Is The Stock Market Overpriced? Part IV

We've gone from Ivory Tower to Wall Street and back to Ivory Tower in this discussion about trying to divine the proper valuation for the stock market.  However, the vast majority of investors (if not an outright majority of wealth) come in a far more down to earth form - the individual investor, or , if you prefer, Main Street. This article is … [Read more...]

Is the Stock Market Overpriced? Part II

On Monday we brought you our brief examination (anything without a calculator involved is 'brief' here on DQYDJ) of recent Nobel Prize winner Robert Shiller's cyclically adjusted P/E ratio and what it meant for today's pricing in the S&P 500. For those of you who just found our site, you might not be familiar with Shiller's work.  That's … [Read more...]

Is the Stock Market Overpriced? Part I

If you've read Don't Quit Your Day Job... for a while, you've likely noticed the tension between us three writers over whether or not markets are rational and whether or not market irrationality is worth attempting to exploit due to transaction costs and risks. See Part I – Robert Shiller See Part II – Warren Buffett See Part III – James … [Read more...]

Keeping Up with the Joneses: Risk Tolerance

Much has been made on the blogosphere and even on our own website about keeping up with the Joneses, the desire to maintain expenses similar to your neighbors. They bought a new Infiniti, why shouldn't I? A similar, yet different, concept is the idea of lifestyle creep, the slow build-up of "necessary" expenses as your income increases. I myself … [Read more...]

Why Does Risk Aversion Differ?

One of my coworkers very recently moved to this state from across the country. In doing so, he had to pick up his family, sell his house and buy a new one all while working remotely, traveling back and forth and transitioning to a new area (and climate). We got to talking about real estate and what he was looking for when he bought his house and … [Read more...]

Part 4 of Tales of a Mortgage: Thank You for Selling!

Last October, I mentioned that I had finally hit a net worth of zero, celebrating the occasion of being officially worthless. At that point I mentioned that my next step was to buy a house. I can now say that I finally did get down and buy a house, closing a few months ago on June 13th. I started looking in November just to see what was out there … [Read more...]

Part 2 of Tales of a Mortgage: Realtors Bite!

Last October, I mentioned that I had finally hit a net worth of zero, celebrating the occasion of being officially worthless. At that point I mentioned that my next step was to buy a house. I can now say that I finally did get down and buy a house, closing a few months ago on June 13th. I started looking in November just to see what was out there … [Read more...]

How Did Your Stock Investments Go Last Year?

You know how on Facebook most people will only post positive messages and status updates, and tag themselves only in happy photos?  There are even Facebook groups dedicated to posting only positive things, in order to keep up the facade of a sterilized perfect life.  We've all got that one friend who tosses up the passive aggressive statuses, or … [Read more...]

Predicting S&P 500 Closing Prices – May, 2013

If you've been around a while... you know all about this series. Approximately one entry per month where we look at the way puts and calls are trading on the ETF SPY (a S&P 500 ETF), and use those to divine the future based on the disparity between those prices and where the stock is trading today.  Today's entry is based on data as of the … [Read more...]

May 8, 2013: The Actual All-Time Closing High in the S&P 500

Today was the all time high closing price for the dividend reinvested, inflation adjusted S&P 500. I know that much of the financial world has been rambling about the continual new highs in the stock market.  You haven't been, though... you read my post earlier this year (or read my Tweet this morning) where I originally pointed out the … [Read more...]