From the monthly archives:
Carl at Behavior Gap posted an article yesterday about the different variables involved in a financial plan. He made an excellent point: Rather than have a greater equity allocation than you’re comfortable with, you can adjust some of the other variables. You can save more, retire later, spend less in retirement, or leave less to [...]
{ Comments on this entry are closed }
If you read many books–or academic papers–about investing, you’re bound to run into somebody talking about Efficient Market Theory (aka the Efficient Market Hypothesis). In short, EMT argues that the hundreds of thousands of investors constantly bidding stock prices upward and downward creates a situation in which, at any given moment, a stock’s price must [...]
{ Comments on this entry are closed }
I’m no mathematician or physicist, but I’ve always found the concept of chaos theory to be fascinating. The main idea of chaos theory (as I understand it anyway) is that: Every event is the result of literally thousands of different variables interacting, and Changing just one of those variables (even a seemingly insignificant one) can [...]
{ Comments on this entry are closed }
I briefly touched on the idea of sample size a while back when discussing the likelihood that a fund manager’s performance could be the result of luck rather than skill. Today I’d like to discuss the idea in a bit more depth. Generally speaking, the more observations made in any given study (i.e., the larger [...]
{ Comments on this entry are closed }
One week until the book‘s official 5/1 release date. You’ll notice I’ve added a link in the sidebar, and I’ll soon be adding a link to Amazon in the “like this article?” blurbs at the end each post. But that should be it–I won’t be spamming you like crazy about it. And now on to [...]
{ Comments on this entry are closed }
The results are in: S&P has released their Indices Versus Active Funds Scorecard for year-end 2008. And guess what? It’s ugly. Active funds got crushed. The passive index benchmark outperformed the majority of active funds in 9 out of 9 equity fund categories (i.e., large cap growth, large cap value, etc.) for the 5-year period [...]
{ Comments on this entry are closed }
Enter your email to receive free updates from Oblivious Investor:
Other ways to follow this blog:
