The Secret To Your Success: 10 Years Of Unwavering Commitment

I strongly believe if you do one hard thing for 10 years in a row, you will achieve results far beyond your expectations. Don’t quit before giving your effort a chance to produce amazing results. My belief of working on something for 10 years to achieve mastery first came from going to high school for four years, college for four years, and then finally business school for three years part-time. It wasn’t until after I went to business school that I felt like I had a solid grasp of finance. 10 years also comes from my experience working at one[…]

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Warning! Beware Of Revealing Your Financial Independence Plans Too Soon

When I started my website in July 2009, I only told my Japanese colleague who sat next to me, nobody else. I didn’t want any colleagues who had influence over my career to know about my personal website. My website was my sanctuary to write about what was on my mind during turbulent times. When I negotiated a severance in February 2012, I almost blew myself up because I couldn’t contain my excitement. I told a couple colleagues what I had done and they immediately spread the word across the entire floor. What was meant to be a smooth and[…]

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5 Runaway Breakout Stocks to Buy

Volatility peaked Thursday afternoon and since then, the market has been on the rebound. Optimism continued on through the weekend and into Monday’s trading session. Overnight, the People’s Bank of China announced a new interest rate reform plan. The goal of the plan was to support small business funding. Also, the Trump Administration granted Huawei an additional 90-day extension on a license that allows the company to conduct some business with American customers. Anything that steps back the trade war rhetoric is bullish for the market. Check out Dave’s Daily Dive video above where I break down the market action[…]

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2019 IPO Scorecard

After several years in which investors saw many up-and-coming firms avoid offering shares in public markets, 2019 is shaping up to be one of the biggest years ever for initial public offerings. With billions available in the private equity markets, many companies chose to avoid the regulatory burden and public scrutiny of listing on major exchanges and reman private until their public valuations exceeded $1B each. The results have been a mixed bag, with some new offerings soaring after the IPO and some languishing below the offering price. Let’s take a look at the biggest IPOs so far this year[…]

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The Inverted Yield Curve And A Recession Could Be Extremely Positive

With the 2-year yield higher than the 10-year yield, the yield curve has officially inverted as of 3Q2019. History has shown us there’s a high chance of a recession within the next 6-18 months. I’ll peg the probability at 70%. To parry a recession, the only thing the Fed can do is to cut rates aggressively from 2.25% down to perhaps 1.6% (where the 10-year bond yield currently hovers) or lower to entice consumers and investors to borrow and get the yield curve closer to normal. Even then, perhaps it’s too late. When short term interest rates are much higher[…]

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Average Daily Percent Move Of The Stock Market: S&P Volatility Returns

With the fear of a recession on the horizon thanks to an inverted yield curve, the stock market has begun to sell off. Due to investor psychology, the S&P 500 generally goes up like an escalator and goes down like an elevator. If we’re long-term investors, it’s a good idea to understand how much the stock market moves a day on average. When stock market volatility spikes, we’ll feel more calm and reduce our chances of doing something irrational. Below is a fantastic chart that shows the daily percentage movement of the S&P 500 over the last 10 years. Each[…]

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The Median Net Worth For The Middle Class, Mass Affluent And Top 1%

Although making a high income is nice, having a high net worth is more important. High incomes come and go. They are also taxed aggressively. In contrast, a properly managed net worth could last forever. One of the best incentives to get rich today is the record-high estate tax limit of $11.4 million per person. In other words, Americans can all pass down up to $11.4 million to our heirs tax-free. We can create a generation of adult kids who end up having zero motivation or self-pride to make something of themselves! Whoo-hoo! $11.4 million is an incredible amount to[…]

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Paying The Average Credit Card Interest Rate Will Keep You Poor Forever

The worst type of debt is consumer debt. One reason why consumer debt is so bad is due to people buying things they really don’t need: a fifth pair of designer jeans, another luxury watch, every electronic gadget imaginable, and so forth. But egregiously high credit card interest rates are the main reason why consumer debt is the worst type of debt for your finances. If you keep revolving credit card debt, you will likely stay poor forever. Let’s take a look at the current average credit card interest rate.   The Average Credit Card Interest Rate According to the[…]

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The Best City In The World To Make Money: San Francisco

If you want to get rich you need to go where the highest paying jobs are. The highest paying jobs come from the fastest growing, economically strongest companies. According to a Deutsche Bank study of over 50 cities in the world, San Francisco is the #1 city to make money. Since 2018, average salaries in San Francisco have risen by 31% and by 88% since 2014. Damn, since I live in San Francisco, I really should have kept working instead of retiring in 2012. I could have been so rich! Alas, there’s always the next life to fix my current[…]

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