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Pragmatic Capitalism

Practical Views on Money, Finance & Life

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Did the Failure of Orthodox Economics Contribute to Trump’s Win?

macro

Here’s a provocative piece from the Institute for New Economic Thinking declaring that orthodox economics has been dealt a “mortal blow” by the Trump victory. Sanjay Reddy writes: “Trumpism is a crisis for the most prestigious methods of understanding economic and social life, ennobled and enthroned by the metropolitan academy of the last third of… Read More

A Lesson from the Market’s Overreaction to Trump’s Win

strategy

There were many dire predictions about the stock market in the wake of Donald Trump’s victory. These predictions even looked credible in the moments after his win when the S&P 500 immediately collapsed 5% on the evening of the election. Then, miraculously, the S&P 500 bounced right back and is up about 2% since election day.… Read More

Curating a Social Media Feed to Make Better Decisions

macro

One of the most common problems in economics and finance is the fallacy of composition. The fallacy of composition occurs when you fail to understand the entirety of an argument. As an example, a common fallacy of composition in finance includes the cash on the sidelines myth. The cash on the sidelines myth is the… Read More

Understanding the Art of Doing Nothing

strategy

Most of what we end up doing in our lives is determined not by what we decide to do, but by what we decide NOT to do. In the course of any given day we decide not to do millions of things. Eliminating all of these actions results in a direction that determines how we… Read More

The Failing Pursuit of the Truth…

macro

A little over 8 years ago I started writing this blog about the financial crisis. The website became surprisingly popular and within a few months was generating millions of page views per month. It was a scary time and I noticed an obvious trend in my writing – writing about scary things attracted a lot more… Read More

Have We Reached Peak Robo Advisor?

strategy

The news of an executive reshuffling at WealthFront comes at an interesting juncture for the Robo Advisory space. With growth slowing for some of the main players and more big names entering the game, it’s worth considering if we’ve seen peak robo advisor? My view has always been the same – robo advisors are mostly… Read More