Monday Night Finance- Volume 127

Published
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How the Danglars Fortune Disappears in The Count of Monte Cristo

Occupy Wall Street! Eat the rich! It seems like over the last decade, a lot of animosity has built up towards the billionaire class. Besides petty vandalism, have these movements really done anything to stop billionaires? If you’re upset with the world right now, it might be nice to escape into fiction to see how one man got revenge on an evil billionaire. The Count of Monte Cristo delivers one of literature’s most satisfying tales of revenge, and few characters crash harder than the banker Danglars. Once one of the wealthiest and most powerful men in Paris, he ends up humiliated, destitute, and alone—all thanks to the carefully orchestrated schemes of the Count. So if you’re looking for a blueprint on how to actually take down a billionaire, you might want to keep reading.

Today, millions of people similarly lose their money to all kinds of bad investments and bad actors. Do not ever invest or send someone money you’re not prepared to lose forever. If there’s an investment with any more risk than an index fund, do NOT put up so much money that it hurts you if it loses.

~Darcy, We Want Guac

Darcy at We Want Guac breaks down exactly how Danglars loses everything, piece by piece, at the hands of the Count. Unlike his fellow conspirators, who are undone by past sins coming to light, Danglars’ downfall is purely financial—his one true weakness. Through clever manipulation of stock markets, strategic withdrawals, and some well-placed deception, the Count slowly drains him dry. And just when Danglars thinks he can escape, he finds himself cornered with nowhere to turn. It’s a brilliantly executed revenge that feels almost surgical in its precision. If you want the full breakdown of this financial and psychological takedown, check out the full article!

Don’t Assume You Know

Have you seen the news lately? It’s kind of like riding a rollercoaster. When big political or economic changes make headlines, it’s natural to wonder how they’ll affect your investments. Should you adjust your portfolio? Brace for a downturn? Or stay the course? While history shows that the stock market has performed similarly under different administrations, certain policies—like tariffs or major government cutbacks—can stir up concern. But before making any rash decisions, it’s important to take a step back and assess the bigger picture.

We can start with a closer look at the two policies that have received the most attention: the imposition of higher tariffs and the creation of a new cost-cutting department under the leadership of Elon Musk.

~Adam M. Grossman, Humble Dollar

Adam M. Grossman from Humble Dollar breaks down two major economic policies currently making waves: new tariffs and government cost-cutting measures. While both could have significant effects—potentially raising prices and impacting employment—their actual outcomes are far from certain. Some experts argue the changes could be temporary or might even help stabilize long-term issues like inflation and national debt. The key takeaway? Investors shouldn’t assume the worst but should always prepare for market uncertainty. A well-diversified portfolio with a mix of stocks, bonds, and cash is the best defense against any economic storm. For a deeper dive into how these policies might play out, check out the full article!

Wow, have you seen the stock market lately?

Have you seen the stock market lately? If you haven’t checked out your 401(k) you might be in for a pleasant surprise. The stock market has been on a wild ride, soaring to new heights and leaving many investors wondering if they’ve suddenly reached financial independence or if this is all just a bubble waiting to pop. The recent surge, largely driven by excitement around artificial intelligence, has pushed valuations to unprecedented levels. But is this growth sustainable, or are we setting ourselves up for a market correction? To answer that, we need to take a step back and understand what drives stock prices in the first place.

Now back to the stock market. If you put $100,000 in the market in 2019 and reinvested the dividends, today you’d already have an astonishing $256,960 (a 157% gain on your original investment)But in that same time period, your share of company earnings from that $100,000 basket of stocks has only gone from $5290 to $7540 (a measly 42% gain)… In other words, the Price-to-earnings ratio has risen from about 20 back then, to about 30 today.

~Peter Adeney, Mr. Money Mustache

According to Peter Adeney, also known as Mr. Money Mustache, today’s market boom is largely concentrated in a handful of tech giants—the so-called “Magnificent Seven.” These companies have fueled much of the recent gains, but their sky-high price-to-earnings ratios suggest that future returns might not be as generous. While AI is undeniably transforming industries, history shows that long-term stock market growth tends to be more stable and predictable. So, should you panic and sell everything? Probably not. Instead, Adeney suggests sticking to time-tested investing principles: diversify, avoid market timing, and stay patient. If you want to dig deeper into the numbers and alternative investment strategies, check out the full article—it’s an insightful read for anyone navigating today’s financial landscape.