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Pragmatic Capitalism

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Why I Never Vote for One Political Party

macro

The US political system is designed around one simple concept – compromise. Our constitutional republic was constructed with many checks and balances intended to keep one political party from gaining too much power. This design ensured that the USA was not a simple democracy with majority rule as the Founding Fathers feared tyranny of the majority… Read More

Obama’s Great Economic Blunder

macro

President Obama inherited an economic disaster. And since then the US economy has made a huge rebound. Yeah, it has been a bit underwhelming as growth has been somewhat sluggish, but we’ve been growing and we’ve recovered all of the jobs we lost during the crisis. The stock market has more than tripled and Americans are… Read More

The Pitfalls of the Passive Investing Marketing Pitch

strategy

Here’s a crazy headline from Reuters this morning: Largest exodus in five years hits U.S.-based stock mutual funds: ICI This is what most people will describe as the migration from “active” to “passive”. In other words, index funds are taking the place of more active stock picking funds. Of course, regular readers know there’s no such thing as… Read More

Three Things I Think I Think – Weekend Edition

macro

Here are some things I think I am thinking about: 1 – The Department of Labor’s Fiduciary Rule is Already Working. There was a bit of an uproar this week when Skybridge Capital’s Anthony Scaramucci said that Donald Trump would repeal the Department of Labor’s new fiduciary rule arguing that it’s nothing more than another onerous… Read More

The Biggest Risk of a Clinton Presidency

macro

Hillary Clinton will be a one term President. The reason I say this is because I suspect that her economic plan will not be very stimulative and I think that four more years of weak economic growth will be intolerable. And the main driver of my thinking here is deeply rooted in Bill Clinton’s presidency. Back… Read More

How Do Indexers Do Better Than Average?

myth

One of the more common investing myths is the idea that indexing is necessarily “average”.¹ It makes sense at first. If you bought all of the stocks in the market then you’d generate the average return.  It would be like playing fantasy football and picking all of the players in the NFL. You would lose… Read More

How the GOP Lost A Slam Dunk Election

macro

As Donald Trump’s poll numbers crash to Earth the autopsy team is starting to assemble to assess what exactly went so wrong with the 2016 election process. How did a slam dunk election turn into such a catastrophic loss for the GOP? And yes, this should have been a slam dunk. In a world of… Read More

Do the Financial Markets Prefer Clinton or Trump?

macro

I recently got an email from someone who said they were going to sell all of their stocks until after the election was settled. They think that Clinton will win and that her “tax and spend” policies will cause interest rates to skyrocket which will crash the stock market. He says he will then “reinvest… Read More

Three Reasons I Bought a New Home

macro

If I’ve seemed unusually busy in the last 6 weeks there’s a good excuse for that – we bought a new house. Our first house, actually. As a Southern Californian I’ve never been convinced by the financial benefits of owning a house. After all, buy/rent comps in this area tend to be similar to those of… Read More

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