Pragmatic Capitalism

Practical Views on Money & Finance

‘Most Recent Stories’

Indexing Really is the Future of Investing

John Bogle presented at this year’s Grant’s Spring Conference and made the argument for indexing as the way forward for investors. You can find his presentation slides here.  Jim Grant offered some push back from the “active” side which raised the question – is indexing superior to specific security selection and which is the way forward… Read More

What Are Your Actual Returns?

I always say historical returns are always a better gauge of possible risks than they are of future returns investors can expect. It’s very easy to look back at past market performance and assume it would have been easy to earn those return numbers. Investors are much better off figuring out ways to earn as much of the performance from the market or fund returns going forward by reducing commissions, fees, taxes and unnecessary portfolio turnover.

Three Things I Think I Think

The latest edition of some things that I think I am thinking about: 1)  The US economy sure looks anemic. Q1 GDP is expected to come in at 1.2%. My own metrics show even lower growth possibly nearing 0.5%.  But the Atlanta Fed notes that Q1 has been weak throughout the recovery: The picture below… Read More

Finding Religion on “Crowding Out”

Here’s Paul Krugman on a recent IMF report which says that government deficits don’t necessarily “crowd out” private investment: The false belief is that government deficits necessarily “crowd out” investment, so that reducing deficits should free up funds that lead to higher investment. Not so, says the IMF: when governments introduce deficit-reduction measures, investment falls… Read More

Placing Constraints on Yourself

A few weeks ago I wrote about The Psychology of Sitting in Cash and a reader left a great comment about how he has tried to solve this problem in his own portfolio using the financial crisis as an example:

The Return of Wall Street Week

Wall Street Week with Louis Rukeyser was probably the greatest financial TV show that ever aired. It was the show that got me into investing when I was a teenager and the last financial TV show that I watched with any real dedication. So I am excited to see that Anthony Scaramucci has purchased the rights… Read More