Adam M. Grossman

I FEEL LIKE A BROKEN record when I talk about the benefits of index funds. Indeed, index fund advocates—myself included—sometimes get a little preachy, so I won’t bore you with the same facts I’ve cited before.
Instead, I want to focus on a more subtle reason to index, which has been highlighted by the stock market’s behavior over the past year. You’ve probably heard the expression “a rising tide lifts all boats.” When it comes to the stock market,

IN THE INVESTMENT world, there’s a lot of nonsense and a lot of hot air. But a few people are like the Shakespeare of personal finance: There’s wisdom in virtually every word. Warren Buffett is probably the dean of this group. But another leading light is Peter Lynch, who in the 1970s and ’80s stewarded Fidelity Investments’ Magellan Fund with enormous success.
Lynch is largely retired today, but his plainspoken advice is as valuable as ever.

IN RECENT WEEKS, the world met WeWork founder Adam Neumann. The meeting did not go well. WeWork had been preparing an initial public offering for its stock and things seemed on track. But the IPO was shelved and Neumann was out of a job. 
The proximate cause: A Wall Street Journal profile of Neumann detailed the entrepreneur’s odd habits and fanciful notions. Among Neumann’s stated goals: to become president of the world,

PRESIDENT TRUMP recently criticized the Federal Reserve—yet again. Calling Fed Chair Jerome Powell and his colleagues “boneheads,” the president expressed frustration that they haven’t done more to lower interest rates. Specifically, the president said we should, “get our interest rates down to ZERO, or less.” That last part—“or less”—was key. Not only should rates be lower, he argued, but they should be below zero, as they have been in Europe.
Last week, the Fed did indeed cut short-term interest rates—by 0.25 percentage point.

A DOZEN YEARS AGO, on my first day of business school, the professor stood at the board and illustrated a concept called “present value.” Truth be told, over my remaining time in school, I don’t think I learned anything more important than I learned in that first hour. It is, in my view, the single most useful tool in all of personal finance. Below, I’ll walk you through the concept and then illustrate some ways it can help you make better financial decisions.

INVESTMENT MANAGER Michael Burry made waves last week when he issued an apocalyptic forecast: Index funds, he said, are in a bubble similar to the housing bubble that ended very badly in 2008. Burry couldn’t say when the crash would come, but noted ominously that, “the longer it goes on, the worse the crash will be.”
Burry acknowledged that he’s “100% focused on stock picking,” so—at first glance—his criticism seems not unlike other active fund managers’ criticisms of index funds,

NIKOLA TESLA WAS a brilliant inventor, with nearly 300 patents to his name. He also had some unique habits. Among them: Every night, before he sat down for dinner, he would ask his waiter for a stack of 18 napkins. He would then use them to carefully wipe down his silverware. Even at the Waldorf Astoria hotel, where Tesla lived for decades and where the silverware was presumably clean, Tesla insisted on this time-consuming process before every meal.

ON DEC. 17, 2002, Harry Markopolos walked out of his Boston office wearing an oversized trench coat and a pair of white cotton gloves. His destination: the John F. Kennedy Presidential Library. 
A quiet figure, Markopolos worked as the chief investment officer at a small firm that specialized in trading stock options. He had heard about a New York-based competitor that was apparently doing similar work, but with much greater success. Following his boss’s recommendation,

IN DECEMBER 1954, 23-year-old John Neff hitchhiked from Ohio to New York in search of work. A Navy veteran, Neff had recently graduated college near the top of his class, with a degree in finance. His hope: to land a job as a stockbroker. But despite these qualifications, Neff was turned down. Why? According to a biographer, the brokerage firm felt “his voice didn’t carry enough authority.”
It didn’t take long for Neff to recover from this setback.

WHEN IT COMES to your financial life, should you care what other people think?
I’ve always found this a tricky question. On the one hand, it’s easy to fall into the trap of keeping up with the Joneses. If you care too much about what other people think, life can become very expensive—and that can be detrimental to your financial health.
On the other hand, it’s also natural to want to be accepted by one’s peers.

A LITTLE WHILE BACK, I found myself in an Uber. The driver began to share his political views. Before long, it became clear that his point of view was well outside the norm. He explained that the Federal Reserve is not a government entity, as most people believe. Rather, it is privately owned by the Rothschild family. In addition, he said, the Rothschilds also control the president—not just this president, but the presidency in general.

MY FATHER-IN-LAW—known to his family as Papa—passed away earlier this month. After 96 years, he had developed a number of money habits that were unconventional but quite effective, including these three:
1. Focused frugality. Papa was frugal, but not in the conventional sense. He didn’t practice extreme frugality and saw no virtue in intentional self-denial. Rather, he practiced what I would call focused frugality. If something was important—his children’s education, for example—he was happy to write that check.

FRAUD WEARS MANY faces. But depending on who you believe, potentially the most unusual is that of Jeanne Louise Calment. For years, the French-born Calment, who claimed to have been born in 1875, was celebrated as the world’s oldest person. By the time she died in 1997, she would have been 122— if she’d been telling the truth. New research, however, casts doubt on Calment’s claim. 
The real story, it turns out, may be that Calment actually died many decades earlier—in the 1930s.

A NEW FIRM CALLED Life + Liberty Indexes has created what it calls the Freedom 100 index of emerging markets stocks. Unlike other indexes, which typically weight stocks by their market value, the Freedom 100 weights countries by measures of freedom. These include freedom of religion, freedom of the press and freedom of assembly, among others. In short, the Freedom 100 looks like it could have been created by the authors of our Declaration of Independence.

A FEW WEEKS BACK, a reader—let’s call him Karl—challenged me with a question. Why, he asked, don’t I recommend momentum investment strategies?
If you aren’t familiar with the term, momentum strategies seek to buy stocks that have done well in the past, with the hope that they will continue rising, while also selling stocks that have done poorly, with the expectation that they will keep falling.
Karl asked why, in a recent article, I had dismissed momentum investing as the sort of thing that would turn your portfolio into an “unpredictable stew,” even though research has found that it can be profitable.