In case you haven’t been paying attention, I though you might like to know that the S&P 500 closed at a record high on Thursday. And again on Friday.
Not surprisingly, Nobel Prize winner Robert Shiller says that stocks are currently “highly priced” and that he worries they “might correct.”
That being said, his cyclically adjusted PE ratio (currently a shade below 24) is lower than the pre-collapse peak of 27.5 in May 2007, and way lower than the all-time high of 44.2 in December of 1999.
He also says that investors shouldn’t be alarmed, and that one could — and probably should — invest in stocks “in a diversified portfolio.” Sound advice.
And now… Here are some articles that caught my eye this past week:
- Social Security’s Actuarial Neutrality — An excellent point. While Social Security may be actuarially neutral on a program-wide level, you need to think carefully about when to claim your own benefits.
- Is It Time to Ignore the Rich? — Instead of trying to learn lessons from the wealthy, focus on learning from those who are good stewards.
- Lending Club Looks to Upend Banking Industry — While it’s premature to say that peer lending will be the death knell for banks, it’s (imho) here to stay.
- Buy a Share of Athlete Earnings — Interesting. There’s now a platform for pro athletes to sell shares in their future earnings.
- How to Work Out Your Own Financial Independence Plan — A very nice rundown of things to consider when planning for financial freedom.
- Bogle Misses the Boat on Rebalancing — I’ve said it before and I’ll say it again… You rebalance to maintain your desired risk profile.
That’s it. I hope you had a great weekend.