What Is The Most Common Way To Becoming A Millionaire?

25 August 2010

So we’re going to continue in our review of some of the quotes and lessons from Dr. Thomas J. Stanley’s recent book “Stop Acting Rich and Start Living Like a Real Millionaire.”  On Page 12, Dr. Stanley says that “the buying behaviors of the glittering rich, especially brand selection patterns, are completely opposite to those of the millionaires who may never in their lives have had an annual income of $100,000 or more…They invest regularly and wisely.”  And then later on Page 12, Dr. Stanley goes on to write, “Bottom line, it is far more attainable to become a millionaire through hard work and saving than it is likely to become a celebrity millionaire, win the lottery, or inherit from a mysterious rich aunt.”  And so, as we look at what Dr. Stanley is writing about here, and trying to communicate to people, we want to first of all look at it and say okay, is what Dr. Stanley is writing here true? That’s question number one. 

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How Do Investor Emotions Affect Their Investment Performance?

19 August 2010

Human emotions affect many investment decisions, all too often. AMG/Lipper had disclosed one of the largest weekly net outflows, in late July, from the equity mutual funds and equity ETF’s on record. $11.6 billion was withdrawn, implying a huge rally. The size of rallies after net withdrawals of $4.0 billion or more tends to be commensurate with the size of the net outflows. Then in the first week of August AMG/Lipper showed inflows of $8 billion.

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