Pragmatic Capitalism

Practical Views on Money & Finance

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Why Greece Won’t Leave the Euro

Earlier this year Yanis Varoufakis, the incoming Finance Minister of Greece stated his position on Greece’s Euro membership clearly: “If it is in my power to determine…Greece will neither want to leave the euro nor threaten to do so. We should not have entered the euro – this is crystal clear, but once in, it… Read More

Setting Realistic Investing Expectations

If I had to pick the single largest problem in the investment community it would be irrational expectations about future returns. This comes from several sources. The primary one being overconfidence bias. And the second being widespread misunderstanding of real, real returns. Overconfidence bias leads most of us to believe that we’re better at something… Read More

The Difference Between Good & Bad Markets

Michael Batnick had a great post this past week about the “lost decade” for the S&P 500 in the 2000s (see What Lost Decade?). It’s a nice reminder of the benefits of global and style diversification in a portfolio after the a select group of stocks in the U.S. have performed so well over the past couple of years.


Count on the flu to strike right when the North Koreans hack into my website and try to hold me hostage for ransom. They insisted that I must be incredibly wealthy because I understand money, but I assured them that wasn’t the case. Luckily, they accept dogs and chickens as a means of payment so… Read More

More on Falling Global Income Inequality

A few more thoughts on the income inequality chart I posted earlier. The strange thing about the rising inequality debate is that people often use it to imply that capitalism isn’t working or that the world is becoming a worse place than it once was. But this is extremely misleading. Yes, while domestic inequality is rising… Read More