Have You Seen the Elephant?

Americans are beginning to catch glimpses of this magnificent beast. And that’s good news for our Liberty.


What Turns a Novice Investor Into a Rich One

The world is getting a grand lesson in economics this week. Pay attention and you’ll get some clues on what the stock market may do next.


The Real Danger for Farmers Isn’t the Coronavirus

Farmers have had to adapt to survive the current crisis. But their troubles are far more serious than just overcoming a pandemic that will eventually fade.


Passive Investing’s Dirty Little Secret: It’s All Good, Until It Isn’t

The secret momentum driver elevating market indexes to all-time highs, again and again, is none-other than the “passive investing” trend. It’s going on unbeknownst to even the drivers of this momentum bus.

Investors who don’t understand how big an impact money flowing into index funds has had on the market’s performance probably have no idea what could happen if the trend stalls, or worse, reverses.

Here are the pitfalls of passive investing and how bad the fallout could be if passive investors discover the trap they’ve entered, turn active, and sell.

The almost self-perpetuating cycle of rising markets attracting passive investment capital into index products, which boosts the value of indexes as money flows into them, which attracts more sidelined money and compels investors to sell actively managed funds and buy passive index-following funds, which have been lowering their management fees since they aren’t actively managed, which attracts more investor capital into the growing universe of index funds, which keep increasing in value as sponsors and their authorized participants buy all the underlying stocks in the indexes they track when investors buy those packaged products in the open market, is, almost self-perpetuating.

But you know the saying, almost only counts in horseshoes and hand grenades.

The truth is passive investing’s virtuous positive momentum manufacturing feedback loop isn’t a guarantee.

What passive investors aren’t seeing, because they aren’t looking through or behind the mad rush into what looks like a better mouse trap, is that more money flowing into index funds increases systemic risks inherent in the investment.


Mailbag: Our Liberty Is at Risk

We’re still entirely unelectable. But facts shouldn’t stop a bad politician from at least pretending like he has a shot.


When I’m Going to Get Back Into Stocks

Mark Ford shares a few things he is considering about the current economic climate before investing in the stock market again.


What’s Right Is Hardly Ever Easy

Little by little, we’re losing sight of the importance of the freedom and power that come with controlling our own health.


Cover Your Eyes… and Buy Like Hell

We’ve got a mess on our hands. But we’ve also got a simple message for investors.


Local Food Rises to the Occasion

As panicked shoppers empty grocery store shelves day after day, week after week… there’s good news coming out of this crisis.


Manward’s Summer Reading List

Books help us become better, smarter and happier. And there’s no better time than now to debut our summer reading list.


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