Categories

Pragmatic Capitalism

Capital for Living a More Practical Life

‘Investment Strategy’

The End of Stock Picking

Jason Zweig has a nice piece in yesterday’s Wall Street Journal on the end of the stock picking asset manager.  He notes: The debate about whether you should hire an “active” fund manager who tries to beat the market by buying the best stocks and avoiding the worst—or a “passive” index fund that simply matches the… Read More

More Thoughts on the CAPE and Valulations

I’ve made my opinion on valuations and the use of CAPE pretty clear – these sorts of metrics don’t tell us much about the macro environment because the whole idea of ” value” is dynamic and evolving.  If I am right then trying to calculate a market “value” through these types of metrics is likely to… Read More

“Smart Beta” & Smart Beta Hypocrisy

Smart beta is the new buzzword on Wall Street. No one really knows what it is because the term doesn’t have a specific definition, but the easiest way to understand what “smart beta” funds do is that they’re basically tweaking index funds to try to generate some extra return.

Is the Stock Market a Zero Sum Game?

I got this question in the forum over the weekend and I think it’s an important one since I seem to get it quite often.   It’s interesting to note that there doesn’t actually seem to be a very good answer online (at least not as far as my brief search went) so I used a… Read More