Most investors like their shares to go up. But if you’re young or you’re buying for income, it’s better for them to go down.
Cheaper shares now mean higher profits later, or getting more dividend income for your money. You might feel bad about losing [1] in the short-term, but in the long-term bear markets are good [2] for your health.
For these reasons I genuinely shrugged off the FTSE passing briefly below 5,000 yesterday. If you want to read a blog screaming that the world is ending, I’m afraid you’ve come to the wrong place. Our chips have got cheaper!
Besides, this was a huge week in science that humbles our little efforts to get rich [3].
First wonder of the week: Scientists proved in a lab that the universe isn’t impossible. Yes, this is somewhat like when they proved bumblebees couldn’t fly, but I was still relieved they found more matter than anti-matter [4]:
Researchers working on the DZero experiment observed collisions of protons and anti-protons in Fermilab’s Tevatron particle accelerator.
They found that these collisions produced pairs of matter particles slightly more often than they yielded anti-matter particles.
“Many of us felt goose bumps when we saw the result,” said Stefan Soldner-Rembold, one of the spokespeople for DZero.
“We knew we were seeing something beyond what we have seen before and beyond what current theories can explain.”
I sit easier in my chair knowing it’s not an impossibility that exists on borrowed time!
Second wonder of the week: Even as we apes try to understand the universe, US scientist Craig Venter is playing God and creating life [5] (of sorts):
“This is the first synthetic cell that’s been made,” said genome pioneer Craig Venter, who led the research. “This is the first self-replicating species that we have had on the planet whose parent is a computer.”
Venter believes he can create new lifeforms to eat carbon dioxide or grow fuel. Worrywarts think he’ll give birth to a rampant goo that will destroy the environment [6].
Kids just want to know where they can get hold of this stuff.
On the personal finance blogs this week
- Money matters, your opinion doesn’t – Psy-Fi blog [7]
- Is there value to value investing? – Simolean Sense [8]
- Good news on UK public borrowing – David Smith [9]
- US stocks converge on ‘six bear average’ – Money Moves Markets [10]
- Why aren’t annuities more popular? – Morningstar [11] (by Mike [12])
- Where would you save pennies if you had to? – Simple in France [13]
- Building asset value – UK Value Investor’s Diary [14]
- First steps in value investing – iii blog [15]
- 12 very doable small business ideas [Updated] – Wealth Pilgrim [16]
- An extra seven hours a week – Financial Samurai [17]
- The Wall Street reform bill – Consumerism Commentary [18]
- Your expensive luxury car doesn’t impress me – Len Penzo [19]
- Happiness is not for sale – Budgets are Sexy [20] (by Brad [21])
Good articles from the financial press
- Speedy new traders make waves – New York Times / Yahoo [22]
- Fraudsters ‘suckers list’ revealed by regulator – BBC [23]
- Europe: That sinking feeling – The Economist [24]
- Why the English are different [free market related!] – The Economist [25]
- Investing in farmland – FT [26]
- Home Information Packs have been suspended – FT [27]
- Best buy bonds for savers – Independent [28]
- Fidelity calls for CGT rethink – Telegraph [29]
- Mortgage lending at lowest level in a decade – Telegraph [30]
- Cameron vows to cut taxes – someday – Telegraph [31]
- Cash machine inventor dies – BBC [32]
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