The Super Bowl is this weekend, in case you haven’t watched any sports TV over the last few weeks. Like any good investment advisor, I like to tie financial comparisons to any popular event. So, here’s a quick one:
The Super Bowl this year features the Chiefs and Bucs. Both teams have been game-planning for weeks for this matchup. On paper, they’re both as ready as they can be. Once the game starts, however, adjustments on the fly will undoubtedly have to be made. The same goes for your financial planning process. On paper, you can be set up for success. Life always gets in the way. Keep yourself focused on your goals, but flexible in how you get there. Go Chiefs!
Here’s what I’ve been reading this morning:
‘Large Caps are…Underperforming?’ – Michael Batnick – The Irrelevant Investor
- The big names stocks get almost all of the attention, and with good reason. Michael illustrates the insane amount of market share the mega-caps stocks have gained over the last few years. However, he also points out that these big name stocks are underperforming small cap stocks in a few categories.
‘Why Pump & Dumps are Dangerous’ – Cullen Roche – Pragmatic Capitalism
- We all got a crash course example in pump & dump stocks the last few weeks with GameStop and a few other “meme stocks”. Unfortunately, these pump & dumps usually end in catastrophe for the folks piling in late. Cullen explains why it’s so dangerous.
‘The Best Way to Manage Sequence of Return Risk’ – Ben Carlson – A Wealth of Common Sense
- There really is no foolproof way to eliminate sequence of return risk ahead of time because it’s largely just luck. However, Ben offers three ways to try and minimize sequence of return risk throughout your retirement.
- There will undoubtedly be tons of stories coming out over the next few weeks/months regarding what happened with GameStop and consequences of it. One that has already been identified is payment of order flows to brokers, and this article takes a look.
ENJOY!
