What I have been reading - 3rd February 2020

Here are some of the interesting things I came across this week:

Putting the next market downturn into perspective:  The last major downturn was at the end of 2018.  As sure as I am that the sun will come up tomorrow, I know the next downturn is coming.  I just don't know when.  Visualising what it will look like is important.  Ben Carlson shows us in this blog post.  "A bear market of 20% would only take us back to levels seen a year ago."

Why is shorting stocks so difficult?:  When you buy a stock you are said to be 'long' that stock.  When you 'short' a stock, you sell a stock you don't own in the hope that the share price will go down and you can buy it back at a lower price, thereby making a profit.  It's a 'bearish' bet on a stock.  And it's really hard.  This post by Cullen Roche explains why.  If you haven't been following the wild ride that has been Tesla stock this year, A LOT of hedge fund managers have lost A LOT of money shorting this stock, only to see the share price go through the roof.
 

Why invest?  A 22-year-old's tough questions about capitalism:  This is an excellent short article from Jason Zweig at the WSJ.  The world is bright, and getting brighter for most people, most of the time.  "Apocalyptic thinking has always been wrong as a forecast, and it will continue to be wrong."

11 reasons not to become famous:  I am a Tim Ferriss fan.  Here he shares what lessons he has learned about fame in the last decade or so.  Fascinating.

Seneca on the shortness of time:  Time is our ultimate currency.  One of the best uses of your money is to buy back your time.  If you can afford it, pay someone to do the stuff you don't enjoy doing.

FINALLY:
Splendid isolation: how I stopped time by sitting in a forest for 24 hours:  I am sure this won't appeal to everyone, but I found this article captivating.  

ENJOY!

Georgie

georgie@libertywealth.ky