I’m so giddy! No, not because it’s Thursday, silly. Want to know why? Because I can FINALLY use this picture I had so masterfully crafted over a year ago (yes, I am highly artistic as you can clearly see). The problem with this image was that when I created it, the market was red hot. Then it kept on getting hotter. I didn’t feel like I could use this and write until the markets started tumbling. And tumbling it has in the past week. The timing couldn’t be more perfect. So come join me for a pleasant introduction to financial pornography.
The future is always uncertain. However, the paradox is that you pay a heavy premium to participate in the game when the market forecast is bright and sunny. And when the forecast is dreary and depressive, you can buy dollars for cents. The strange thing is that nothing has changed in either scenario. Fundamentally, the future is always uncertain. That to me, is the uncertainty principe.
Blah blah blah, people are always going on about the importance of investing your money. If you weren’t given visual aids when this lecture occurred, you are forgiven for getting a glazed look over your face while you pretended to listen. I’ll keep this one sweet and short: IT’S SO IMPORTANT TO INVEST YOUR MONEY. Here is why in 2 graphs.
I’ve been waiting an entire year to review my sample index fund holdings. I started learning about investing in the stock market around the same time I started my student loan repayment. After consultation with those wiser than I, I decided to not simultaneously invest and pay off debt. Rather I chose to focus completely on paying off my student loans. But, I also wanted to put into practice all I had learned about index funds and the stock market. So I bought a small, sample portfolio and wanted to see where it was a year later. Here are the results.
I’m a bit of a data geek. I actually enjoy creating graphs in excel. Yeah, weird huh? Anyways, here are 7 graphs that might make you think (or maybe make you fall asleep?).