what you think.

I know… you’re about …

 Banking, Financial Crisis, Index Funds, Investor Psychology, Market Themes         1 comment

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Earlier today, I heard a financial journalist say one of the most peculiar statements I’ve ever heard about a down day in the stock market.
It’s good to have something bad happen to keep you on your toes.
I’m not sure who came up with that old adage, but I’m not sure …