May 17

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Investing in Tulips?

I only have to drop kids off at school for two more weeks (for the rest of my life!). Next school year, all my kids will be going to the same campus, and my oldest can drive them. I won't miss school traffic, that's for sure.

It's spring, and nature is buzzing with life. This week, I saw a giant box turtle in my driveway, a bunch of deer, and an enormous gator lumbering across the street! I'm going to keep my fifteen-pound fluff ball of a dog close by. And since blueberries are now in season, I made two colossal blueberry pies. They were gone the same day.

Lastly, Jesse, my youngest, is grounded. He was caught lying. For a little while, he will not be able to play video games or use his iPad. It's okay, though. We found a picture (above) that reminded us how fast this goes. 


Do you need some trivia facts to impress your friends? Do you want to gasp out in amazement? Read on.

Fact: In the past 50 years, the stock market was only down ten out of fifty years.

Fact: The stock market, as a whole, has averaged a 10% return for 200 years.

Fact: The United States makes up 58.4% of the world stock market. China is next at 10%, Japan at 6.3%, the U.K. at 4.1%, and Russia at 0.5%.

Fact: A 5-10% market decline generally requires a month or two to recover.

Fact: The wealthiest 10% of Americans own 84% of the stock market.

Fact: $1000 invested in 1900 would be worth $19 million today.

Fact: If the stock market ever went to zero, we would live in a post-apocalyptic wasteland.

Fact: Most day traders garner the lowest returns. Between 1992 and 2006, 80% of active traders lost money, and only 1% were profitable.

Fact: The first recorded speculative bubble, the Tulip Mania, occurred in the Netherlands in the early 17th century when prices for tulip bulbs reached extraordinarily high levels before dramatically collapsing.

Fact: Hedge funds manage approximately $3 trillion in assets globally, but only about one-third outperform the average market returns. I know they sound fancy, but they are mostly smoke and mirrors.

Fact: Insider trading is illegal in most markets, but "legal insider trading" happens when corporate insiders—executives, directors, and employees—buy or sell stock in their own companies, which is sometimes allowed by the SEC. (I don't know how I feel about that.)

Fact: In 2021, the number of individuals trading stocks in the U.S. increased by 50% compared to the previous year due to the accessibility of trading apps and platforms.

Fact: The COVID-19 market crash saw the S&P 500 drop by over 30% in March 2020, but it rebounded quickly, recovering all its losses in five months- one of the fastest in history.

Fact: The longest bull market (strong market) in modern history lasted nearly 11 years, from March 2009 to February 2020. After 2008, many were spooked from investing, but they really missed out. Strong rebounds after market corrections are expected.

The concept of 'Bear' and 'Bull' markets originates from how each animal attacks its opponents; a bear swipes downward while a bull thrusts upwards.

Fact: More than 60% of millennials are inclined to invest in cryptocurrency, viewing it as a technology investment rather than purely financial speculation. As of this writing, I do not suggest betting your retirement on Bitcoin.

Be Blessed,

Dave

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