Reading List for February 28-March 1
Given the huge and rapid correction in the stock market this week, we start this week’s list with the “Investing” articles:
- This is the fastest market “correction” in history, and we aren’t done yet. (Yahoo Finance)
- "Is The Stock Market Going to Crash?" The Irrelevant Investor takes a deep dive for those of you that like numbers and stats and graphs to address this question.
- WSJ-(subscription) columnist Jason Zweig reports on survey results from individual Vanguard investors, and explains why professionals must sell in a down market, but individuals don’t.
“….the Vanguard survey finds, these investors don’t tend to buy more stocks when they become a little more optimistic or to sell when they turn a bit pessimistic. Unlike professionals, they often change their opinions without feeling obligated to act on them."
- Ron Lieber of the NYT similarly suggests individuals “take a breath” and not overreact to this virus driven market drop.
- GFLEC issued a new study based on the 2018 National Financial Capability Study. Sadly, only 16% of millennials qualify as ‘financially literate.’ (Yahoo Finance)
- “The Colorado Department of Education came up with a menu of 11 options, with school districts required to pick at least one.” The Boulder Daily Camera looks at how two different school districts approach the graduation requirement.
- CNBC lists eight books on personal finance and increasing your net worth. How many have you read/used?
Car Loans (in case you missed this)
- We noticed lots of social media (Finlit Fanatics) attention this past week to this WSJ (subscription) article which shockingly reports that car buyers are being told to walk away from their car loans when trading up. The dealers aren’t feeling the pain, but the lenders and borrowers are. (Incentives drive behavior—no news there!)
Paying for College
- According to the CFPB, Americans over 60 are the fastest growing group of people with student loan debt—most of it taken on behalf of others. (New York Times) It is impacting their retirement plans.
- number with debt has increased 400% since 2005
- average loan balance has doubled since 2012
- only 27% paying loans for themselves
- Career Karma takes a closer look at income share agreements in its detailed report. Pretty eye-opening examination of who is playing in this space.
- MarketWatch outlines how women can do a better job preparing for retirement than they have done historically. (This article starts with the same three questions used in the National Financial Capability Study mentioned first.)
Our changing world
- Curbed informs us about how those half-empty retail malls are being repurposed (think entertainment).
- Before you pick up your phone to order food to be delivered, read this! When you realize how much more you will be paying for it, you may think twice. (NYT)
- Walmart getting into providing affordable walk-in health care (competing with CVS Minute Clinic). (Bloomberg Businessweek-subscription)
Reading List Chart of the Week: (WaPo)
"A new report published by the Manhattan Institute, a conservative think tank, offers a clear explanation for the disconnect between the economy described by economists and the one experienced by regular people. It all boils down to the startling shift illustrated in the chart below." My only question here is whether or not median male income is a good representation of household income for a family of four. However, the relative change over time is still sends a strong message.
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