Author Archives: Liquid Independence
When buying the dip doesn’t work this time. Often when the stock market sells off aggressively in a day or two, it’s because traders have overreacted. Stocks typically re-adjust soon after with a bounce. This pattern had been the norm for decades. But 2022 is special. Maybe this time really is different. Here’s how the S&P 500 index… Read More »
How to invest in a bear market Dollar cost averaging requires discipline and continuing to buy into the market even when things look awful. For net accumulators, a 5% to 10% decline in the markets like we just had last week is a buying opportunity. But it’s not enough to simply say, “Yes, I will buy when the… Read More »
Who does higher interest rates hurt the most? The obvious answer is people who have variable rate mortgages. But there’s a group of people that are even more at risk, and are hurting more from the impact of higher interest rates. They are renters. Why renters? Because as the cost to borrow becomes more expensive, would-be buyers who… Read More »
John C. “Jack” Bogle was an investor and philanthropist who founded the Vanguard Group and pioneered index investing. Vanguard has become one of the largest investment management companies in the world with about $7 trillion of assets under management. Bogle built Vanguard as essentially a non-profit organization because it is owned by the investors in its funds. Credited… Read More »
Are you a trader or an investor? Trading implies buying and selling regularly. While investing usually means buying and holding. But what if you plan to buy low and sell high quickly, but your trade only heads lower? At this point if you decide to hold on and maybe even buy more to lower your average cost does… Read More »
More investors are dipping their toes into the options market. Last Friday over $2 TRILLION of option contracts expired, an incredible volume. Personally I wanted to challenge myself in August and see if I could make $10K in net premiums. It turned out to be a lot of fun! And more importantly, I learned how to make better… Read More »