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Pragmatic Capitalism

Practical Views on Money & Finance

‘Myth Busting’

“Smart Beta” & Smart Beta Hypocrisy

Smart beta is the new buzzword on Wall Street. No one really knows what it is because the term doesn’t have a specific definition, but the easiest way to understand what “smart beta” funds do is that they’re basically tweaking index funds to try to generate some extra return.

The Lack of Business Investment Myth

There’s a myth in the current economic recovery that just won’t die. It’s this flawed idea that businesses aren’t investing, aren’t hiring and aren’t contributing at all to the recovery. This is not true.

The Biggest Myth About Quantitative Easing

I have spilled a huge amount of ink about Quantitative Easing and its impacts over the last 5 years (see here). One of my key points about QE is to highlight how it probably hasn’t had as much impact on the broader economy as some people tend to imply. In other words, it’s not as stimulative as many think….

The “Fat Pitch” Myth

I was intrigued by comments in this interview with Marc Faber of the Gloom, Boom and Doom Report.  He said: “I am hoping for the market to drop 40% so stocks will again become, from a value perspective, attractive again…I think stocks are, by and large, fully priced.” I run into this sort of thinking… Read More