The Record Dow
The natural inclination of the mind at a time like this is to assume that the trend of the recent past will continue into the future; that there’s a sort of permanence to current market conditions. As a response, the primary thing I’m saying to clients is “don’t get attached to it because everything is impermanent, especially the market’s level.” That doesn’t mean I predict it’s going to go down. But I do predict it’s going to change, constantly.
Doubling Down
A few nights ago, I finally got a chance to watch Enron: The Smartest Guys in the Room, a movie that perfectly depicts the rise and fall of what was once known as a great company. In the movie, one scene is particularly ominous: The head of HR at Enron is asked if employees should put all of their 401(k) money in Enron stock, to which she enthusiastically replied “Absolutely!”
Oh, Behave!
On a recent vacation to New Zealand, my Kiwi friend Martin told me about his father, Frank, an elderly man who, over his lifetime, owned 26 pieces of real estate. I figured Frank would be sitting pretty now, either living off 1) the income and principal of a huge investment portfolio that holds the sales proceeds of all that real estate or 2) a semi-stable income stream from the real estate he didn’t sell. Unfortunately, neither is true. Frank barely gets by, relying entirely on a modest pension income. If he has any extraordinary expense, Martin will be forced to supplement Frank’s income. So how did this happen?
A Gym-Goer’s Confession
As an avid runner and exercise aficionado, I regularly count on my workouts to keep me balanced and energized. There is something so therapeutic about tying up my shoes, flipping on my iPod and sweating it out. But for one month a year, my gym is the last place I want to be. Every January, hordes of well-intentioned New Year’s “resolutioners” pack into the gym at all hours of the night, stealing equipment from the regulars, only to stop going entirely by the end of the month.
