Here are 8 fascinating things I read this week.
Angelo Mozilo, the former CEO of Countrywide Financial, one of
the worst culprits in the subprime mortgage bubble,
made a prescient call
The S&P 500 went up 30% last year. Only 7% of Americans
know this fact:
Google is building an underwater fiber cable system that is
literally being eaten by sharks:
Stocks at all-time highs
is pretty common
, writes Ben Carlson:
I never tire of these charts
poorly the average investor performs:
Warren Buffett is
building up cash
while the average investor is cutting it:
Cash at Berkshire Hathaway stood at just over US $55 billion
at the end of June, a record high and 21/2 times the level
Buffett had said in the past he liked to keep on tap to meet
extraordinary claims at his insurance businesses. It was also
up more than 50 percent year on year.
Buffett's green pile was in sharp contrast to individual
investors, who had cut cash in portfolios to 15.8 per cent, a
14-year low, the July asset allocation survey from the American
Association of Individual Investors showed.
The world is
getting older very quickly:
By 2020, 13 countries will be "super-aged" -- with more than
20% of the population over 65 -- according to a report by
Moody's Investor Service.
That number will rise to 34 nations by 2030. Only three
qualify now: Germany, Italy and Japan.
gives a good take
on stock valuations:
The point is, if valuations and market perceptions are as
dynamic as I believe then the history of something like CAPE
really doesn't tell us much at all. After all, "value" is
really all in the eye of the beholder. If investors are
willing to pay more for stocks today than they were in 1950
then maybe a CAPE of 15 has no bearing on what a CAPE of 25
means. That is, stocks could simply be perceived
differently than they were in the 1950s. Perceptions
change. And there's no reason why stocks can't be
perceived to be inexpensive at a CAPE of 25 just because they
once sold at a CAPE of 15. In other words, what if a CAPE
of 35 is the new "expensive"? Now, I don't know if
that's true, but in the process of managing one's risk I think
you have to consider that possibility.
Have a good weekend.
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8 Fascinating Reads
originally appeared on Fool.com.
Contact Morgan Housel at firstname.lastname@example.org. The Motley Fool
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