Paul Krugman has a good article out this morning on the difficult process of changing people’s minds about certain things. He wonders how so many people can still argue that the Fed has created the risk of high inflation and other ideologically driven positions that have turned out to be so wrong since 2009. More… Read More
Investors have to understand that recessions are an unavoidable fact of life. But they also provide investors with lower prices to buy stocks. So while they’re painful in the short-term, if you have the guts and capital to make purchases, recessions can offer some of the best buying opportunities in the long-term.
There’s a strong tendency in the financial markets to live in the extremes. That is, we often draw a line in the sand. You’re either bullish OR bearish. You’re in OR you’re out. You’re on this side OR that. But like most things in life, the best place to be is often somewhere in the middle. Living on… Read More
Matthew Klein has a very good piece over at FT Alphaville (which, by the way, could be the single best overall financial blog on the internet so if you don’t read it then get your act together) discussing the rise of the bond market and the surge in issuance in recent years. He talks about… Read More
Jason Smith wrote a tremendously good post on the pitfalls of relying on expectations in economic models. We see this all the time in mainstream economics where the economist relies a good deal on market expectations to infer certain conclusions. For instance, if the Fed implements a new round of QE we often see economists… Read More
I have to admit something – I’ve become thoroughly bored with all the coverage of Greece and its impact on the global economy. You’ve probably noticed that I haven’t had much to say on the topic and that’s primarily because I think that there isn’t much more to be said on the topic. This doesn’t… Read More
It was recently brought to my attention that it’s been ten years now since I started my first full-time job in the investment industry. More experienced investors might not think this is a very long time, but it feels like an eternity to me considering my current level of understanding compared to what I knew when I first started out. Here are some observations about my time in the world of investments from the past decade: