A different way to think about risk

29 November 2017|

SINGAPORE (Nov 27): People think the stock market is risky because the prices go up and down every minute. If you avoid investing in the stock market because you think it is risky, you are missing out on the big gains from this asset class. If you had invested in Singapore stocks from 1969 until [...]

National Coin-Flipping Contest

20 May 2016|

I would like you to imagine a national coin-flipping contest. Let's assume we get 225 million Americans up tomorrow morning and we ask them all to wager a dollar. They go out in the morning at sunrise, and they all call the flip of a coin. If they call correctly, they win a dollar from [...]

It’s a Marathon, Not a Sprint

3 May 2016|

Market timers like to think they can capture large returns by jumping in the market to profit during periods when stocks are up, and jumping out of the market when stocks are down. This strategy may work in the short run, like a sprinter who overtakes a marathoner at the beginning, but the gains are [...]