Categories

Pragmatic Capitalism

Practical Views on Money, Finance & Life

Latest Articles
Popular Articles
Recommended Reading

Latest Articles

ajax-loader

Hedge Funds – Misunderstood, but Still not Worth it

strategy

Cliff Asness has a wonderful new piece on Bloomberg View discussing hedge funds.  He basically argues that: Hedge fund criticism has been unfair largely due to false benchmarking. Hedge funds should hedge more. Hedge funds should charge lower fees. These are fair and balanced statements. And they’re worth exploring a bit more. The first point is… Read More

A Larger Deficit Won’t Cause Hyperinflation

macro

We’re now 7 years out of the grand monetary experiment and there’s still no inflation on the horizon. In fact, we seem to be coming to an increasing consensus that monetary policy and QE just hasn’t done much. These are all things I expected from the start of QE – it wouldn’t cause high inflation, wouldn’t… Read More

Trump is Wrong on the National Debt

macro

Donald Trump made some controversial comments the other day regarding the national debt. First, he said: “We’re paying a very low interest rate — what happens if that interest rate goes up 2, 3, 4 points?” he said. “We don’t have a country. We have tremendous debt, tremendous.” Second, he said: “I’ve borrowed knowing that… Read More

Why Does Indexing Shrink Alpha?

strategy

Jesse over at Philosophical Economics has written a couple of really fantastic posts (see here and here) on indexing and market efficiency.  His basic conclusions: The trend in passive investing is sustainable. The rise of passive indexing improves market efficiency. I’ve made the same points in a series of posts in recent months including: Passive… Read More

How Scared Should we be About Future Returns?

strategy

McKinsey had a really nice piece this week on the future of financial market returns. The basic conclusion – lower your expectations and hunker down for some lean years in the financial markets.  McKinsey says that equities have benefited from unusually favorable conditions in the last 30 years such as low valuations, falling inflation, falling… Read More

ajax-loader