Skip to content

Financial bullshit.

Hey hey, Apexians. I’ve had a ton of fun diving back into the world of personal finance after nearly three months spent out of the loop. It’s especially interesting to watch as the financial world begins to teeter under the weight of all the bullshit that’s been piled onto it: cryptocurrency! meme stocks! institutional investors inflating the housing market!

Anyhow, here are today’s stories…

Individual differences in susceptibility to financial bullshit. [Journal of Behavioral and Experimental Finance] — “Consumers particularly vulnerable to financial bullshit were more likely to be young, male, have a higher income, and be overconfident with regards to their own financial knowledge. This finding is in line with prior research that found age to be positively related to people’s ability to distinguish profound and pseudo-profound communication in general.”

Car buyers balk at monthly fees for add-on features. [Axios] — “The entire auto industry is headed toward subscription features amid the shift to software-controlled electric and automated vehicles that can be regularly updated like a smartphone. In many cases, premium features are included for an initial trial period, but then car owners have to pay a monthly fee to keep them.” I hate the subscription economy. It’s pure bullshit.

How to invest with a looming recession. [Oblivious Investor] — “How should we invest if a recession is looming? About the same way we invest the rest of the time. It doesn’t usually make sense to make portfolio changes based on economic news, though changes within the fixed-income part of the portfolio can make sense, as the fixed-income option with the highest interest rate for a given level of risk can change over time.”

How to figure out if you can actually afford that new home. [The New York Times, so possible paywall] — “High inflation often translates to high anxiety, which is why many Americans are striving to lock in the cost of one of their most basic, most human needs: a home. But with housing prices already at lofty levels and mortgage rates spiraling, many buyers may be tempted to jump in before they’re ready — or because they fear the situation will only get worse.”

The rich and the wealthy. [Collaborative Fund] — “I’m always interested in the difference between getting rich and staying rich. They are completely different things, and many of those skilled at the former fail at the latter. Part of this topic is knowing the difference between rich and wealthy.”

That’s it for Thursday. Tomorrow, I’ll have more money stories to help you try to separate the good from the bullshit…