‘Most Recent Stories’
The huge growth in index funds has caused some investors to debate the merits of the market’s “efficiency” and whether index funds would make the markets less efficient. The basic thinking is that if everyone starts buying index funds then that could create more opportunities for stock pickers who are able to go against the… Read More
Earlier this year Yanis Varoufakis, the incoming Finance Minister of Greece stated his position on Greece’s Euro membership clearly: “If it is in my power to determine…Greece will neither want to leave the euro nor threaten to do so. We should not have entered the euro – this is crystal clear, but once in, it… Read More
If I had to pick the single largest problem in the investment community it would be irrational expectations about future returns. This comes from several sources. The primary one being overconfidence bias. And the second being widespread misunderstanding of real, real returns. Overconfidence bias leads most of us to believe that we’re better at something… Read More
Michael Batnick had a great post this past week about the “lost decade” for the S&P 500 in the 2000s (see What Lost Decade?). It’s a nice reminder of the benefits of global and style diversification in a portfolio after the a select group of stocks in the U.S. have performed so well over the past couple of years.