Wednesday Reading List

Winning the Investment Game – Bill Gross’s journey from a young securities analyst to the Bond King to his contentious resignation from the firm he co-founded is a fascinating story with many important lessons. Mary Childs’s book shares them all. I was fortunate to interview Mary for our Wealthy Behavior podcast and recap our conversation here.

Tips to Recession Proof Your Finances

At Heritage Financial, our Investment Team feels the U.S. is likely already in a recession or will be entering one soon. With that in mind, our financial planning and investment teams have gathered several tips to help you recession proof your finances.

The British pound just plummeted: What it means for the U.K., tourists

The British pound plunged to a record low against the dollar. Explaining why and what it means for world economies and tourism.

US Housing Prices Fall for First Time Since 2012

For the first time in a decade an index of home prices in 20 U.S. cities had a monthly drop.

Calling it poor monetary policy is an understatement, Says Prof. Jeremy Siegel on Fed hikes

Jeremy Siegel, professor at the Wharton School, joins the ‘Halftime Report’ to discuss the Fed’s decision to raise rates after commodity and asset price dip, arguing that the Fed is oversteering and overlooking data that the economy is slowing.

See Also: What is the Fed Doing?

What’s Next: Good, Bad, & Ugly

The persistence of global inflation could determine which of the three paths central banks may follow and which market qualities investors might consider for their portfolios.

How to turn stock losses into tax savings, and other ways to trim your tax bill

It’s tough to fight inflation when you have no control over the rising costs of many goods and services. There’s also not much you can do to stop interest rates from climbing or stocks from falling, either. Still, you may have more control than you realize when it comes to another financial pain point that can significantly impact your budget — your taxes. 

This Should Have Been a Great Year for Gold. Here’s Why It Isn’t.

The yellow metal is supposed to be a haven when stocks are a mess and inflation is up, but it is down about 8% this year.

Incentives: The Most Powerful Force In The World

What makes incentives powerful is not just how they influence other people’s decisions, but how blind we can be to how they impact our own.

Book Recommendations

Fortune’s Formula: The Untold Story of the Scientific Betting System That Beat the Casinos and Wall Street by William Poundstone

In 1956 two Bell Labs scientists discovered the scientific formula for getting rich. One was mathematician Claude Shannon, neurotic father of our digital age, whose genius is ranked with Einstein’s. The other was John L. Kelly Jr., a Texas-born, gun-toting physicist. Together they applied the science of information theory―the basis of computers and the Internet―to the problem of making as much money as possible, as fast as possible.

Shannon and MIT mathematician Edward O. Thorp took the “Kelly formula” to Las Vegas. It worked. They realized that there was even more money to be made in the stock market. Thorp used the Kelly system with his phenomenally successful hedge fund, Princeton-Newport Partners. Shannon became a successful investor, too, topping even Warren Buffett’s rate of return. Fortune’s Formula traces how the Kelly formula sparked controversy even as it made fortunes at racetracks, casinos, and trading desks. It reveals the dark side of this alluring scheme, which is founded on exploiting an insider’s edge.

Shannon believed it was possible for a smart investor to beat the market―and William Poundstone’s Fortune’s Formula will convince you that he was right.​