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Pragmatic Capitalism

Practical Views on Money, Finance & Life

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Three Things I Think I Think – Scary Stories Edition

macro

Here are some things I think I am thinking about: 1 – Scary Stories Sell Well.  Morgan Housel has a great piece over at Motley Fool about why scary stories sound so smart in finance.  Morgan rings off a bunch of reasons why scary stories usually sound smarter than bullish stories.  This is particularly important… Read More

Revisiting Max Pain

strategy

This is a timely repost from last year.  Sharp downturns are always a good reminder that our financial theories might not always align with our financial reality.  As I like to say, if you don’t get your risk profile right at the start, the market will teach it to you at some point.  Knowing your… Read More

5 Big Macro Myths

myth

James Montier of GMO wrote a wonderful piece earlier this week that I am just getting around to posting.  Pragcap readers will really enjoy it as it covers a lot of ground that I’ve been harping on for years now.  James discusses 5 big macro myths that just won’t die including: Myth 1: Governments are… Read More

What a Time to Build Something!

macro

While all the doom and gloomers are running into their bunkers to snuggle with their bars of gold the real visionaries of the future are licking their lips in the current environment.  With interest rates close to 0% and commodities plummeting to 20 year lows the current environment is presenting itself as one of the… Read More

This Tech Cycle is/was Amazing

macro

Lots of people are declaring the end of the current tech cycle.  And others are expressing their disappointment with the way it contributed to society.  But I think these views are too near-sighted and unfairly malign technology’s incredible contributions in the last 10 years. Every time I read something about the evils of new technology I think… Read More

On the Probability of Another 2008

macro

I spoke at the AAII investor conference in Los Angeles this past weekend and one of the more common questions I got was whether we’re on the precipice of another 2008.  I probably don’t know much better than anyone else, but I’ve stated in the last few quarters that I don’t see it.  Here’s my… Read More

The Great Myths of Investing

myth

This is a guest post from the always awesome Bob Seawright (mostly awesome because he’s from San Diego) As the great Mark Twain (may have) said, “It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.” That’s particularly true in the investment world because… Read More

Was Raising Rates a Yuge Mistake?*

macro

The recent market jitters have a lot of people saying that the Fed might have made a yuge mistake by raising rates.  I’ve been a vocal proponent against raising rates, but I am not convinced that this was a policy error (just yet).  The risk/reward doesn’t look great in a world where the US economy… Read More

The Bear Market Playbook

strategy

As many markets enter bear market territory around the globe investors are inevitably getting skittish. Bear markets are a regular part of the financial markets, but that doesn’t make them easy to handle.  Here are some keys to handling a bear market: 1. Don’t lose your perspective.  In the last 45 years a globally allocated 60/40… Read More