risk Archives - Runnymede Capital Management

5 Reasons Why Market Timing Is Not Always Bad

Michael Batnick wrote an article on The Irrelevant Investor blog entitled, “Should I Time the Market?” In it, he responded thoughtfully to a 30-something investor who posed a question about timing the market. Given where valuations are, and that he has many decades ahead of him, would it make sense to wait for a better pitch over the next five years? This is an excellent question that I think deserves further discussion.

7 months later: Bitcoin from mania to pain trade

Roughly 7 months ago, I wrote the blog post titled “Bitcoin mania will end in tears.” Given my experience during the internet stock bubble of 1999, it felt like bitcoin and crypto were in a similar period of boom soon to be followed by bust. Those who said “this time is different” were proven wrong, again.

Experts are starting to see parallels to the financial crisis?

This morning on Yahoo Finance, the top story is titled “Market experts are starting to see parallels to the financial crisis.” According to writer Dion Rabouin, some market analysts and fund managers believe that the current environment is beginning to look like the early days of the financial crisis of 2007-2009. The key argument is that the volatility products that collapsed on Monday are similar to the leverage in subprime mortgages. Here is an excerpt:

Don’t invest in things you don’t understand

Today I want to give you a tip to keep you out of trouble: never invest in something that you don't understand. That includes bitcoin, MLPs, annuities, structured products and even stocks. This may seem obvious but I have seen people make this simple mistake because they are chasing the hottest thing in the moment. Early in my career, it was internet stocks. People were buying companies with no earnings and no business plan and were simply interested because the price was going up. Years later, it was subprime loans. The worst quality mortgages were sliced and diced and then packaged as supposedly A rated bonds. When things are too good to be true and you can't understand how it is possible, trust your gut and run away as fast as possible.

IM 017: Setting Small Goals to Achieve the Extraordinary | Colin O’Brady

Two-time world record holder, Colin O’Brady embodies what it means to overcome obstacles, test limits, dream big, set goals, and never give up. Apply his lessons to your money and anything you do.

Bitcoin mania will end in tears

Unless you are living under a rock, you surely have heard of bitcoin as it surpassed the $10,000 mark yesterday and briefly topped $11,000. You may have no idea what it is or how it works but the stories of kids turning into multimillionaires in short order are undoubtedly tickling your greedy side. We are all human and can't resist the thought of turning a few dollars into millions and then enjoying ourselves sipping a drink with a tiny umbrella on some exotic beach. But please heed my warning. The bitcoin mania will end in tears for most investors (especially those considering buying late in the game) and unless you are in it for a quick buck and trade, then please don't give into temptation.