Categories

Pragmatic Capitalism

Practical Views on Money, Finance & Life

Latest Articles
Popular Articles
Recommended Reading

Latest Articles

ajax-loader

My “Wisdom” on Diversity in Finance

opinion

The blogger wisdom series continued today with a question about diversity in finance.  Tadas asks: It does not escape me that the entire distribution list on this “Blogger Wisdom” e-mail chain is entirely male. I have written extensively on why this is an issue for the investment industry. What, if anything, can be done to… Read More

My “Wisdom” on Index Funds

strategy

Tadas Viskanta continues his series on “finance blogger wisdom” today discussing index funds. Specifically, he asks: Should we care that the percentage of assets in indexes is on the rise, or should we just sit back and enjoy the (low cost) ride? My answer was, um, not very thorough (again): Indexing requires active management in order… Read More

My “Wisdom” on Smart Beta & Factor Investing

strategy

The latest installment from Tadas Viskantas’s series on “financial blogger wisdom” (is that an oxymoron?) asked a bunch of smart people (and also me) about smart beta. I was short: Smart beta and factor investing are the newest versions of high(er) fee active management promising the fairy tale of “market beating” returns in exchange for… Read More

My “Wisdom” on Robo Advisors

strategy

Tadas Viskanta has put together a nice collection of opinions regarding the new “Robo Advisor” trend.  Here’s my general view: “Robo “advisors” aren’t really advisors. They’re robo asset allocators. The robotic allocations are susceptible to flawed risk profiling and inefficient portfolio management for most people with a sophisticated financial plan.  The business of asset allocation… Read More

How to Avoid the Problem of Short-Termism

strategy

If I had to pinpoint the biggest problem for most asset allocators I would probably say short-termism.  Short-termism is the tendency to judge financial markets in periods that are so short that it results in higher fees, higher taxes and lower average performance.  We’ve become accustomed to judging the financial markets in quarterly or annual periods… Read More

Understanding Flow of Funds Accounting

macro

After the post a few weeks ago where I showed that Post-Keynesian Stock Flow Consistent modeling has become very popular on Wall Street I got a ton of emails asking for more details on this approach. So, here’s a short description and a few good links for you to explore if you’d like. Stock flow consistent… Read More

Three Things I Think I Think – Weekend Edition

macro

Here are some things I think I am thinking about over the weekend – negative rates, lost manufacturing jobs and debt fallacies of composition. Where did my life go so wrong that I spend my weekends thinking about these things?  Perhaps a post for another day…. 1 – Shorter Ben Bernanke on Negative Rates –… Read More

Opinion: The Rise (and Fall) of Donald Trump

opinion

A bit off topic here, but since it’s the weekend and this is basically all anyone in the world talks about anymore, I figured I’d chime in with an update on Donald Trump.  If you recall my 10 “Useless” 2016 predictions, I said: Donald Trump will be the next President of the United States.  The… Read More

ajax-loader