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White Oaks Investment Management Blog

History and Investor Behavior

[fa icon="calendar"] Aug 26, 2013 9:31:41 AM / by Robert Klosterman

Robert Klosterman

Mark Twain is reported to have said "History doesn't repeat itself, but it does rhyme". My observation is that history and investor behavior are worth watching. I found this post from "Seeking Wisdom" insightful and thought you might as well.

The following excerpt was originally posted on janav.wordpress.com, on August 4th, 2013:

Manias, Panics, and Crashes

Holland"History is replete with episodes of manias, panics and crashes. People go crazy and chase assets that are hot and in turn bid up the price to stratospheric levels. All these manias end with a crash. But these crashes were obvious only in the hindsight. In this post I am writing about the crashes that I read about and the ones that I have seen.

1. Tulip Bulbs – Holland (1637)

A tulip is a fat, round and bulging plant that usually flowers during spring. It comes in number of shapes and colors and it is one of the most magical flowers on earth. How much would you pay for it? I can buy 56 tulip flowers for $24.99 today. In Holland at the peak of tulip craze, in March 1637, a single tulip bulb sold for more than 10 times the annual income of a skilled craftsman. In 2011 the median household income in the United States is $50,000. Ten times that is $500,000. This is the price of a single tulip bulb if the bubble happened today. In the book Extraordinary popular delusions – Charles Mackay writes..."

Click Here to Read the Full Article

Source: www.janav.wordpress.com

Hedge Funds within a Wealth Management Strategy

Topics: Investments, Portfolio Management

Robert Klosterman

Written by Robert Klosterman

Robert Klosterman, CFP® is CEO and Chief Investment Officer of White Oaks Investment Management, Inc. and its predecessor R.J. Klosterman & Co, Inc. Bob has been a Certified Financial Planner licensee since 1989. He has a clear vision for the future having worked in financial planning and investment management since 1975, and feels a strong need to provide people with expert investment management services. As a Certified Financial Planner and certificate holder for Family Wealth Advising, Bob’s expertise and guidance have helped to fuel the steady growth of the firm.

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