Top Articles
The Psychology of Money (Collaborative Fund): If you want to pick just one thing in this entire email, read this. All of Morgan Housel’s work is worth your time, but this look at “flaws, biases, and causes of bad behavior” is easily his best piece to date.
Prediction vs. Preparation (A Wealth of Common Sense): No one knows exactly what is going to happen in the market – making specific predictions is a fool’s errand. This is another way of approaching the principles I lay out in my thoughts below. [Go deeper: The Prediction Polka.]
Shaping a Life of Money and Meaning (Bps & Pieces): Brian Portnoy’s new book outlines great principles to guide your financial life. Two keys among them: 1) focus on continuous planning, not just the one-time plan; and 2) think of wealth not as a quantity, but rather as “funded contentment”.
Negative Space: Why It Always Feels Like the Top (Mullooly): As the market goes up, the rising line on the chart has an ever-increasing blank space below it. The higher the market goes, the more that space can look like a gaping crater waiting to swallow up all the gains. Remember this when the market recovers, and don’t fall for it.
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