Bear Market Playbook

Although we are not technically in a bear market (the S&P 500 Index has not declined 20%) it absolutely feels like one. The tech-heavy NASDAQ index is 26% off its highs, and so are small-cap stocks. Many of the darling stocks of the latest growth rally have been decimated. These are some of the most…

Flush It Out

It’s brutal out there. We had two very strong down days on Friday and Monday, with no signs of a relief bounce today.  The S&P 500 Index closed down another 3.2% on Monday, now down over 16% year-to-date. Everyone expects we will enter official bear market territory, with the averages down 20% or more. CNBC…

Don’t Panic Sell

The markets have been ugly for the past few days. The Nasdaq was down 5% yesterday and is now down over 21% year-to-date. There’s nowhere to hide either. Bonds are having their worst start to a year (-10.79%) on record. Inflation is running at a 40-year high, and the Fed is aggressively tightening monetary policy….

I Need Help

I was the 19th employee of Ritholtz Wealth Management when I joined the firm four years ago next month. I knew I was getting on a rocket ship, but I underestimated what escape velocity would feel like. In my first year, we crossed $1 billion in assets under management, a record-breaking accomplishment for a start-up…

Start Date Randomness

I’ve been the primary advisor to clients for 12 years, and my career in wealth management is approaching two decades. Each client hired me on a different date over those 12 years, and since I joined RWM four years ago, this has been at a pace of about one new client every month. As a…

Get Even-itis

Investors struggle with many behavioral biases, but Loss Aversion is perhaps the bias that poses the greatest challenge. Loss aversion simply means that losses hurt twice as bad as a gain of equal value. This is a concept was first quantified by Amos Tversky and Daniel Kahneman in their pivotal 1979 paper titled Prospect Theory….

What to do with an IPO windfall

I joined my colleague Ben Carlson on his weekly YouTube show, Portfolio Rescue, this morning to answer questions from viewers. I answered a question about what to do with a windfall from stock compensation in a company that goes public. In my experience, stock-based compensation can be both a blessing and a curse. That’s because…

This Week in Women

Senate passes bill ending forced arbitration in sexual misconduct cases The measure passed unanimously by a voice vote after garnering overwhelming bipartisan support in the House earlier this week. The bill now heads to President Joe Biden’s desk to be signed into law. Under the legislation, employers would be prohibited from forcing workers to settle sexual…

The Informational Interview

The afternoon sunshine weaves through a slit in the thick curtains, casting white lines on the dark brick floor. The only sound in this cavernous office is the whoosh of cars driving by on the highway about 300 yards away. I am nervous to meet the bank President, my father’s golfing buddy, for an informational…

Is This The End of The FAANGS?

Stocks are off to a rocky start this year. For the first time in a long time, growth stocks are missing their earnings expectations, and their stock prices are falling off a cliff. I had almost forgotten what it’s like to see a company miss by a penny and drop like a rock. Even though…