I hope you have had a great week so far.
Here is another addition of Finance Friday.
Quote I am pondering:
Give a man a choice of gold or wisdom, he will most likely go for gold. The next day, he begins to wail because he has no more gold. – George S. Clawson, The Richest Man in Babylon
I like this quote because it reminds me of the old axiom: give a man a fish, feed him for a day; teach a man to fish, feed him for a lifetime.
The knowledge we gain is enduring and is what really leads us to success. Money is only temporary – especially if it is given to us instead of earned.
For this reason, we should always value knowledge above short-term gain.
Stock Market Update:
Another week of losses for the stock market.
We are seeing sustained weakness that is leading most indicators to believe we are in correction territory.
Oil has been plummeting this week, and is just starting to show signs of leveling.
While this means less expensive gas, it also brings with it concerns for the stock market. If oil continues to fall, we will likely see the stock market follow suit.
Interest rates have benefited from this weakness in the market. The 10-year treasury has stabilized and even dropped slightly. This is good news for mortgage rates.
When making financial decisions think 5 years down the road.
Taking a long-term approach helps us better analyze if our financial decisions are good ones. If the short-term decision will negatively affect where you want to be in the future, it is likely an unwise decision.
This will help bring balance to our wants and needs.
Book I am Reading:
I am still reading: The 12 Rules for Life, by Jordan Peterson.
One section I really like is when he talks about sleeping. He outlines how hard it was to treat (he is a clinical psychologist) anxiety and depressions in individuals who are not getting up at the same time each day.
He said when you get up is even more important than when you go to bed. With clients he worked with who had depression or anxiety, fixing this component was necessary before the other issues could be treated.
I really enjoy a good morning schedule. Not only does it help with productivity, it also helps keep a clear mind during the day.
During the Great Depression, the board game Monopoly became immensely popular. Individuals would use it as an escape from reality – as they could pretend they were rich. Unemployment during the Great Depression was at 25%. This is a hard number to fathom as it is below 4% today.
Most families didn’t have the money to travel, so jumping on a railroad car became increasingly popular. They estimate that some 50,000 were injured or killed because of this popular form of traveling.
I will remember this next time my kids complain about a long drive – at least they are not having to jump on and off a train to get there!
Thanks for reading, and I hope you all have a great weekend!