Economics is categorized as a “social science” alongside anthropology, psychology and sociology. Which makes complete sense considering that economics studies the relationships that dictate how we produce and consume goods [ … ]
It’s Friday, the markets are rising (what else is new) and there’s not a lot of interesting things to talk about so let’s talk about something else – sports.
Jurgen Klinsmann, the coach of the US soccer team is caught in a maelstrom after deciding to leave Landon Donovan, the leading goal scorer in US Men’s National Team history off the team. But I don’t think he’s getting enough credit for the brilliance behind the move. And to me, it looks like a smart case of second level thinking.
This recent Gallup survey on expected future returns of asset prices is pretty interesting. It shows that most Americans still think that owning a home is the best way to generate a high return in the future:
In my view, “risk management” is largely about understanding the big picture so you can better decipher the world.
I don’t know what it will take for more people to take behavioral finance seriously and assimilate it into their work, but I do think that day is coming. Here’s to hoping it doesn’t take another 2008 style slap upside our economic head to get us there.
We humans are a fickle bunch. If there’s one thing you can pretty much guarantee, it’s that things are never really good enough. We seem to focus excessively on the [ … ]
I was intrigued by comments in this interview with Marc Faber of the Gloom, Boom and Doom Report. He said: “I am hoping for the market to drop 40% so [ … ]
The biggest risk in 2014 is likely to be a common one – recency bias. Otherwise known as your own brain’s tendency to focus excessively on things that have only just occurred.