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Pragmatic Capitalism

Practical Views on Money & Finance

‘Myth Busting’

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.

Debunking Some Common Investment Myths

I’m going to need a shower after this week because I really whored myself out to the financial news media for the book.  I continued the media parade on Fox Business yesterday where I talked with David Asman and Liz Claman about some common investment myths.  These segments are always so short, but here are… Read More

The Myth of the Omnipotent Central Bank

“Inflation”, said Milton Friedman, “is always and everywhere a monetary phenomenon”. Upon this statement has been built three decades of faith in the omnipotence of central banks. It does not matter what government does: it does not matter what markets do: it does not matter what shocks there are to the economy….

“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.