I’ve been careful in my research on money not to call money a “store of value”. There’s a good reason for this which I will try to explain in this [ … ]
Category: How Things Work
How Bond Vigilantes Really Think
Discussions on interest rates tend to fall into two camps – the state based view and the market based view. The state based view says that the government can always [ … ]
Funding in an Endogenous Money System (Nerdy)
(I come across this topic quite a bit and I think it’s hard for some people to understand so I am going to get a little nerdy here and see [ … ]
5 Questions and Answers on “Passive” Investing, Part Deux
Here’s part two of the Q&A on passive investing. If you haven’t read part 1 it will be helpful to do that first since I laid out the necessary definitions [ … ]
5 Questions and Answers on “Passive” Investing
If you have read my 2012 essay on “The Myth of Passive Investing” then you probably don’t need or want to read what’s below. If there’s a consistent theme on [ … ]
The Difference Between Asset Price Inflation & Consumer Price Inflation
One of the more common responses to the fact that inflation is low is the idea that the inflation is all in asset prices. So, for instance, if someone were [ … ]
What Will Happen to Bonds if Interest Rates “Normalize”?
There’s a lot of chatter out there about rising interest rates and “normalizing” rates. As I’ve written about before, I think most of these fears are a case of short-termism [ … ]
Why Does Momentum Investing Work?
When you’re choosing an equity market allocation I generally prefer to keep things simple – just buy a low fee global market cap weighted portfolio and call it a day. [ … ]
Are Individual Bonds Safer than Bond Funds?
The WSJ was out with a piece discussing outflows from DoubleLine’s Total Return Bond fund this week. One of the reasons for the outflows was cited as the lack of [ … ]