The Cobra Effect

The Law of Unintended Consequences and the Risk of Owning Bonds Photo: Pixabay When the British occupied India under colonial rule in the mid to late nineteenth century, they had a problem — Cobras. These venomous snakes were numerous in India and, unsurprisingly, the British were not fond of them. As a result, the British government set up…

Falling Fast and Rising Slow

On the Nature of Equity Price Declines and Recoveries Photo: Pixabay This week’s post concerns something that is well known to many investors: stock prices fall quickly and recover slowly. However, my real question is: how long, on average, does it take for the decline and subsequent recovery to occur? To begin, let’s consider the…

When There is Blood in the Streets

Why Following Advice During a Financial Panic is Not as Easy as it Sounds Photo: Wikimedia Commons There is a famous quote by the 18th century banker Baron Rothschild: The time to buy is when there’s blood in the streets. Rothschild made a lot of money in the panic that followed the Battle of Waterloo using…

Cooperation in the Age of Anger

Why We Need Understanding And Support For Others Now More Than Ever Photo: Pixabay I have finally cracked. After writing for Of Dollars And Data for 33 weeks without discussing politics in the slightest, I have had enough. I really thought I could keep this website strictly to personal finance/investing, but I don’t have the will…

Retiring Off Dividends: What Are the Odds?

A Simulation of Retirement Dividend Income Using Varying Savings Rates and Time Horizons Photo: Pixabay This is a guest contribution by Nick McCullum from Sure Dividend. Sure Dividend uses The 8 Rules of Dividend Investing to systematically identify high-quality dividend stocks suitable for long-term investment. Investing in the stock market has historically been one of the…

Turn Off, Tune Out, Get Rich

Why Ignoring Financial Noise is Crucial For Investment Success Photo: Flickr This week I want to talk about the amount of noise that exists in the financial media and how you would be far better off as an investor if you ignored it. The idea here is that by consuming financial media you are going…

Ignore the Price, Remember the Dividends

Why Dividends Are The Key To Building Wealth Photo: Pixabay This week’s post can be found at SureDividend.com as a guest post: http://www.suredividend.com/ignore-price-remember-dividends/ ➤ You can follow Of Dollars And Data via Twitter, Instagram, or my weekly newsletter (Sign up here!) This is post 32. Any code I have related to this post can be found here…

Against the Gods

How to Think About Risk in Your Personal Finances Photo: Pixabay This week I want to discuss a book I read recently called Against the Gods: The Remarkable Story of Risk by Peter L. Bernstein. Besides Bernstein’s incredible writing style and memorable anecdotes, the book fundamentally changed how I viewed risk with regards to my personal…

Wanna Get Rich? Think Fractally

On the Fractal Nature of Compound Interest Photo: The Sierpinski Triangle This week I want to talk about compound interest, fractals, and how you can use them to make yourself rich. Before we get into the compound interest part of things, let’s first take a dive into fractals. A fractal is a geometric object that displays…

E Pluribus Unum, Among Many…One

On the American Stock Market and its Future Photo: Pixabay Given it is July 4th, I thought it would only be fitting to talk about the one and only United States of America. In particular, I want to talk about how the U.S. became the dominant stock market of the 20th century and why the 21st…