Categories

Pragmatic Capitalism

Practical Views on Money & Finance

‘Myth Busting’

Why The Efficient Market Hypothesis is Useless

I noticed Noah Smith and John Authers on Twitter discussing how great the Efficient Market Hypothesis is because it explains why indexing works. I responded saying that the EMH really has nothing to do with why indexing works. They didn’t seem to see my point of view so let’s try this again and see if we… Read More

The 5 Best Things I Wrote About in 2014

I’ve written an embarrassing number of posts on this website over the last 6 years. Most of them probably aren’t all that useful, but every once in a world this blind squirrel catches a nut. Here are five of the more influential and popular things I wrote about this year: 1.  Pragmatic Capitalism: What Every Investor… Read More

William Vickrey’s 15 Economic Myths Debunked

This is an oldie but a goodie.  William Vickrey was a Canadian economist and Nobel Laureate.   He was well known for being critical of most things out of the Chicago School of Economics.  This piece on 15 economic fallacies has been largely ignored, but the lessons are important and certainly as relevant today as… Read More

This Commonly Referenced USD Purchasing Power Chart is Useless

You’ve almost certainly seen the chart below over the years – it shows the purchasing power of the US Dollar over time.  It looks terrifying.  And it’s constantly cited by hyperinflationists and other people trying to convince you that the world is quickly coming to an end thanks to the “fiat monetary system” and all the… Read More

The Myth of the Passive Investor

Some investors have such little faith in the merits of active management that they prefer to take a 100% passive approach. We think they may be making more active decisions than they realize.