Why The Baby Boomers’ Children Should Hope For Falling Stock Prices

Women aspiring to run the Boston marathon train to meet a qualifying standard. 

Before 1972, they had to do so much more. Barred from entering, they often cross-dressed for the interloping occasion with fake mustaches, capped heads, and compressed chests. Distance running was considered unsafe for females.  It wasn’t until 1984 that the first women’s marathon was held at the Olympic Games. 

Fortunately, we evolve.  Outdated ideas of female frailty now make most of us cringe. 

And one day, I hope, most people will wince when the stock market rises.

Please read the rest of the AssetBuilder article 

 





Andrew Hallam

I’m a financial columnist for Canada’s national paper, The Globe and Mail, as well as for AssetBuilder, a financial service firm based in Texas. I’m also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School (2nd Ed. Wiley 2017) and The Global Expatriate’s Guide To Investing: From Millionaire Teacher to Millionaire Expat (Wiley 2015). My mission is to educate, motivate and inspire people on basic retirement planning and best practices for investing, using evidence-based strategies. I’m happy to comment on your questions. However, please read the Terms of Use, Privacy Policy and the Comments Policy.

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10 Responses

  1. Barry says:

    And why the Baby Boomers should hope the kids are wrong ;o)

  2. Rob says:

    I have to admit that hoping for a falling market really goes against our nature. I noticed this on Garth Turners blog (www.greaterfool.ca) like you he advocates etfs and a balanced portfolio, but what is interesting is the comments. Prices drop slightly, in this case REITS and people totally freak out, reading the comments I thought it was 2008 all over again. the blood bath turned out to be nothing more than the usual volatility associated with a blue chip stock.

    • People aren’t psychologically wired to invest effectively Rob. It’s in our DNA. You might find Jason Zweig’s book Your Money and Your Brain fascinating because it gets into answering why. Here’s the link: http://amzn.to/1PBmSjl

      Young people that hope for rising markets don’t understand how the game works. There’s no logical justification for it; it’s a sad human shortcoming.

  3. Alesso says:

    I Andrew!
    I’m a big fan of your writing and investing methods.
    I’m 35 years and live in Portugal.
    I’m bullish on the long term (20 years) and confident about the rise of the market.
    So, i want to start investing in ETFs and would like your help on witch one.
    I want to invest in ETFs of US stocks index, international stocks and govermental Bonds. What do you think?
    Can you give me some light on witch one you think are the cheapest on comissions?
    Can you please help me to decide on what ETF govermental Bond should i invest in?
    Thank you very much and please continue to educate us on investing weasily.

    Cheers

    • Brunnenburg says:

      Alesso, I won’t presume to speak for Andrew, but read his book. It’s all specified there. The short answer to your questions is:

      VTI
      VEA
      BSV

      You won’t find cheaper commissions than with these Vanguard products.

      • That’s a super suggestion Brunnenburg. Thanks. Alesso, you may be interested in buying ISHG (an international government bond index) instead of BSV (an U.S. government bond index) considering that you aren’t American. But it’s up to you.

        Cheers,

        Andrew

    • Toby says:

      Great idea Brunnenburg. I own those ETFs exactly. My aim is to keep the bond portion (BSV) at approximately 40% with equal proportions of the other two (VTI and VEA). The exact percentages move around a little and I don’t get too concerned about this. They are great products with minimal expenses and most importantly they work for me. With many of the big companies in Europe and in the US taking a large portion of their income from emerging markets, this is enough emerging market exposure for me. I do not want to have explicit exposure to emerging markets in my choice of ETFs. The long-term stock market records of emerging markets is has not kept pace with developed markets. That is why I chose VEA over some of the other international ETFs from Vanguard such as VEU and VXUS. It is also why I did not add the Vanguard emerging markets ETF VWO to my portfolio

      All the best with your investing Alesso.

      Toby

  4. Alesso says:

    Brunnenburg, thank you very much for your help!
    I’ll follow your advise about reading Andrew’s book.

    Andrew, thank you (again) for your eye oppening on investing with success!

    Cheers

  5. wes says:

    Hey Andrew

    I am a teacher in Toronto canada and would like to know what you suggest for teachers in Canada who like you would love to become wealthy very fast haha! I have been teaching for 5 years in Toronto and have not currently invested any stock market or bonds. I am debt free ( with no credit cards like you mentioned in your video needing to be paid off) and renting and saving at the moment. However I will be quite honest that I don’t really know where to start for investments. All I know is that I want to start and start SOON. With so many options available it is hard to know where to start. Many of my friend in the corporate world have began investing in the stock market and I have yet to begin. I do however have what I know is a false sense of security knowing that Im paying into a pension plan with the TDSB, however I don’t want to depend on only that pension and have a goal to be financially free even without that pension and just my own investments alone. ( consider the tdsb pension to be extra ) any help you can provide would be greatly appreciated. On another note I would also love to go over seas perhaps to asia etc and get some international experience under my belt but this can be left for another post hahah

    Cheers

    Wes

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