“One person’s financial assets are another’s financial liabilities (i.e., promises to deliver money). When the claims on financial assets are too high relative to the money available to meet them, a big deleveraging must occur.” – Ray Dalio, Big Debt Crises
“Debt
This week the Trustees of the Social Security & Medicare Trust funds released their annual report. They reported under current law Medicare will be insolvent by 2026 and Social Security by 2035. That’s in 7 & 16 years respectively. Their assumptions also include steady 3% economic growth with no
Despite the post-Christmas rally in the stock market, like death and taxes there is something investors cannot avoid — bear markets. The way our brains are programmed, the longer we go without experiencing something, the less likely we are to believe it can happen (this is called Availability bias or
The Federal Reserve has come under intense scrutiny, not only from our President, but also from the stock market bulls who are blaming them for the 2018 sell-off. Specifically they are going after Fed Chairman Jay Powell saying he “doesn’t understand how the markets work” or
SEM applies a Behavioral Approach to Investing. Our total portfolio approach is designed to overcome the most common behavioral biases. To understand the importance of this we need to first understand the biases. About two years ago I posted a video clip from one of our client seminars where I
