What I have been reading - 25th May 2020

Here’s what I read last week that I think you should too:

"No, I'm Better":  A war of words on Twitter shows that investment performance is, unfortunately, somewhat in the eye of the beholder.

The three sides of risk:  This is a deeply moving piece written by one of my favourites, Morgan Housel.  "Never, not once, did we think we'd pay the ultimate price." 
 

When failure is an option: a trading strategy soaks investors:  A "Yield Enhancement Strategy" (YES) was sold by UBS as a conservative strategy promising consistent returns.  A bear market blew that up and it turned out to have huge downside risk.  There is always a lesson in stories like these (which live on and on).  

What we leave behind:  Scott Galloway explores how COVID presents society, and each of us, with the opportunity to design a better life with...less.  But what do we leave behind?

The best source of investment income:  A great piece by Ben Carlson showing how much less volatile dividends are than stock prices.  As I explained here, dividend payouts are the most easily understood but most routinely overlooked part of equity investing.  

It's a perfect storm of stupid in the stock market right now:  Apparently 780,000 bored Americans have opened brokerage accounts over the past few months.  This author notes "I could not have dreamt of a more perfect condition for separating investors from their money if I tried." 

FINALLY:
Hurricanes are becoming more powerful, new data suggests: This is not good news for the Cayman Islands.

ENJOY!

Georgie

georgie@libertywealth.ky