Resources tips
Financial Tips
Investor Psychology
Mar 2020 | Improve your decision making process |
Jan 2015 | Best of BFM Part II |
Jan 2014 | 6 fun videos |
Jan 2014 | Your personal guide to peace of mind |
Jan 2012 | Best of BFM Part I |
Nov 2011 | Be aware of emotion |
Sept 2011 | Put things in perspective |
Aug 2011 | Human brain & decision making |
July 2011 | Investor psychology |
Jun 2011 | Cultural differences |
May 2011 | Investment decision making |
Jan 2011 | Understand behavioral finance |
Nov 2010 | Be Positive |
Nov 2010 | Investor's performance |
Sept 2010 | We cannot analyze all the information |
Sept 2010 | Videos on financial economics |
Aug 2010 | Train your brain to win |
Jun 2010 | Investors cannot think for themselves |
Did you know?
Strategy
- In 30 years, $100,000 would become $432,194 if invested at 5%, but $1,006,266 if invested at 8%. That is 132% more. Your investment choices make a big difference!
- While the S&P 500 Index earned an average annual return of 8.4% during 1988-2008 ($1 would have become $5), the average individual investor earned an annual return of just 1.9% ($1 would have become $1.50).
- $10,000 invested in the S&P 500 Index in February 1989 would have become $29,382 in February 2009. If an investor had missed the best 30 days of daily return, it would have become $6,531 (77% less). If an investor had missed the best 10 days, it would have become $15,123 (48% less).
Past Market Performance
- From 1926 to 2008, large company stocks had a 9.6% annual return vs. 5.7% for government long bonds and 3.7% for Treasury bills.
- Over any 10-year rolling period from 1969 to 2008, stocks had only a 1% probability of a negative absolute return (vs. 37% for gold or commodities).
- Housing price increases since 1890 have been close to 0% factoring in the effects of inflation. Housing prices adjusted for inflation were also flat between 1945 and 2000.
Economy
- With 3% inflation, $1M in 30 years is equivalent to $412,000 today.
- By 2017, social security costs may exceed revenues.
- From 1967 to 1984, the average inflation rate was close to 7% (vs. close to 3% average for the past 100 years).
Research Tools*
Calculators*
“If you fail to plan, you’re planning to fail.” - Benjamin Franklin
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