Suzy Q

“If you want a reality check, take a look at the study that’s regularly put out by S&P Dow Jones Indices, part of McGraw Hill Financial. The study is known as the SPIVA Scorecard, short for Standard & Poor’s Indices Versus Active. It compares actively managed funds to appropriate benchmark indexes. Over a 10-year period, typically 20 percent or less of actively managed funds outperform their category’s benchmark index.”
― Jonathan Clements, How to Think About Money

“In a path-breaking work on the nature of bubbles, Greenwood, Shleifer and You (‘Bubbles for Fama’) share some fascinating findings. Among the most compelling is that only a slight majority of bubbles actually burst.”
― Daniel Crosby, The Behavioral Investor

“WHEN YOU INVEST, your mind has a mind of its own. At the very moment when you are most convinced of your own rationality, you may be feeling rather than thinking your way toward a decision.”
― Jason Zweig, The Little Book of Safe Money: How to Conquer Killer Markets, Con Artists, and Yourself

“Revisiting Batnick’s periods of low real returns using Shiller CAPE, we also observe that long periods of poor performance often begin with overvaluation that is worked off over time. The Shiller CAPE levels of the broad market on January 1 of each the years cited above were as follows: 1929 – 27.06 1944 – 11.05 1965 – 23.27 2000 – 43.77 Today – 28.80 Mean – 16.67”
― Daniel Crosby, The Behavioral Investor