March 29, 2024

Bucks: The Big Lesson of 2012: Earn Your Returns

Carl Richards is a financial planner in Park City, Utah, and is the director of investor education at the BAM Alliance. His book, “The Behavior Gap,” was published last year. His sketches are archived on the Bucks blog.

This week, we begin a new monthly video feature called “Ask the Sketch Guy.” With each post, Mr. Richards will take one question from a Bucks reader or people he has encountered in his travels, create a custom sketch to answer it and narrate on video as he wields his trusty Sharpie. If he picks your question, he’ll also send you a signed sketch.

If you’d like to ask him a question, please post it in the comments field of this post. As for this kickoff sketch, Mr. Richards chose to answer a question he’d been asking himself in his head: How could he better articulate the ever-present disconnect between our feelings about how our investments will do and the reality of the actual returns?

Article source: http://bucks.blogs.nytimes.com/2013/01/28/the-big-lesson-of-2012-earn-your-returns/?partner=rss&emc=rss

Bucks Blog: All Your Feelings About the Stock Market

Carl Richards

If you’re like me, you couldn’t help but feel a range of emotions this week as the stock market bumped up and down — even if you’re a long-term investor who ought to know better.

The severity of the up-down-up-down pattern really was far out of the ordinary, so it’s no surprise that even those of us who are supposed to preach calm for a living find ourselves a wee bit unnerved.

These reactions shouldn’t be surprising, given the reminder in the classic Carl Richards sketch that illustrates this post. Still, it’s worth putting a name to these feelings and confronting them, which I do with a handful of the most powerful ones in this week’s Your Money column.

Now it’s your turn. You don’t have to put your name on the comments here, so feel free to use yours as an online confession of your most visceral reaction to what went on this week. Here’s hoping you found a good way to contain your rage, disgust, greed and generalized discombobulation.

Article source: http://feeds.nytimes.com/click.phdo?i=83d5612dc2d0c8751d2995bf8e9f52ac