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S&P 500 Returns by Components 1900-2020: Earnings Growth + Dividends + P/E Changes

In the previous post How Much of Historical Stock Returns Is Due To P/E Ratio Expansion?, we saw how the S&P 500 historical average total return could be broken down into separate components of earnings growth, dividends, P/E multiple changes, and … [Read the rest]

Weekend Listening: NPR Planet Money Summer School Investing Edition

In 2020, the NPR Planet Money podcast did a series called Summer School that focused on economics concepts. You can still listen to those, but the 2021 Summer School series is about investing. Hardcore personal finance geeks might come away … [Read the rest]

Myth: It Took 25 Years to Recover From 1929 Stock Market Crash

Sometimes, it pays to scratch a little beneath the surface. In 2012, well-known behavioral scientist Dan Ariely published a paper that found that when people signed an honesty declaration at the beginning of a form, rather than the end, they were … [Read the rest]

Chewy National Dog Day Sales: Spend $100, Get $30 Gift Card + 10% Off All Gift Cards

Online pet store Chewy.com is offering a variety of National Dog Day promotions: Spend $100, Get a $30 gift card on select Dog products. Decent selection of a variety of dog products. Look to see if your normal purchases are included. 10% off … [Read the rest]

Best Visual Explanation of the Convexity of Long-Term Bonds

Long-term US Treasury bonds are often considered a good asset class to own due to their historically low correlation with stocks. When stocks go down, long-term bonds tend to go up (and vice versa). While the 30-year is not specifically included … [Read the rest]

How Much of Historical Stock Returns Is Due To P/E Ratio Expansion?

According to Multpl.com, the P/E ratio of the S&P 500 is now 35, and the dividend yield is only 1.3%. The all-time low dividend yield was 1.11% back in August 2020. Even if you consider stock buybacks, the earnings yield is less than 3%! That … [Read the rest]

Free Grubhub+ Membership For Rest of 2021 (Targeted)

Grubhub is offering free Grubhub+ membership for the rest of 2021 (usually $9.99 a month) - and Seamless+ - for targeted customers, although many others will still get 30 days of free Grubhub+ membership. In addition, this offer does not require a … [Read the rest]

Real-World Smoothing Effects of Regular Investments (Dollar Cost Averaging)

Most people must rely on the power of smaller, regular investments from work income to build up their retirement nest egg. In the latest Sound Investing email, Paul Merriman shared a new Lifetime Investment Calculator that helps you see how these … [Read the rest]

Richer, Wiser, Happier: Notes From 40+ Super Investors NOT Named Warren Buffett

It was very telling that the first chapter of Richer, Wiser, Happier: How the World's Greatest Investors Win in Markets and Life by William Green was a profile of Mohnish Pabrai. In other words, not Warren Buffett! If you aren't a student of value … [Read the rest]

Turning Small Deals into a $100,000 Nest Egg

There is a story circulating about MIT students offered $100 in free Bitcoin back in 2014. A few quickly spent it on dinner at a local sushi restaurant. Some kept it all, now worth about $14,000. Some agreed to help fellow students set up a … [Read the rest]

PFS Buyers Club: New US Mint Coin Deal on 8/12 ($60+ Net Profit, August 2021 #3)

Another new coin deal on Thursday, August 12th, 2021. PFS Buyers Club has another coin deal on a limited-edition 2021 American Eagle Silver Coin. They will pay you a guaranteed fixed profit of $61 plus any credit card rewards. See details … [Read the rest]

Best Interest Rates on Cash – August 2021 Update

Here's my monthly roundup of the best interest rates on cash as of August 2021, roughly sorted from shortest to longest maturities. I look for lesser-known opportunities to earn 3% APY and higher while still keeping your principal FDIC-insured or … [Read the rest]