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Pragmatic Capitalism

Practical Views on Money & Finance

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Understanding the Risk Profile Parity Strategy

Rich people typically lean right politically. Are they motivated by deeply moral views or self-interest? This column argues that money makes you right-wing. It shows that lottery winners in the UK are more likely to switch their allegiance from left to right.

Anatomy of Bubbles and Crashes

“There is no standard definition of a bubble, but all bubbles look alike because they all go through similar phases. The bible on bubbles is Manias, Panics and Crashes, by Charles Kindleberger. In the book, Kindleberger outlined the five phases of a bubble. He borrowed heavily from the work of the great economist Hyman Minsky. If you look at Figures 9.7 and 9.8 (below), you can see the classic bubble pattern.”

Is a House Really a Good “Investment”?

I’ve had this post queued up for three months debating whether to post it or not because I know it will ruffle a lot of feathers.  Then I read this great article confirming many of my thoughts and I figured I should just throw this one out there for everyone to kick around….   Recent… Read More