Wednesday Reading List
3 Key Retirement Decisions Affected By Higher Yields by Morningstar
There’s been lots written about how higher rates impact markets, but there are financial planning implications as well. Christine Benz points out three: annuity payouts are higher now, the pricing on hybrid long-term care insurance policies has improved a bit and may continue to improve, and delaying Social Security isn’t as advantageous now that you can get higher yield on your earlier benefits.
Related: The “New” Rules of Debt – how to use debt in a higher interest rate environment.
The World Is in for Another China Shock by The Wall Street Journal
China is flooding foreign markets with cheap goods again to boost its economy. Given this and the rest of the world pushing their own manufacturing capabilities, we could see disinflation from the global production glut and more tariffs and protectionism.
Commemorating 45-Years: From the Classroom to the Markets by Jeremy Siegel
This short recap packs a good punch. One of the best people to follow and learn from in the industry shares that he’s not worried about the job market and economy, thinks inflation numbers are getting better, doesn’t think it makes sense to try and time the next Fed rate cut as they will be data dependent, and is starting to get worried about the Magnificent 7 stocks forming a new tech bubble.
Corporate Ozempic by Scott Galloway
Professor Galloway is looking at tech record earnings and margins and ongoing layoffs and isn’t buying the narrative being pushed about why. Instead, he thinks AI is playing a larger role in layoffs than CEOs are willing to admit. “The illusionist’s trick in the Valley right now is getting the media to look over there (trimming fat) while they’re stuffing the rabbit into the hat here (replacing it with AI).”
Charlie Munger – The Architect of Berkshire Hathaway – 2024 Berkshire Hathaway Shareholder Letter by Warren Buffett
This is a must-read every year. Takeaways from this one:
Buffett sharing an important lesson on continuing to grow and improve and not be afraid to ditch your favorite ideas when he credits Munger from pushing him from deep-value investing to buying wonderful companies at fair prices instead of looking for fair companies at wonderful prices.
Ignore market pundits: if they knew what the market was going to do, they wouldn’t be telling you.
Focus on numbers, not narrative.
Picking stocks is hard and given the assets he has to deploy, he favors companies that can deploy additional capital at high returns in the future. And then just sit tight and watch them grow.
One rule never changes: never risk permanent loss of capital as it prevents you from keeping all your money compounding.
ICYMI: Your Money This Week
Looking at the market news and planning tips you need to know, including how to safely take advantage of all-time highs for European and U.S. stocks and saving money on your cable bill.
What Makes a Great Leader? 10 Inspiring Thoughts by Heritage Financial
What makes an effective, visionary leader? In celebration of International Women’s Day (March 8), we are sharing encouraging words from 10 trailblazing women that inspire us all to show up, take risks, embrace failure and be the best leader you can be.