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Pragmatic Capitalism

Practical Views on Money & Finance

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Vanguard Shuns Bogle, Increases International Exposure

John Bogle made headlines a few weeks back when he declared that a US investor shouldn’t have any foreign exposure. He was making a fairly active allocation decision here by saying that an investor should maintain a strict home bias. I said this wasn’t consistent with the idea of a “passive” portfolio selection and actually… Read More

Beware the “Passive” Wolf in Sheep’s Clothing

The dirtiest trend on Wall Street these days isn’t hedge funds or ponzi schemes.  It’s high fee “passive indexers” who are passing themselves off as something different from “active managers”.  I’ve already shown on several occasions how we are all “active” investors to begin with so this whole discussion gets confused before it begins (see here for… Read More

Education Is A Hard Row to Hoe

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

On the Extremes

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