Latest from @LizAnnSonders and me is a deeper dive into investing vs. gambling and what we think is a looming financial literacy crisis.
Owning beats hoping. Discipline beats speculation.
https://t.co/7JVJwIFAV8
Reading what the CEO of Anthropic wrote, it is more clear than ever you basically have less than a 5 year window to hyper-gamble your way into elite status or end up a serf for life
We're in the Endgame now.
People think renting a home in Canada has been a mistake for the last ~20 years.
That's easy to believe. But it's wrong.
We modelled renting vs. owning in twelve Canadian cities for the 20 years ending December 2024.
The results surprised even me.
🧵
A study was done on 77,000 accounts at a large discount broker from 1990 to 1996. The findings revealed:
1. Investors are more likely to allow a stock to reach a large loss than they are to allow a stock to attain a large gain; they hold losers too long and sell winners too quickly.
2. The probability of buying additional shares is greater for shares that have lost value than it is for shares that have gained value. Investors may readily double down their bets when stocks decline in value.
3. Investors are more likely to take a small gain than a small loss.
The results would be no different 50 years ago, or 50 years from now.
The market continues to see sectoral rotation, with strength in Financials, Communication Services, and health Care while technology faces short-term headwinds. Investors should consider diversified sector exposure. $XLF, $XLC, $XLV
The $spx is declining today due to stronger-than-expected economic data, including higher job openings and robust services sector activity, which raised concerns about the Federal Reserve delaying interest rate cuts.