Quote for the Week
Financial markets, then, are volatile and unpredictable. Importantly, the markets themselves are far more volatile than the underlying businesses that they represent, which collectively account for their aggregate market capitalization. Put another way, investors are more volatile than investments. Economic reality governs the returns earned by our businesses, and Black Swans are unlikely. But emotions and perceptions — the swings of hope, greed, and fear among the participants in our financial system — govern the returns earned in our markets. Emotional factors magnify or minimize this central core of economic reality, and Black Swans can appear at any time. — John Bogle (source)
From the Archives
Last Call
- Wealth: Five Formulas and a Recipe – Sapient Capital
- Sentiment Cycles Created by Institutional Investors – Klement on Investing
- Peter Lynch: The Wisdom of Walking Away – Kingswell
- Ramit Sethi on Financial Literacy and Living Richly (podcast) – Masters in Business
- A Fireside Conversation with Howard Marks (video) – Value Investing Conference
- The Lady with Hypnotic Eyes – G. Hoots
- Why AI Will Save The World – M. Andreessen
- The Original AI Doomer: Dr. Norbert Wiener – Pessimists Archive
- An Uncertain Energy Transition a Century Ago – JSTOR Daily
- How the U.S. Almost Became a Nation of Hippo Ranchers – Smithsonian
